LA Private

Bhagwan makes waves with first-half guidance lift

Bhagwan Marine (ASX:BWN) has projected a significant rise in earnings for the first half of FY25, as well as strong tendering activity, with pro-forma EBITDA expected to reach between $26m and $28m. This represents an increase of 26% to 36% compared to the prior corresponding period’s $20.6m.

The company attributes this growth to robust performance across its sectors and the completion of a large-scale oil and gas decommissioning project in the first quarter of FY25.

Bhagwan is one of the largest marine vessel operators and service providers in Australia, with a fleet of over 95, including dive support vessels, tug boats, multi-cats, utility vessels, barges and crew transfer boats.

Decommissioning milestone

Bhagwan Marine completed its largest decommissioning project to date in the first quarter of FY25. The project involved dismantling and removing ageing subsea infrastructure from a major oil and gas field in the North West Shelf region of Australia. The decommissioning effort, valued at over $100m, included plugging abandoned wells, removing pipelines, and restoring the seabed to comply with stringent environmental regulations.

This complex project required over 800,000 offshore working hours and involved up to 180 personnel.

Managing Director Loui Kannikoski commented, “This project demonstrates our ability to lead high-value, environmentally sensitive operations. It positions us as a trusted partner for future decommissioning opportunities in oil and gas, as well as emerging industries like offshore wind.”

Bhagwan Marine is scheduled to release its financial results for the six months ending 31 December 2024 in February.

Shares closed 25.23% higher at $0.695 on Friday.