Bhagwan Marine’s Expansion Faces Macroeconomic Uncertainties Despite Strong FY25
Bhagwan Marine Limited has delivered a strong first year as an ASX-listed company with record net revenue and EBITDA growth, alongside its inaugural dividend declaration. The company is advancing growth in offshore energy, subsea, ports, and defence sectors while investing in innovation and fleet expansion.
- Record net revenue of AUD 283.0 million, up 5% from FY24
- EBITDA increased 23% to AUD 50.9 million
- Declared inaugural fully franked dividend of 0.5 cents per share
- Expanded fleet with Coral Knight acquisition and secured six-year Port of Melbourne contract extension
- Progress in emerging sectors – decommissioning, offshore wind, and defence
Strong Financial Performance in First ASX Year
Bhagwan Marine Limited marked its debut year as a publicly listed company with robust financial results for FY25. The company reported record net revenue of AUD 283.0 million, a 5% increase over FY24, and a 23% rise in EBITDA to AUD 50.9 million. This performance was underpinned by growth in core business activities and strategic investments, reflecting Bhagwan’s expanding footprint across Australia’s marine services sector.
Alongside these gains, Bhagwan declared its inaugural fully franked dividend of 0.5 cents per share, signaling confidence in its cash flow generation and financial stability. Net cash from operations rose 23% to AUD 35.8 million, supported by disciplined capital management and operational efficiencies.
Fleet Expansion and Contract Wins Drive Growth
Bhagwan’s growth was bolstered by the acquisition of the Coral Knight, a large anchor handling vessel that enables the company to compete in the larger offshore vessel market. This strategic move complements a six-year contract extension with the Port of Melbourne, one of Australia’s busiest ports, securing a steady revenue stream and reinforcing Bhagwan’s position in the ports and inshore segment.
The company also completed a significant decommissioning project at Thevenard Island, establishing a foothold in this emerging sector. Bhagwan’s operations now span offshore energy, subsea, ports and inshore, and defence markets, with ongoing projects supporting offshore wind farms, LNG infrastructure, and government contracts.
Innovation and Safety at the Forefront
Bhagwan continues to invest in marine innovation, including hybrid-powered vessels and remotely operated vessels, aiming to reduce emissions, lower operational costs, and enhance safety. The company reported a zero lost time injury frequency rate (LTIFR) for FY25, improving from 0.90 the previous year, despite an increase in total recordable injury frequency rate (TRIFR) which prompted implementation of a Safety Improvement Plan.
Operational excellence is further supported by a highly skilled workforce of approximately 950 marine personnel and 138 corporate staff, with a reputation for reliability and safety across its diverse fleet of around 100 vessels.
Outlook and Strategic Focus
Management highlighted positive medium-term fundamentals for vessel pricing and utilisation, driven by maturing offshore oil and gas decommissioning, growth in offshore wind, and increased government defence spending. However, they remain cautious about ongoing macroeconomic uncertainties that could impact near-term market conditions.
Bhagwan plans to accelerate market penetration, expand operational capacity, and pursue accretive acquisitions. Continued investment in innovation and operational efficiencies aims to support margin expansion and free cash flow generation in FY26 and beyond.
With a strengthened balance sheet; net financial debt reduced to AUD 5.3 million excluding leases; and disciplined capital expenditure focused on fleet quality and capability, Bhagwan is positioning itself to capture growth opportunities across Australia’s evolving marine services landscape.
Bottom Line?
Bhagwan’s strong FY25 foundation sets the stage for growth, but investors will watch closely how it navigates macroeconomic headwinds and margin pressures ahead.
Questions in the middle?
- How will Bhagwan balance fleet expansion with margin improvement amid inflationary pressures?
- What impact will macroeconomic uncertainties have on vessel utilisation and pricing in FY26?
- Can Bhagwan successfully leverage its position to capture emerging defence sector contracts?