Bhagwan Marine (BWN) H2 2024 earnings summary

Executive summary

• Achieved record FY 2024 revenue of AUD 303.1 million, up 79% year-over-year and 4% above prospectus forecast.

• Pro forma EBITDA reached AUD 41.3 million, a 14% increase from FY23 and 6% above forecast.

• Successfully completed a large decommissioning project, the largest by an Australian-owned provider, transitioning to demobilization phase.

• IPO in July 2024 raised AUD 80 million, enabling significant deleveraging and positioning for growth in decommissioning, offshore wind, and defense.

• Maintained a strong safety record with improved injury frequency rates and over 800,000 offshore hours worked without a lost time injury.

Financial highlights

• Net revenue (excluding pass-through) up 59% year-over-year and 1% above forecast.

• Net cash from operations was AUD 29 million, 5% ahead of forecast.

• Free cash flow totaled AUD 17 million, 1% above prospectus forecast.

• Pro forma net debt reduced to AUD 12.4 million as of June 2024, following substantial repayment with IPO proceeds.

• Gross profit margin at 26% (down from 34% in FY23); EBITDA margin at 15.4%.

Outlook and guidance

• No formal guidance for FY 2025 provided; updates to be given at AGM and half-year.

• Focus on strengthening core business, expanding into decommissioning, offshore wind, and defense sectors, and disciplined M&A.

• CapEx expected to rise in FY 2025 due to dry docking and cost inflation.

• Strong pipeline of decommissioning and offshore wind projects, with government support and ongoing defense contracts.

• Longer-term contracts targeted to ensure higher vessel utilization and stable revenue.