KUALA LUMPUR (June 22): Elridge Energy Holdings Bhd (KL:ELRIDGE) expects trade receivables to decline in the next quarter after the biomass fuel producer collected all of the money owed by customers last year.
Invoices issued but unpaid totalled RM107.66 million as at end-March and the company remains confident of collecting the dues as the amount is mostly owed by long-time customers who paid on time in the past, executive director Salihudin Mohd Razali said.
"We do not foresee [any issues] in collecting the outstanding amounts," he said at a briefing post-annual general meeting on Monday (June 22).
Elridge mainly manufactures and sells palm kernel shells and wood pellets to millers and biomass power plant operators.
Trade receivables at Elridge, listed barely two years ago on the ACE Market, have more than doubled to RM89.84 million at the end of 2025 from RM43.1 million a year earlier. Shares of Elridge have fallen over 40% from their peak of RM1.49 in February this year.
Salihudin also said the company has no immediate plans to pay dividends as the company needs to retain cash to fund its expansion plans, which he believes will create greater value for shareholders through higher profitability going forward.
"This is only our second year as a listed company, and we are still expanding. We can consider paying a dividend at a later stage,” he said.
Elridge’s cash hoard, nevertheless, grew nearly 16% to RM187.56 million at the end of March 2026 from a year ago.
A sharp decline in overseas sales was largely due to the location of intermediary traders rather than the ultimate destination of its biomass products, Salihudin said.
The apparent decline in overseas sales did not necessarily reflect weaker end-user demand, as overseas customers may procure biomass products through Malaysian-based trading companies, he noted.
The company’s customers are primarily trading houses that distribute biomass fuel to end-users such as manufacturers that require industrial boilers for heat or energy generation.
he remarks also follow sharp declines in foreign revenue sources. International revenue only accounted for 24% of the total revenue, compared to more than half in 2024 and 95% in 2023.
Revenue recognised from Indonesia fell to a mere RM9.1 million, compared with RM47.98 million in 2024 and RM119.55 million in 2023. The Singapore market declined from RM105.18 million in 2023 to RM67.7 million in 2024 and RM3.6 million in 2025.
Revenue from Malaysia, meanwhile, grew to RM329.48 million in 2025, from RM186.9 million in 2024 and RM16.8 million in 2023.
All in all, Elridge remains optimistic of outperforming its revenue and earnings in 2025, driven by increasing demand for its biomass fuel.