Hot Stock EA Technique rises 2.80% on solid 1Q earnings

by **Cals** Tue 24 May 2016, 01:48

Hot Stock

[size=28]EA Technique rises 2.80% on solid 1Q earnings

By Surin Murugiah / theedgemarkets.com | May 23, 2016 : 9:42 AM MYT

KUALA LUMPUR (May 23): Shares of EA Technique (M) Bhd rose 2.80% in early trade after its net profit for the first quarter ended March 31, 2015 (1QFY16) increased by 3.4 times to RM25.19 million from RM7.37 million in the corresponding quarter a year ago.

At 9.22am, EA Technique rose 3 sen to RM1.10 with 37,700 shares done.

For the quarter under review, its revenue also grew by 69.9% to RM123.56 million from RM72.73 million in 1QFY15.

According to the bourse filing, the increase in performance was mainly due to recognition of revenue from engineering, procurement, construction, installation and commissioning project that was secured at the end of 2014 and delivery of floating, storage and offloading vessel Nautica Tembikai to an oil field in June 2015.

It added that the Group had recorded unrealised forex translation gain for the period under review amounting to RM17.2 million.

On the current year's prospect, the Group is expected to acquire two oil tankers in the second quarter of 2016 (2Q 2016). Two harbor tugs will be delivered in 2Q 2016 and another two harbor tugboats is expected to be delivered in 3Q 2016 for a client in which the contract has been secured.

"The expansion of the company's fleet of marine vessels is expected to enhance the company's revenue and profitability," it said.

As of March 31, 2016, the Group's order book was approximately RM1.2 billion with additional RM350 million potential for extension period.
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