Beng Kuang Marine Limited

55 Shipyard Road 628141

Tel: 6266-0010 Fax: 6264-0010

Beng Kuang Marine sails ahead

with 138% increase in PAT to

S$9.1 million in FY2007



on the back of 36% increase in revenue to S$95.7 millionProfit attributable to shareholders jumped 77% to S$6.7 million



ordinary shareTo reward shareholders with total dividends of 0.70 cents per

Singapore, 22 February 2008

(the ?Group?) (?

attributable to shareholders of S$6.7 million on the back of S$95.7 million revenue for the

financial year ended 31 December 2007.? Beng Kuang Marine Limited (?BKM?) and its subsidiaries明光海事?) has achieved record earnings of S$9.1 million and profit

Overall highlights 4Q2007

S$ ?000

4Q2006

S$ ?000 Change FY2007

S$ ?000

FY2006

S$ ?000 Change

Revenue 24,604 17,798 38% 95,687 70,550 36%

Gross profit 8,887 3,434 159% 25,942 17,272 50%

Profit from

operations 3,633 1,295 181% 9,998 5,416 85%

Profit before tax 3,249 1,070 204% 11,758 4,560 158%

Profit after tax 2,286 1,110 106% 9,077 3,820 138%

Profit attributable

to shareholders 2,311 1,108 109% 6,745 3,819 77%

FY2007 Financial Review

The Group?s revenue rose by 36% from S$70.6 million in FY2006 to S$95.7 million in

FY2007. The gross profit increased by 50% to S$25.9 million and the profit after tax

increased by 138% to S$9.1 million year on year. The increase in the Group?s revenue

was mainly attributable to the securing of higher value projects from the Infrastructure

Engineering (?IE?) division, the new stream of revenue from newly incorporated

subsidiaries and increase in market demand for its corrosion prevention services, and

improved sales performance from the Supply and Distribution (?SD?) division.

BKM

S$6.7 million for FY2007 year on year. The stellar performance was due to the high

volume in marine and offshore oil and gas activities and costing efforts while maintaining

administrative, selling and distribution expenses.?s net profits attributable to shareholders increased by 77% from S$3.8 million to

Segmental Review

Revenue from the Corrosion Prevention (?CP?) division increased by S$6.6 million from

S$32.3 million in FY2006 to S$38.9 million in FY2007. The increase was mainly due to

contributions from

increase in market demand for corrosion prevention services.BKM?s newly incorporated subsidiaries that operate in Batam and the

Infrastructure

Engineering

("IE")

29.8%

Corrosion

Prevention

("CP")

40.7%

Supply &

Distribution

("SD")

29.5%

2.0 2.2

3.8

9.1

0.0

2.0

4.0

6.0

8.0

10.0

S$ million

FY2004 FY2005 FY2006 FY2007

Figure 1: Profit after Tax Figure 2: FY2007 Revenue Breakdown

CAGR = 65.6%

Revenue from the IE division increased by S$12.4 million or 76% from S$16.2 million in

FY2006 to S$28.6 million in FY2007, showing the greatest growth among the various

divisions. The increase in revenue was due to the contributions from the conversion and

upgrading works of a Floating, Production, Storage and Offloading (?FPSO?) vessel in

Indonesia. In addition, the Group was able to secure higher value IE projects.

The increase in shipyard and rig building activities also had a positive effect on the SD

division, which in turn led to an increased in demand for the Group?s hardware products.

As a result, the SD division?s revenue increased by S$6.1 million from S$22.1 million in

FY2006 to S$28.2 million in FY2007.

?FY2007 is a record year for Beng Kuang Marine in terms of revenue and earnings.

The Group was able to capitalize on the numerous opportunities that were

presented throughout 2007. To reward our shareholders for their support, we are

proposing to declare a first and final dividend of 0.70 cents per ordinary share.?

Mr Chua Beng Kuang (蔡明光), Managing Director of BKM

Growth Prospects

In June 2007, the Group successfully

acquired the 30-year leasehold waterfront

land of approximately 32.8 hectare which is

approximately four times its present

operating yard in Batam. With decreasing

yard space available for offshore vessel

projects in the region,

acquisition provides good opportunities to

secure large-scale fabricating and

engineering projects. The Group aims to

increase its IE production capacity when the land is operational. In addition, the presence

of a 350-metre waterfront in this newly acquired land allows for convenient transportationBKM?s timely land

IE project in Batam, Indonesia

of large steel modules by sea. Barring unforeseen circumstances, this new yard is

scheduled to commence operations in 2H2008.

Mr Chua continues, ?With continued exploration and production spending due to high oil

prices and the ongoing replacement cycle of oil rigs and offshore vessels still going strong,

we continue to be optimistic about the outlook for the marine, offshore oil and gas sectors.

With our new yard in Batam, we believe that the IE division has good growth potential due

to the large number of shipbuilding and rig building projects undertaken by both local and

Batam shipyards.?

- End -

About Beng Kuang Marine Limited

Beng Kuang Marine Limited (?BKM?) and its subsidiaries (the ?Group?) are established providers

of Corrosion Prevention (?CP?) services, Infrastructure Engineering (?IE?) services, as well as the

Supply and Distribution (?SD?) of hardware equipment and tools to the marine and offshore oil and

gas industries. The CP and SD divisions have always been the main revenue drivers of the Group.

However, with the rapid growth in shipbuilding and rig building projects, BKM expects the IE

division to be a key growth driver in the future. For the IE division, BKM provides turnkey

engineering services from planning, project management to implementation involving fabrication,

corrosion prevention, testing, installation and pre-commissioning of steel work modules and

structures for customers in the oil and gas industry. With the acquisition of Water and

Environmental Technologies (WET) Pte Ltd in 2007, BKM is looking at business opportunities to

expand the new Environmental and Resource (?ER?) division.

For more information, please refer to the website, www.bkmgroup.com.sg

Issued for and on behalf of Beng Kuang Marine Limited

By Financial PR Pte Ltd

For more information, please contact:

Mark LEE, marklee@financialpr.com.sg

Yen TAN, yen@financialpr.com.sg

Tel: (65) 6438 2990 Fax: (65) 6438 0064

S$9.1 million in FY2007



on the back of 36% increase in revenue to S$95.7 millionProfit attributable to shareholders jumped 77% to S$6.7 million



ordinary shareTo reward shareholders with total dividends of 0.70 cents per

Singapore, 22 February 2008

(the ?Group?) (?

attributable to shareholders of S$6.7 million on the back of S$95.7 million revenue for the

financial year ended 31 December 2007.? Beng Kuang Marine Limited (?BKM?) and its subsidiaries明光海事?) has achieved record earnings of S$9.1 million and profit