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"On your way to greatness, you will fall, but like a Phoenix rising from the ashes, you too shall rise again."

In the vast tapestry of corporate chronicles, very few narratives mirror the mythical story of the Phoenix quite like Eatech's. This company, once regarded as the crown jewel of its industry, saw its luster wane and crumble, relegating it to the dire straits of the PN17 status. But as the old adage assures, "it's always darkest before the dawn." And for Eatech, dawn has broken with the promise of a golden horizon.

As an avid follower of Eatech's journey, it's my third time penning down the undulating course this company has charted. To the keen market observer and potential investor, Eatech's narrative has all the trappings of a corporate thriller - unexpected challenges, unforeseen pitfalls, and most crucially, an indomitable spirit to rise from the ashes.

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The Great Descent and The White Knight's Surprise

The trajectory of Eatech has been nothing short of a thrilling rollercoaster ride. From facing consistent losses to the eventual PN17 classification, the company seemed trapped in a quagmire. Enter the White Knight, a beacon of hope initially presumed to bring about an expedited financial rectification. Yet, unforeseen complexities surrounding Tan Sri Abdul Rashid Abdul Manaf threw a wrench in the works, compelling the company to withdraw the Regulation Plan submitted to Bursa Malaysia. However, the phoenix refuses to remain subdued.

the story of Eatech began to unfold in a surprising direction. Once a proud force, Eatech found themselves navigating through choppy financial waters, leading them to craft a lifeboat plan they hoped would stabilize the ship - a regularisation proposal to the stock exchange. However, fate took another twist. They had to untangle themselves from a partnership with Eco Offshore Services and two influential figures. As whispers in the market told tales of what could've been a game-changing alliance, where Tan Sri Abdul Rashid, a co-founder of EOSSB, might have held the reins of Eatech with a commanding 53% stake. The clock ticked louder as the company raced against time, given an extended deadline of August 24th to draft a new plan. Yet, amidst this corporate roller-coaster, Eatech held its ground, promising stakeholders their previous commitments wouldn't waver. And as the sun set on July 24, the market heartbeat displayed Eatech's shares at a humble 16 sen, telling a tale of resilience and adaptation.

Reference: EATech withdraws regularisation plan after calling off share subscription agreement​

Navigating The Storm: The Captain Behind Eatech's Resurgence

At the center of this unfolding epic stands Nasrul Asni Muhammad Dain, the CEO of Eatech. With a formidable academic and professional background, Nasrul stands as a beacon of hope and resilience for the company. From the halls of the University of Wales, Cardiff, to the intricate labyrinths of Malaysia's banking and shipping sectors, Nasrul's journey has been marked by dedication, foresight, and unparalleled leadership.

The Financial Rebirth: Eatech's Debt Restructuring

Eatech's tale of resurgence is steeped in strategy. The acquisition of a Restraining Order from the High Court in early 2022 was the clarion call of the company's renewed vigor. The Eatech Creditors Scheme (EAT Scheme) was launched, a masterstroke that heralded the sale of significant assets, including prime vessels such as M.T Nautica Batu Pahat and Muar, to name a few.

The Investor's Goldmine: Diving Into Eatech's Prospects

For the astute investor, Eatech is emerging as a veritable goldmine:

Legal Windfalls: The potential legal claims from Vertigo hold the promise of an injection of a hefty RM70 million.

Financial Health: Eatech stands poised with a near-pristine financial commitment record. 

Modern Fleet: Eatech's modern fleet, boasting a 90% utilization rate, is a testament to its operational efficacy.

Contractual Strength: Contracts worth RM553 million underline Eatech's market credibility and future revenue potential.

Consistent Profitability: Four quarters of consecutive profit since Q3 2022 and whispers of continued prosperity suggest that Eatech is on an upwards trajectory.

Charting The New Course: Eatech's Revival Blueprint

​A transformative senior management team with a laser focus on efficiency and a vision for the company's future ushered in, Their strategies include:

Creditors' Scheme: A 70% haircut to creditors, strengthening shareholders' equity.

Capital Infusion: A fresh RM60 million capital boost.

Lucrative Contracts: A potential revenue-rich contract from Petronas in 2024.

White Knight's Strategic Investment: Plans to acquire a substantial 60% share signifies a strong affirmation of Eatech's trajectory.

The Road Ahead: Soaring To New Heights 

​Exiting PN17: The pathway and timeline for Eatech's exit from PN17 have become clearer. The court stamped its approval on Eatech's scheme on 4th January 2023, and the sealed order was subsequently received on 12th January 2023. The company is laser-focused on submitting and executing the regularisation plan within the next six months. Furthermore, reports hint at two consecutive profitable quarters on the horizon for 1Q & 2Q 2024.

Earning Turnaround Dynamics: The marine business remains a consistent revenue driver for Eatech. Coupled with the new management's stringent cost controls and the heightened utilisation of its 26-vessel fleet, the company is on an upward trajectory.

Orderbook & Earnings Snapshot: With new contracts in the kitty (like the Petronas FLNG1), FY23 and FY24 look promising. The current orderbook stands at RM634 million (with RM300 million secured and an optional extension of RM334 million). Although the bid book is at RM70 million, new bidding rounds in 2023 are eagerly anticipated.

In the sprawling saga of corporate renaissance, Eatech's chronicle stands peerless, echoing the mystical tale of the Phoenix's rebirth. Stumbling, almost faltering under the weight of the PN17 status, the company's narrative could have been one of descent into oblivion. Yet, with the unwavering spirit of a company resolute on resurgence, Eatech took on the tumultuous tides of financial turbulence. Guided by the astute leadership of CEO Nasrul Asni Muhammad Dain, Eatech began stitching its wounds, masterminding strategies ranging from debt restructuring to capital infusion. The anticipated golden offers, like the one from Petronas, alongside other formidable moves in the playbook, only underscore the company's vigor to reclaim its throne. With back-to-back profitable quarters on the horizon and the continued commitment to excellence, Eatech seems poised to not just rise, but soar, painting a panorama of promise and prosperity. As the curtain falls on this chapter of their tale, it’s clear: Eatech’s ascent is but the prelude to an even grander odyssey ahead.

It is my hope that the information provided in this article will be useful for all investors. My intention is simply to share information about a company that has the potential to bring profit to investors. Ultimately, any decision made is up to the individual.

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