Bhagwan Marine’s strong operating performance has delivered record revenue and earnings for H1 FY2025. Pic: Getty Images
Bhagwan Marine’s record revenue proves it’s taking the right tack
Energy
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- Bhagwan Marine delivers record revenue and EBITDA of $154.1m and $27.3m for H1 FY2025
- Results reflect strong performance across its diverse and growing portfolio
- Strong ongoing demand from NT energy companies expected to help drive strong FY2025 outlook
Special Report: Strong performance across its diversified core businesses has allowed marine services provider Bhagwan Marine to deliver a record H1 revenue and earnings for the 2025 financial year.
The company boasted a 41% increase in revenue for the half year to $154.1m while pro forma EBITDA hit a record of $27.3m, up 32% from the $20.6m it made in the previous corresponding quarter.
Net profit is up a massive 102% to $8.8m while net debt was slashed from $81.4m to $11.5m, thanks to funds allocated from its $80m initial public offering priced at 63c per share in July 2024.
Bhagwan Marine (ASX:BWN) managing director Loui Kannikoski said the results reflect the strength of the company’s operations and its ability to deliver outstanding service across a diverse and growing portfolio.
“A particular highlight was the timely commercial completion of the oil and gas decommissioning project in 2Q25,” he added.
“This project was delivered to a high standard and safely, with more than 850,000 offshore working hours completed without a single lost-time injury. Its success was reinforced by highly positive client feedback at close-out.
“We continue to progress expansion into new growth sectors, strengthening our offshore wind capabilities and positioning for increased defence, maintenance, and large vessel opportunities. Innovation remains central to our strategy, and we are advancing our service offering with remotely operated and hybrid-powered technologies.
“I want to sincerely thank our team for their dedication and expertise – our success is a direct result of Bhagwan’s strong culture of safety, innovation, and operational excellence.
“We continue to strengthen our leadership team, including the impending appointment of a chief operating officer. We are well-positioned to drive continued growth in the second half of FY25 and beyond.”
Strategy and outlook
The company, which pivoted from being a family-owned crayfishing business into providing marine oil and gas services in 2000, has grown rapidly from the single vessel it started off with into a major player with fleet of about 100 owned and leased vessels operating across Australia.
It is determined to keep growing with plans to capitalise on opportunities in the following growth markets:
- A substantial long-term pipeline of offshore oil and gas decommissioning projects
- The Australian government’s designation of six priority offshore wind zones
- Increased investment in defence, port facility upgrades and infrastructure expansion
- Ageing offshore assets and marine/port infrastructure requiring inspection, repair and maintenance
- A higher company profile to drive market share, particularly in the larger vessel market
BWN is also seeking value-accretive acquisitions that enhance its capabilities and expand its geographic presence within its core business and growth sectors.
Additionally, the company plans to modernise its fleet with more efficient and sustainable technologies while optimising its contract mix by securing longer-term contracts that ensure higher vessel utilisation and stable revenue streams.
Its outlook for FY2025 remains strong with activity levels and demand expected to be driven by ongoing demand from major energy companies in the Northern Territory, diversification opportunities within the subsea sector, expansion and diversification opportunities within the larger vessel market in northern Australia and increasing defence sector services enquiries at the Henderson Marine Precinct.
This article was developed in collaboration with Bhagwan Marine, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
