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Elridge Energy Registers Profit of RM56.36 Million for FY2024

KUALA LUMPUR, 25 February 2025 – Elridge Energy Holdings Berhad (Elridge Energy Group), the Group today announced its financial results for the fourth quarter ended 31 December 2024 (“Q4 2024”).

For Q4 2024, the Group recorded a revenue of RM95.55 million and a profit before tax of RM13.79 million. The revenue and PBT were derived from customers based in Japan, Thailand, Singapore, Indonesia and Malaysia. Material costs constituted the most significant component in the Group’s sales cost, accounting for RM69.89 million or 92.36% of its total cost of sales, amounting to RM75.67 million for Q4 2024. Nevertheless, the profit after tax was RM9.63 million. No comparative figures for the preceding year’s corresponding quarter were available as no financial report is prepared for the comparative financial period concerned.

Elridge Energy: Revenue

From a cumulative perspective, the Group registered revenue of RM389.05 million for the financial year-to-date (“YTD Q4 2024”) and recorded a profit before tax of RM56.35million. After considering the RM283.48 million (92.22%) of its total cost of sales amounting to RM307.39 million for YTD Q4 2024, the Group achieved a profit after tax of RM41.17 million.

Revenue from the manufacturing of processed Palm Kernel Shells (PKS) remains a key driver at 85.16%, while the trading of Wood Pellets contributes 14.84% of the total revenue for YTD Q4 2024.

Oliver Yeo, Executive Director and Chief Executive Officer of Elridge Energy Holdings Berhad, said, “Our financial performance highlights the robust expansion of the biomass fuel industry and Elridge Energy’s strategic positioning in this evolving market. The increasing demand for sustainable energy solutions has driven strong uptake for our palm kernel shells (PKS) and wood pellets, particularly among international customers seeking reliable and high-quality biomass fuel sources.”

“Looking ahead, the Group anticipates sustained global demand for innovative and high-quality biomass fuel products, spurred by worldwide energy transition initiatives.”

According to the Independent Market Research report, the PKS industry in the Asia-Pacific region is projected to grow at a compound annual growth rate (CAGR) of 8.9%, expanding from an estimated USD308.6 million (RM1.4 billion) in 2024 to USD366.1 million (RM1.7 billion) by 2026. Similarly, the wood pellet industry in the region is expected to grow at a CAGR of 8.6%, increasing from USD10.6 billion (RM48.4 billion) in 2024 to USD12.5 billion (RM57.1 billion) by 2026.

Production capacity

“Recognising the importance of production capacity in securing long-term supply contracts, particularly from international customers, we are committed to expanding our PKS production capacity. Foreign customers and end-users often prioritise suppliers with the ability to meet large-scale volume requirements consistently. To strengthen ourposition in this competitive market, the Group is investing in the development of new manufacturing facilities in Pasir Gudang, Johor; Kuantan, Pahang; and Lahad Datu, Sabah.”

A total of RM68.14 million from the Group’s Initial Public Offering (IPO) proceeds has been allocated for these expansion initiatives. Each of the new facilities will be equipped with two PKS production lines, with an estimated combined annual production capacity of 240,000 metric tonnes per site once fully operational. This expansion will enable Elridge Energy to meet increasing demand, enhance supply chain efficiencies, and reinforce its market leadership in the renewable energy sector.

Yeo added, “With our solid financial performance, strategic expansion plans, and commitment to sustainable practices, Elridge Energy is well-positioned for long-term growth. We remain dedicated to leveraging our capabilities to support the global transition to renewable energy while delivering sustained value to our stakeholders.”

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