KUALA LUMPUR (Feb 14): EA Technique (M) Bhd (KL:EATECH) reported a 7.6 times increase in its fourth quarter net profit to RM25.17 million from a year ago, fuelled by other operating income of RM24.21  million.

According to the group’s financial statement for the quarter ended Dec 31, 2024 (4QFY2024), total other income primarily comprises waiver from settlement arrangements with scheme creditors under the Scheme of Arrangements (SOA), as well as claims from customer and insurance.

EA Technique’s revenue fell 11.6% to RM29.29 million from RM33.13 million a year ago, due to lower utilisation rate of its fast crew boats.

According to EA Technique, with the release of its 4QFY2024 results, the group has completed the final quarter required to proceed with its official application to Bursa Malaysia for the removal of its Practice Note 17 (PN17) status.

 The group fell into PN17 in 2022 after its balance sheet and earnings were affected by hiccups in delivering a floating production offloading vessel to Malaysia Marine and Heavy Engineering Bhd (KL:MHB).

For the full year of FY2024, EA Technique’s net profit jumped more than six times to RM154.33 million from RM23.69 million in FY2023, primarily driven by the one-off income related to its creditor scheme and PN17 regularisation plan.

Excluding exceptional items, the company’s core earnings stood at RM25.2 million in FY2024, as the company saw total revenue fall 7.8% to RM122.66 million from RM133.08 million in FY2023.

As of Dec 31, 2024, the company held a total order book valued at RM181.3 million, along with extension period contracts worth RM227.1 million.

The new orders are for the provision of fast crew boats (FCB) for a primary period of three years with the option to extend for another three years, worth a contract value of RM39.42 million for the first three-year period.

In September 2024, EA Technique was awarded a contract extension by Petronas Floating LNG 1 (L) Ltd for three harbour tugboats, with a contract duration of two years commencing November 2024. The contract value is approximately RM40.95 million.

In October 2024, PFLNG1 extended its charter for two harbour tugboats from EA Technique for a contract duration of two years commencing November 2024, for approximately RM22.9 million.

“The above contract of tugboats will contribute positively to the earnings and net tangible assets of the Company for the financial year ending 31 December 2025.

“The company continues to improve on operational efficiencies to maximise vessels' utilisation rate, implement cost savings and containment through strategic procurement program, ensure extension of existing contracts and practice effective cash management,” said EA Technique.

The group is also seeking new business opportunities and contracts that will contribute positively to earnings stability and cash flow certainty.

Meanwhile, the group has received shareholders’ approval for a rebranding to Avangaad Bhd. According to its executive director Datuk Wira Mubarak Hussain Akhtar Husin, the rebranding signifies a strategic transformation for the company to become a forward-thinking marine and offshore solutions provider.

EA Technique’s shares closed down half a sen or 1.6% to 30.5 sen on Friday, valuing the company at RM404.51 million.