EA Technique executive director Datuk Mubarak Hussain Akhtar Husin
KUALA LUMPUR: EA Technique
(M) Bhd (EATech) is on track for its Practice Note 17 (PN17) status to be uplifted by the first quarter of 2025, following the successful implementation of the company’s regularisation plan in 2024 and consistent improvements in revenue and profitability.
Executive director Datuk Mubarak Hussain Akhtar Husin said the marine transportation and offshore storage company has already achieved significant milestones in improving its financial position and operational efficiency.
"The marine transportation and offshore storage industry is experiencing an upward trend, and EATech is well-positioned to capitalise on this environment.
"Our commitment is to build a stronger, more resilient company that continues to deliver value for shareholders,” he said in a statement today.
EATech was placed under PN17 after facing a decline in shareholders’ equity due to prolonged negotiations and setbacks caused by the COVID-19 pandemic.
The company also incurred variation costs related to its venture into the engineering, procurement, construction, installation, and commissioning sector, where it converted a tanker into a floating production storage and offloading facility. Since then, it has worked diligently to restructure its financial standing.
With the completion of its regularisation plan in mid-2024, EATech is now focused on achieving two consecutive profitable quarters, a key requirement for PN17 upliftment.
As of June 30, 2024, EATech reported revenue of RM61.81 million, with a gross profit margin of 41 per cent above the industry average.
The company also recorded a core profit of RM12.17 million for the first half of 2024, showcasing its ability to sustain profitable operations.
EATech said its financial performance was underpinned by a robust order book, with firm contracts valued at RM136.3 million and additional optional contracts worth RM281.2 million, providing the company earnings visibility for the coming years.
"Our utilisation rate currently stands at 97 per cent, and with major contracts in place, we are confident of achieving continued profitability. This will enable us to meet the requirements for exiting PN17,” Mubarak said.
In addition, he pointed out that EATech is actively pursuing new opportunities and is in the final stages of tendering for several high-value contracts, including a potential project with Petronas for the Nautica Tembikai FSO.
The company has also diversified its client base, recently registering as a vendor with Brunei Shell, opening new avenues for long-term contracts at higher charter rates.
"We aim to drive resilient future growth with a diversified portfolio and long-term partnerships,
especially with companies like Brunei Shell, where EATech now serves as an official vendor.
"We are also the only Malaysian company eligible to bid for jetty operation tenders,” he added. - Bernama
