KUALA LUMPUR: Avangaad Bhd, the marine coordinator, operator, and partner (COP), marks a pivotal milestone as the group’s first full year of normalised operations following the successful completion of its Regularisation Plan and subsequent upliftment from PN17 status on Feb. 20, 2025.
For the financial year ended Dec 31, 2025 (FY25), revenue rose 4.0% to RM127.6 million, driven by improved charter pricing within the fast crew boat fleet.
Profit before tax (PBT) came in at RM29.0 million, while FY24 PBT of RM211.2 million was materially affected by a one-off, non-cash RM171.1 million debt waiver gain, making year-on-year comparison not indicative of operational performance.
This closing represents the group’s true baseline: a profitable, cash-generating marine services business functioning under normal conditions for the first time in several years.
Executive director Datuk Wira Mubarak Hussain Akhtar Husin said two years ago, the group carried over RM122.0 million in accumulated losses and was navigating a restructuring process.
“Today, we have positive retained earnings, RM46.0 million in cash, and net gearing of 8.5%. We have strengthened our balance sheet through operational performance rather than external financing.
“I am confident that our resilience, anchored by recurring charter contracts, continues to support our operations.
“Generating RM65.0 million in operating cash flow this year highlights the health of the underlying business. Margin improvement remains a focus.
“While we continue to optimise margins, a solid foundation and a strong order book provide clear visibility into 2027.”
“Looking ahead to 2026, we remain committed to being the marine COP for our clients: driving operational consistency, disciplined execution, and long-term, value-focused client relationships that create enduring value,” he said.
The standout feature of FY25 was the group’s ability to convert profitability into cash.
Operating cash flow surged to RM65.1 million, reversing the RM54.4 million outflow recorded in FY2024.
This strong cash generation supported a free cash flow of RM43.7 million, enabling the group to deleverage significantly.
Total borrowings were reduced by 15.7% to RM75.0 million, while net gearing improved to a healthy 8.5%, down from 23.9% a year earlier.
The group has delivered a remarkable turnaround, with retained earnings rising from RM122.3 million in accumulated losses at the start of 2024 to a positive RM76.7 million by FY25—representing a total recovery of nearly RM199.0 million in just two years.
Momentum in the business remains robust. Built on strong operational resilience and a pipeline of secured contracts, Avangaad booked approximately RM137.0 million in new and extended contracts in FY25, exceeding its annual revenue run rate.
Notable contract awards and extensions secured during the year included Northport (Malaysia) Bhd contracts totalling RM66.8 million, which strengthened the group’s port marine services division and further supported diversification beyond marine services and away from oil and gas.
As of Dec 31, 2025, Avangaad’s total order book stood at RM423.3 million, comprising RM154.7 million in firm contracts and RM268.6 million in extension options.
