Latest news with #RM95.81
Focus Malaysia
10 hours ago
- Business
- Focus Malaysia
Rising demand for sustainable biomass products to drive Elridge Energy's growth prospect in FY2025
BIOENERGY-BASED Elridge Energy Holdings Bhd has begun its 1Q FY2025 ended March 31, 2025 with a net profit of RM13.58 mil on the back of RM109.67 mil in revenue that were mainly contributed by customers based in Japan, Indonesia and Malaysia. As the group was only listed on the ACE Market of Bursa Malaysia in August 2024, no year-on-year (yoy) comparative figures from the previous financial year is available. Palm kernel shells (PKS) remain the cornerstone of the group's operations by contributing RM95.81 mil or 87.36% of total revenue while the remaining RM13.87 mil was derived from the trading and manufacturing of wood pellets. 'Our 1Q FY2025 performance reflects a strong and growing demand for sustainable biomass fuel products in international markets,' commented Elridge Energy's executive director and CEO Oliver Yeo. 'We are pleased to maintain our momentum post-listing and deliver healthy earnings growth in line with our strategic direction.' According to Coherent Market Insights, the PKS industry in Asia-Pacific is expected to grow at a CAGR (compound annual growth rate) of 8.9% from US$308.6 mil (RM1.4 bil) in 2024 to US$366.1 mil (RM1.7 bil) by 2026. The wood pellet market in the region is also forecast to expand at a CAGR of 8.6% to reach USD$12.5 bil (RM57.1 bil) in 2026 from US$10.6 bil (RM48.4 bil) in 2024. 'To support this growing market, we're executing our expansion plan with the development of new manufacturing sites in Pasir Gudang (Johor), Kuantan (Pahang) and Lahad Datu (Sabah),' revealed Yeo. 'These facilities will each house two PKS production lines with a combined annual output of 240,000 metric tonnes per site. The capacity expansion will enhance our ability to secure long-term export contracts and reinforce our position in the regional biomass supply chain.' To-date, a total of RM68.14 mil from the group's initial public offering (IPO) proceeds has been allocated to these projects. The investments form part of Elridge Energy's long-term strategy to capitalise on rising global demand for biomass fuels and to contribute to decarbonisation efforts in energy and industrial sectors. 'With a focused expansion strategy, a solid financial footing and rising demand from international markets, the group remains well-positioned to deliver sustained value to our shareholders and support the global shift towards renewable energy,' added Yeo. At 4.56pm, Elridge Energy was unchanged at 59.5 sen with 2.38 million shares traded, thus valuing the company at RM1.19 bil. – May 27, 2025
Focus Malaysia
18 hours ago
- Business
- Focus Malaysia
Elridge Energy scales up regional biomass supply chain as FY2025 momentum solidifies
BIOENERGY-based Elridge Energy Holdings Bhd has kickstarted its FY2025 ending Dec 31, 2025 on a strong footing by building on the momentum from its successful listing on the ACE Market on Aug 22 last year. With rising global demand for sustainable fuel solutions, the group remains committed to scaling its manufacturing footprint, expanding capacity and strengthening its presence across the regional biomass supply chain, according to its executive director and CEO Oliver Yeo. 'Moving forward, we remain focused on disciplined growth, operational scalability and ESG (environmental, social and governance) integration,' he told shareholders at Elridge Energy's inaugural annual general meeting (AGM) in Kuala Lumpur today (June 23). 'With strong industry fundamentals and a clear roadmap, the group is confident of sustaining its upward trajectory in the biomass and renewable energy space.' The group has posted net profit of RM13.58 mil on the back of a revenue of RM109.67 mil for its 1Q FY2025 ended March 31, 2025 primarily driven by demand from Japan, Indonesia, and Malaysia. Palm Kernel Shells (PKS) remained the cornerstone of the group's operations by contributing RM95.81 mil or 87.36% of Elridge Energy's 1Q FY2025 revenue while RM13.87 mil or 12.64% was generated from wood pellets. To support this growth strategy, Elridge Energy is investing RM68.14 mi from its IPO (initial public offering) proceeds to develop new PKS production facilities in Kuantan (Pahang), Pasir Gudang (Johor) and Lahad Datu (Sabah). Each facility is designed to house two PKS production lines with a combined annual capacity of 240,000 metric tonnes respectively, thus resulting in total additional capacity of 720,000 metric tonnes annually. All sites are on track for completion by the group's FY2026. As a whole, its gross profit improved to RM81.66 mil from RM45.97 mil while the group's net profit surged to RM41.17 mil from RM23.56 mil. Again, the improved results reflect robust demand for biomass fuel products and continued operational efficiency gains. PKS contributed 85.16% of Elridge Energy's total revenue for FY2024 while the trading and manufacturing of wood pellets accounted for the remaining 14.84%. While no dividends were declared for FY2024, its board has expressed its intention to reward shareholders in the future, subject to the group's financial performance, capital requirements and prevailing market conditions. All 13 resolutions tabled at Elridge Energy's AGM were duly approved by shareholders. These included the re-election of all seven directors who retired under the company's constitution, the approval of directors' fees and benefits for the current and upcoming financial periods, the re-appointment of HLB Ler Lum Chew as external auditors, and the general mandate for authority to issue shares according to the Companies Act 2016. At the close of today's (June 23) trading, Elridge Energy was unchanged at 59.5 sen with 787,100 shares traded, thus valuing the company at RM1.19 bil. – June 23, 2025
