EA Technique rises 6.3% after Edge FD report

by **Cals** Tue 22 Mar 2016, 01:37

EA Technique rises 6.3% after Edge FD report

By Yimie Yong / theedgemarkets.com | March 21, 2016 : 5:22 PM MYT

KUALA LUMPUR (March 21): Shares of E.A Technique (M) Bhd rose as much as 7 sen or 6.31% after its managing director was reported by today's The Edge Financial Dailyas saying the group’s impressive earnings growth is sustainable even if crude oil prices stay low.

At 4.39 pm, the counter was traded at RM1.18, with some 1.43 million shares changing hands, for a market capitalisation of RM594.72 million.

EA Technique managing director Datuk Abdul Hak Md Amin told the daily in an interview that the company’s earnings visibility is good and its vessel utilisation rate is 90% to 95%.

He said any rate above 65% is considered good in the shipping industry.

Abdul Hak also pointed out that the company is less affected by the downturn in the oil and gas industry, because its clients are mainly in the mid- and downstream segments, such as petrochemical companies and refineries.

The company has an orderbook of RM1.6 billion, which will last until 2025.

Its net profit swelled more than four times to RM11.15 million for the fourth quarter ended Dec 31, 2015 (4QFY15), against RM2.67 million in the previous corresponding quarter. Quarterly revenue ballooned to RM147.8 million, from RM41.13 million a year ago.

The big leap in quarterly earnings bumped up EA Tech’s annual net profit to RM37.34 million for FY15, more than double the RM14.23 million posted in the previous year; while earnings per share jumped to 7.41 sen, from 3.59 sen