Bhagwan Marine boosts earnings

Bhagwan Marine has reported strong growth in half-year revenue and earnings, in line with guidance released in December, and presented a positive outlook for the rest of the year.

Revenue for the marine services company jumped 41 per cent to a record $154.1 million for the half-year to December 2024.

Its pro-forma EBITDA was up 32 per cent to $27.3 million, which was also a record and around the middle of its guidance range of $26m to $28m.

Net profit after tax doubled to $8.8 million.

The results failed to excite the market, with Bhagwan’s share price sliding 6.4 per cent this morning to 58.5 cents.

In December after the earnings guidance, the stock had jumped to 69 cents, close to its all-time high, but subsequently drifted lower.

Chief executive Loui Kannikoski said the result reflected strong demand for Bhagwan’s services, primarily from the oil and gas sector, and disciplined execution by the company.

He said a particular highlight was completion of the company’s first major oil and gas decommissioning project, with 850,000 offshore working hours completed without a single lost-time injury.

The company is looking to diversify into new areas including offshore wind farms and defence.

Bhagwan said its outlook for the second half of FY25 remained strong, with ongoing demand from major energy companies in the Northern Territory and diversification opportunities within the subsea sector.