KUALA LUMPUR (Aug 24): Elridge Energy Holdings Bhd (KL:ELRIDGE), a biomass fuel producer, saw its net profit double in the second quarter on higher revenue and biomass fuel product margins.

Net profit for the three months ended June 30, 2026 (2QFY2026), rose to RM22.19 million — the company's highest quarterly earnings since it listed in August 2024 — from RM12.43 million a year earlier, according to its bourse filing on Monday. Earnings per share rose to 1.11 sen from 0.62 sen.

Revenue rose 26.5% to RM131.71 million from RM104.14 million in 2QFY2015, on higher palm kernel shell revenue, which offset a decline in wood pellet sales volume. Gross margin also improved to 29.46% from 20.46% on better product margins.

No dividend was declared with the latest quarterly results.

For the cumulative six months, net profit jumped 53.6% year-on-year to RM39.96 million, while revenue rose 22.8% to RM262.5 million.

Elridge Energy said the addition of four more production lines at the new facility in Kuantan with 480,000 tonnes of annual production capacity is targeted to be operational in 4QFY2026.

Meanwhile, the Lahad Datu facility in Sabah remains on track for completion next year and is expected to add a further 240,000 tonnes of annual production capacity, the company said.

“Beyond volume growth, the group is diversifying into the production of activated carbon, a higher-margin, value-added product derived from palm kernel shell feedstock. This initiative is expected to unlock greater value from the Group’s biomass feedstock while broadening its revenue streams and market reach,” Elridge Energy said in a separate statement.

“Looking ahead, the group remains cautiously positive on its ability to achieve satisfactory financial performance for the financial year ending 31 December 2026,” it added.

Shares of Elridge Energy closed unchanged at 82 sen, valuing the company at RM1.64 billion.