Alam Maritim Navigates Choppy Waters: A Deep Dive into Q3 FY2025 Performance
Greetings, fellow Malaysian investors! Today, we’re casting our lines into the latest financial waters of ALAM MARITIM RESOURCES BERHAD (AMRB), a key player in Malaysia’s offshore energy support services. Their unaudited condensed consolidated financial statements for the financial period ended 31 March 2025 (Q3 FY2025) have just been released, and they paint a picture of significant turnaround and strategic progress, despite some recent quarterly fluctuations. While the latest quarter saw a dip in revenue, the year-to-date performance shines brightly, coupled with crucial approvals for their regularization plan and the resolution of long-standing litigation. Let’s dive in and see what’s truly beneath the surface.
Core Data Highlights
A Stronger Year-to-Date Performance
AMRB has demonstrated remarkable resilience and growth when looking at the cumulative nine-month period. The Group’s turnover surged, indicating robust activity over the past year. This impressive growth is largely attributed to stronger contributions from their Subsea Services segment, which has benefited significantly from newly awarded contracts.
For the financial period ended 31 March 2025, AMRB recorded a substantial 69.8% growth in revenue, reaching RM390.6 million, compared to RM230.0 million in the same period last year.
Profit before taxation also saw an impressive increase, rising to RM52.6 million from RM29.0 million in the preceding period, marking an 80.9% improvement.
Net profit for the period attributable to owners of the parent more than doubled to RM43.9 million (from RM23.9 million), translating into basic earnings per share of 2.87 Sen, up from 1.56 Sen.
Quarterly Dip: What Happened?
While the year-to-date figures are encouraging, the immediate preceding quarter (Q3 FY2025 vs Q2 FY2025) showed a contraction. This is primarily due to lower revenue from both the Offshore Support Vessels (OSV) and Subsea segments, which experienced fewer offshore work days during this specific period.
Current Quarter Ended 31 March 2025
Revenue: RM49.4 million
Profit Before Taxation: RM16.0 million
Net Profit: RM23.3 million
Basic EPS: 1.35 Sen
Compared to Preceding Quarter Ended 31 December 2024
Revenue: RM147.0 million (down 66.4%)
Profit Before Taxation: RM21.7 million (down 26.4%)
Net Profit: RM18.5 million (for 31 March 2024 quarter, not direct Q-on-Q for previous quarter)
Basic EPS: 1.21 Sen (for 31 March 2024 quarter)
For a clearer year-on-year quarterly perspective:
Current Quarter Ended 31 March 2025
Revenue: RM49.4 million
Profit Before Taxation: RM16.0 million
Net Profit: RM23.3 million
Basic EPS: 1.35 Sen
Compared to Same Quarter Last Year (31 March 2024)
Revenue: RM63.9 million (down 22.8%)
Profit Before Taxation: RM23.4 million (down 31.7%)
Net Profit: RM18.5 million (up 26.0%)
Basic EPS: 1.21 Sen (up 11.6%)
Segmental Deep Dive
A closer look at the segments reveals the dynamics at play for the nine-month period:
| Segment | Revenue (9M FY2025) | Revenue (9M FY2024) | Revenue Variance | PBT (9M FY2025) | PBT (9M FY2024) | PBT Variance |
|---|---|---|---|---|---|---|
| Offshore Support Vessels (OSV) | RM57.4 million | RM75.8 million | (24.3%) decrease | RM29.9 million | RM22.5 million | 33.2% increase |
| Subsea Services | RM331.8 million | RM151.7 million | >100% increase | RM28.2 million | RM8.7 million | >100% increase |
The OSV segment’s revenue declined due to lower daily charter rates and reduced vessel utilization. However, its profit before taxation (PBT) increased significantly by 33.2%, primarily driven by a substantial reversal of impairment on investment in jointly controlled entities. This non-cash gain cushioned the impact of lower operational revenue.
Meanwhile, the Subsea Services segment was the star performer, with both revenue and PBT growing by over 100%. This surge is a direct result of stronger contributions from a newly awarded subsea contract, highlighting the strategic importance of this segment to AMRB’s overall performance.
