Beng Kuang Marine unlocks shareholder value with new asset-light, service-centric model serving offshore and marine
In the decade from 2013 to 2022, Mainboard-listed Beng Kuang Marine suffered cumulative losses attributable to shareholders of more than $71 million. During this period, the company’s business was split into four segments, namely infrastructure engineering (IE), corrosion prevention (CP), supply and distribution, as well as shipping and others.
Established in the 1990s as a subcontractor providing corrosion prevention services to shipyards, Beng Kuang has since grown progressively to diversify into various aspects of the offshore and marine (O&M) industries.
The downturn of the offshore and marine industry from mid-2014 onwards impacted its performance for several years, and a key contributor to the losses was the shipping division, which was unable to contribute profit as shipping assets were under-utilised due to third-party operating issues, excessive downtime for repairs and cost challenges, says CEO Yong Jiunn Run. Following three straight years of losses, the Singapore Exchange (SGX) placed Beng Kuang on its watchlist in mid-2023.
After he joined the company in mid-2021, Yong set out to turn around the business and return it to profitability, which was achieved in FY2023. Today, after exiting the SGX watchlist in Oct 2024, Beng Kuang is firmly in the black with a net cash position and positioned for its next phase of growth.
Reporting positive earnings from FY2023 to FY2025 and peaking at $11.5 million for FY2024, Beng Kuang has continued its strong momentum into 2026. For the first half of this year, it reported close to 21% y-o-y growth in patmi to $3.5 million, with revenue of $55.7 million, which is around 10% y-o-y higher. It has also updated that its order book stood at around $71.5 million as at end-September. The current situation stands in contrast to FY2022, when the company reported its highest-ever loss of $21.8 million.