KUALA LUMPUR (Oct 24): Shares of TAS Offshore Bhd (KL:TAS) surged on Thursday to their highest in four months in active trade after the shipbuilder announced contract win for eight tugboats worth RM49.1 million.
TAS Offshore rose as much as 13% or 8.5 sen to 74.5 sen, its highest since July 25. The stock closed the day 8.3% or 5.5% higher at 71.5 sen, giving it a market capitalisation of RM129 million. Trading volume totalled 6.09 million shares.
The company stated that the vessels, scheduled for delivery in the second quarter of 2025, have been contracted by "new customers from Indonesia", but it did not disclose the names of the customers.
The contracts are anticipated to enhance the group’s earnings and net assets for the fiscal year ending May 31, 2025 (FY2025), according to a stock exchange filing on Wednesday.
TAS Offshore’s primary clients are based in Indonesia, which contributed 84.3% of its total revenue in FY2024. Singapore accounted for 14.3%, while Malaysia made up 1.4%.
In the fourth quarter ending May 31, 2024 (4QFY2024), the shipbuilder reported a net loss of RM889,000, in contrast to a net profit of RM15.71 million during the same period the previous year, as revenue plummeted by 75% to RM4.54 million from RM18.29 million.
The higher earnings in 4QFY2023 were attributed to an increased number of vessel deliveries and a one-time gain from the dissolution of a subsidiary.
For the entire FY2024, TAS Offshore achieved a net profit of RM9.61 million on revenue of RM72.33 million.