&bull The Group&rsquo s IE and CP business segments were the main revenue drivers for 1H2021 with revenue growth in excess of 80%

 

&bull The Group&rsquo s IE order book is S$14.7 million as at 30 June 2021, of which S$6.0 million is attributed to ASOM that provides specialised on-site vessel repair and maintenance solutions to FPSO and FSO vessels

 

&bull The Group to focus on stabilising its business activities and undertaking a strategic review of its business model

 

Singapore, 14 August 2021 &ndash Beng Kuang Marine Limited (&ldquo 明 光 集 团 &rdquo or the &ldquo Company&rdquo , and together with its subsidiaries, the &ldquo Beng Kuang Group&rdquo ), has announced today its financial results for the half year ended 30 June 2021 (&ldquo 1H2021&rdquo ).

 

Striving to be the &ldquo Preferred Partner&rdquo in providing total solutions for the marine, offshore oil and gas industries, the Group has four key business segments as follows:

 

1. Infrastructure Engineering (&ldquo IE&rdquo ) &ndash Providing a spectrum of turnkey engineering services from planning and project management to implementation involving procurement, fabrication, corrosion prevention, testing, installation and pre-commissioning of steel work modules and structures

 

2. Corrosion Prevention (&ldquo CP&rdquo ) &ndash Providing corrosion prevention services in several established shipyards in Singapore and Batam, Indonesia

 

3. Supply and Distribution (&ldquo SD&rdquo ) &ndash Providing a variety of marine and industrial hardware, tools and equipment as well as consumables under its house brands like MASTER, MULTI-FLEX, WELL and SPLASH

 

4. Shipping (&ldquo SH&rdquo ) &ndash Operating two livestock vessels and two Indonesian-flagged assist tugs

 

Revenue growth of 30% to S$27.86 million in 1H2021: The Group&rsquo s IE and CP business segments registered strong revenue growth in 1H2021, which saw CP&rsquo s revenue increasing 85% to S$9.96 million as CP secured more orders during 1H2021 and the gradual return of the Group&rsquo s foreign labour workforce to operations.

 

Notably, revenue from IE surged 83% to S$13.72 million driven mainly by its 51%-owned Asian Sealand Offshore & Marine Pte Ltd (&ldquo ASOM&rdquo ) as a result of the re-opening of global business travel from the fourth quarter of 2020 that enabled ASOM to ramp up its business operations.

 

Specialising in asset integrity solutions, ASOM provides a wide range of on-site services such as repairs, engineering services, maintenances, decommissioning, among others. ASOM&rsquo s key customers are mainly operators and asset owners of Floating Production Storage and Offloading (&ldquo FPSO&rdquo ) vessels and Floating Storage and Offloading (&ldquo FSO&rdquo ) vessels.

 

Revenue contribution from ASOM has been growing progressively over the past few years and as at 30 June 2021, ASOM has an order book of S$6.0 million.

 

In addition, IE has been receiving more fabrication project enquiries due to a recent uptrend in outsourcing manpower-intensive projects by established shipyard customers in Singapore to neighbouring countries to reduce the dependency on foreign workers. 

 

The Group owns and operate a waterfront fabrication yard in Batam, Indonesia with a land size of 32 hectares. In total, the IE

business segment (including ASOM) has an order book of S$14.7 million as at 30 June 2021.

 

 

 

 

The Edge Singapore  Published on Wed, Jul 07, 2021 / 8:31 PM GMT+8

Beng Kuang Marine plans to raise $1.3 million by undergoing a placement exercise.
To be handled by SAC Capital, the company plans to place out up to 27 million new shares which will enlarge the company&rsquo s share capital by 16.7%. 
The placement shares are priced at 5  cents each, which is a discount of 9.1% off its last traded price on June 18.
&ldquo The company has decided to undertake the proposed placement in order to increase resources available to the company.&rdquo
&ldquo The directors are of the opinion that the proposed placement is beneficial for the group as this will improve its cash flow to support the working capital requirements of the group,&rdquo states the company.

On June 2, the company appointed Yong Jiunn Run as its new CEO. He was previously CIMB Singapore&rsquo s head of commercial banking.

Chua Meng Hua, the company&rsquo s previous CEO and managing director, has been redesignated as an executive director. For the year ended Dec 2020, the company reported earnings of $15.4 million, from a profit of $5,000 in the preceding year. Revenue in the same period was down 27% to $42.7 million.