Beng Kuang net profit falls 41% to $12.5m

Profit before tax declined to $16.5m from $25.4m.

Beng Kuang Marine said its net profit fell to $12.5m from $21.2m a year earlier.

Beng Kuang said revenue fell 12.3% to S$98.16m, which it attributed mainly to timing delays and re-sequencing of offshore asset integrity projects in its infrastructure engineering division, adding that the underlying work scope remains intact for later recognition.

Gross profit slipped 6.0% to $36.4m, but gross margin rose to 37.1% from 34.6%, which the company linked to cost minimisation, productivity improvements, and its “asset-light” operating model.

Profit before tax declined to $16.5m from $25.4m, it said.

The company said net cash from operating activities was $26.6m, whilst finance costs fell 35.8% to $0.6m, adding it achieved full redemption of its corporate bonds by 31 Dec 2025.

Total equity rose 26.9% to $36.1m, and cash and cash equivalents increased to $37.4m as at 31 Dec 2025, it said.

Beng Kuang said Infrastructure Engineering remained the main contributor at 80.0% of revenue, adding that 76.22% of revenue from its asset integrity services and solutions business is recurring.

Deck equipment supply revenue fell to S$2.41m, but the group said it secured about $14.2m of new deck equipment contracts in FY 2025 and $7.8m of new shipbuilding contracts.

It added that other income dropped to $1.4m from $8.6m, reflecting the absence of the FY 2024 one-off gain and including a forex loss of $910,000 and a fair value loss of $170,000 in FY 2025.

The group also proposed a cash dividend of $0.006, equal to 23.5% of FY 2025 net profit attributable to shareholders.