Strengthening the Balance Sheet and Cash Position
AMRB’s financial health shows a mixed but improving picture. While accumulated losses increased and total equity remains negative (RM66.4 million as at 31 March 2025, from RM25.5 million as at 30 June 2024), there are positive movements, especially in cash flow management and debt reduction.
Total borrowings have been reduced to RM78.2 million from RM88.4 million at the end of the last financial year. More impressively, the Group achieved a significant turnaround in its cash flow. Net cash generated from operating activities soared to RM41.0 million for the nine-month period (compared to just RM2.7 million in the same period last year). This strong operational cash generation, combined with healthy investing activities, led to a net increase in cash and cash equivalents of RM70.2 million, a stark contrast to the RM20.5 million decrease in the previous comparable period. As a result, cash and cash equivalents at the end of the period stood at a robust RM92.0 million, a substantial increase from RM23.1 million a year ago.
Risk and Prospect Analysis
Navigating the O&G Landscape
AMRB’s prospects remain closely tied to the operational expenditure of major oil and gas companies, particularly in production-related activities. The PETRONAS Activity Outlook for 2025–2027 suggests a cautiously optimistic approach, with a focus on prudent new capital projects. This outlook is expected to sustain demand for offshore support and subsea services, especially in Inspection, Repair, and Maintenance (IRM), which is a core offering of AMRB’s Subsea segment.
However, the Group is not without its challenges. The performance is susceptible to seasonal and cyclical factors, such as adverse weather conditions like monsoon seasons, which can lead to increased vessel downtime and off-hires. Despite this, AMRB notes that their chartered vessels are made available regardless of weather conditions, suggesting a commitment to operational continuity.
Strategic Moves and Future Outlook
The Board of Directors has reiterated its commitment to prudently overseeing and executing effective strategies to enhance shareholder value. This commitment is particularly pertinent given the significant developments that have unfolded recently.
Crucially, Bursa Securities has approved AMRB’s Proposed Regularisation Plan on 20 May 2025. This is a monumental step for the company, as it addresses its PN17 status. The plan includes a Proposed Rights Issue with Warrants and a Proposed Settlement, which are vital for strengthening the company’s financial position and resolving its financial distress. This approval provides a clear pathway for AMRB to regularize its financial condition and move forward.
Adding to the positive momentum, AMRB has also successfully reached an amicable settlement with Vestigo Petroleum Sdn. Bhd., leading to the withdrawal of all pending legal proceedings. This resolution eliminates a significant litigation risk that had been hanging over the company, allowing management to focus fully on operational and strategic growth.
Summary and
ALAM MARITIM RESOURCES BERHAD’s Q3 FY2025 report reveals a company on a path of recovery and strategic repositioning. While the latest quarter saw a temporary dip in revenue, the strong year-to-date performance, significant improvement in cash flow, and successful debt reduction efforts highlight a positive financial trajectory. The approval of the regularization plan by Bursa Securities and the resolution of key litigation are game-changers, paving the way for greater stability and future growth. These strategic milestones, coupled with a sustained demand for IRM services in the O&G sector, position AMRB to potentially build on this momentum.
Key points to monitor going forward:
- The successful execution and completion of the Proposed Regularisation Plan.
- Sustained demand and charter rates in the offshore support and subsea services market.
- Effective management of operational costs and vessel utilization.
- Impact of seasonal weather conditions on operational uptime.
- Continued prudent financial management to improve equity position.
Final Thoughts
The journey for ALAM MARITIM has been challenging, but this latest report indicates that the company is actively addressing its past hurdles and strategically positioning itself for the future. The impressive turnaround in cash flow and the clearing of significant regulatory and legal obstacles are strong signals of management’s commitment to steering the company towards a healthier financial standing.
What are your thoughts on AMRB’s latest performance and their strategic initiatives? Do you think the company can maintain this growth momentum and successfully emerge from its PN17 status in the coming years? Share your views in the comments below!
