KUALA LUMPUR (Oct 14): EA Technique (M) Bhd (KL:EATECH) said it is in final stages of tendering for several high-value contracts, including the anticipated project with Petroliam Nasional Bhd (Petronas) for the Nautica Tembikai floating storage and offloading (FSO) vessel.
The marine transportation and offshore storage company, which is on track to exit its Practice Note 17 (PN17) status by the first quarter of 2025, said it has diversified its client base by recently registering as an official vendor with Brunei Shell.
The client diversification opens new avenues for long-term contracts at higher charter rates, it said in a statement.
“The growing demand for marine transportation and offshore support services boosts our confidence in stability and advancement of portfolio. With strengthened governance and new management, EATech is more agile and well-positioned to seize upcoming market opportunities,” said EATech executive director Datuk Mubarak Hussain Akhtar Husin.
EATech is also “the only Malaysian company eligible to bid for jetty operation tenders”, he said.
In the statement, the group said it has secured contracts totalling RM136.3 million, with RM281.2 million in extension options.
“Our utilisation rate currently stands at 97%, and with major contracts in place, we are confident of achieving continued profitability. This will enable us to meet the requirements for exiting PN17,” said Mubarak Hussain.
For the second quarter ended June 30 (2QFY2024), EATech reported a net profit of RM94.65 million on a revenue of RM30.6 million. This brought its net profit for the first six months of FY2024 (6MFY2024) to RM101.54 million, with total revenue of RM61.8 million.
With the completion of its regularisation plan in mid-2024, the company is now focused on achieving two consecutive profitable quarters, a key requirement for the upliftment of its PN17 status.
The regularisation plan saw Voultier Sdn Bhd, which is 70%-owned by Mubarak Hussain, emerged as the largest shareholder in EATech with a 51% stake.
Another 30% stake in Voultier is held by Datuk Lai Keng Onn, who is managing director of Kinergy Advancement Bhd.
EATech was placed under PN17 in February 2022, after its shareholders’ equity fell to RM5.96 million at end-December 2021, 50% below its share capital of RM179.76 million.
The group also faced complications and setbacks during its foray into the engineering, procurement, construction, installation and commissioning (EPCIC) segment — in particular, cost overruns in its US$191.8 million contract to convert an FSO facility for Malaysia Marine and Heavy Engineering Holdings Bhd (KL:MHB). It took up the project in 2015, and delivered it six years later in 2020.
Shares of EATech closed half a sen or 1.64% lower at 30 sen on Monday, giving it a market capitalisation of RM391.46 million.