The group saw higher revenue for 2HFY2024, driven by strong recovery in its project services segment in Singapore and Malaysia after an orderbook replenishment in 1HFY2024.

Nordic Group has reported earnings of $17.5 million for the FY2024 ended Dec 31, 2024, up 10% y-o-y. Earnings for the 2HFY2024 came in 53% y-o-y higher at $9.0 million.

Earnings per share for FY2024 came in at 4.4 cents per share, up 10% y-o-y. 

Revenue for FY2024 was 1% y-o-y lower at $158.4 million, but grew 15% y-o-y in 2HFY2024 to $82.2 million.

The group, which provides project and maintenance services to the marine, offshore oil and gas, petrochemical industries among others, says that the higher revenue for 2HFY2024 was driven by strong recovery in project services in Singapore and Malaysia. This follows the orderbook replenishment in 1HFY2024.

The group’s revenue for maintenance services remained relatively the same y-o-y. 

Overall, this revenue growth translated into a 33% growth in gross profits and a 3.1 percentage points (ppts) increase in gross profit margin for 2HFY2024. 

Other income and gains dropped by 57% y-o-y to around $1.8 million in 2HFY2024, mainly due to a one off write-back of contingent liabilities arising from the acquisition of Starburst Group and property disposal gains recorded in 2HFY2023. 

The foreign exchange gains of $1.0 million in 2HFY2024 and increase in interest income of $0.2 million partially offset this decrease.

Distribution costs increased 72% y-o-y in 2HFy2024 due to higher overall salary costs. Meanwhile, effective income tax dropped due to the utilisation of merger & acquisition allowance, unutilised capital allowances carried forward and over recognition of income tax expense. 

The group’s 1% y-o-y decline in revenue was due to the completion of certain project and the delay in other projects in Singapore and Malaysia. This was offset by steady growth in maintenance services throughout the year and a strong rebound in project services in 2HFY2024, following the successful orderbook replenishment in 1HFY2024.

The board is recommending a final dividend of 0.8987 cents per ordinary share. Together with the interim dividend of 0.8526 cent already paid, the group’s total dividend for FY2024 sums up to 1.7513 cents, equivalent to a dividend payout ratio of 40% and a dividend yield of 5%.

The group holds an orderbook amounting to $201.6 million as at Dec 31, 2024, and has prioritised the acquisition of more maintenance contracts to increase the recurring portion of its revenue which is reflected in its maintenance services business which contributes 58% to the orderbook.

Shares in Nordic Group Mr7 closed flat at 33 cents on Feb 27.