Rising demand for sustainable biomass products to drive Elridge Energy's growth prospect in FY2025
As the group was only listed on the ACE Market of Bursa Malaysia in August 2024, no year-on-year (yoy) comparative figures from the previous financial year is available.
Palm kernel shells (PKS) remain the cornerstone of the group's operations by contributing RM95.81 mil or 87.36% of total revenue while the remaining RM13.87 mil was derived from the trading and manufacturing of wood pellets.
'Our 1Q FY2025 performance reflects a strong and growing demand for sustainable biomass fuel products in international markets,' commented Elridge Energy's executive director and CEO Oliver Yeo.
'We are pleased to maintain our momentum post-listing and deliver healthy earnings growth in line with our strategic direction.'
According to Coherent Market Insights, the PKS industry in Asia-Pacific is expected to grow at a CAGR (compound annual growth rate) of 8.9% from US$308.6 mil (RM1.4 bil) in 2024 to US$366.1 mil (RM1.7 bil) by 2026.
The wood pellet market in the region is also forecast to expand at a CAGR of 8.6% to reach USD$12.5 bil (RM57.1 bil) in 2026 from US$10.6 bil (RM48.4 bil) in 2024.
'To support this growing market, we're executing our expansion plan with the development of new manufacturing sites in Pasir Gudang (Johor), Kuantan (Pahang) and Lahad Datu (Sabah),' revealed Yeo.
'These facilities will each house two PKS production lines with a combined annual output of 240,000 metric tonnes per site. The capacity expansion will enhance our ability to secure long-term export contracts and reinforce our position in the regional biomass supply chain.'
To-date, a total of RM68.14 mil from the group's initial public offering (IPO) proceeds has been allocated to these projects.
The investments form part of Elridge Energy's long-term strategy to capitalise on rising global demand for biomass fuels and to contribute to decarbonisation efforts in energy and industrial sectors.
'With a focused expansion strategy, a solid financial footing and rising demand from international markets, the group remains well-positioned to deliver sustained value to our shareholders and support the global shift towards renewable energy,' added Yeo.
At 4.56pm, Elridge Energy was unchanged at 59.5 sen with 2.38 million shares traded, thus valuing the company at RM1.19 bil. – May 27, 2025
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