Owned Vessel revenues were higher in 1H2025 compared to 1H2024 despite lower utilization due to better yielding vessels in operation in 1H2025.

Owned Vessel Division

Although the number of vessels has not changed, fleet composition has improved with 2 additional PSVs in operation in 1H2025 as well as 3 newly delivered HLBs which 2 units commenced work in April 2025 and 1 unit in July 2025. With 4 additional units of higher yielding vessels in operation compared to last year, gross margins from the Owned Vessels Division expanded from 29.6% in 1H2024 to 39.1% in 1H2025. This resulted in a 54.4%YOY jump in Gross Profit growth for the Owned Vessel Division to US$12.4million, despite a fall in utilization from 63.7% in FY2024 to 57.9% in 1H2025.

Despite a slower first half of the year which caused a dip in utilization, the Company reaped the benefit of improving average charter rates from a higher number of operational vessels at the higher value segment of the fleet. Owned Vessel Expenses increased by 22%QOQ from 1Q2025 to 2Q2025 due to an increase of fleet as well as Operational costs.

Chartering Division and Other Services

Chartering revenues experienced a sharp decline, as several vessels ended a contract which has not been renewed. Gross Profit from Chartering fell from US$0.7million in 1H2024 to US$0.2million in 1H2025.

Gross Profit from Other Services fell to US$1.4million (-11.5%YOY) in1H2025 in line with the lower vessel utilization for the period compared to last year.

Direct Expenses and Gross Profit

Total Owned Vessel Direct Expenses rose only slightly by 1.3%YOY to US$19.4million for 1H2025. The largest increase came from Fuel Bunker costs which rose to US$1.4million (+46.1%YOY) due to the mobilization of vessels to overseas contracts. All other costs were lower except for Fleet Maintenance which rose 2.2%YOY to US$4.1million in 1H2025.

On a quarterly basis, there were higher operational and maintenance costs in 2Q2025 compared to 1Q2025 due to the preparation and mobilization of a mid-tier vessel for a long-term contract in the Middle East.

Indirect Expenses and Operating Profit

Total Indirect Expense rose by 11.0%YOY to US$5.1million in 1H2025. The largest increase came from salary and employee benefits which rose by 10.0%YOY and 16.9%YOY to US$3.8million and US$0.2million respectively. With the improvement in business conditions and a wider geographic spread of operations, there was an increase in the number of employees in 2025 compared to last year. Telecommunications and marketing costs also rose with more international projects and higher costs of bid bond fees in the tender process.

Due to good cost control, Operating Profit for 1H2025 jumped by 55.8% to US$8.9million from US$5.7million in the previous year.

Other Income, Expenses and Net Attributable Profit

As the Company refinanced the newly acquired vessels from the past year, interest expenses rose to US$1million for 1H2025, while interest income also doubled to US$0.3million due to strong operational cash flow.

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