Summary
53.6% Net Profit Surge: Elridge Energy’s 1H26 net profit jumped to RM39.96 million (from RM26.01 million in 1H25), driven by strong operating leverage and solid pricing efficiency.
22.8% Revenue Growth: Half-year revenue reached RM262.50 million (up from RM213.81 million in 1H25), bolstered by robust demand for biomass fuel across key Asian markets.
Regional Decarbonization Push: Expanding production capacity across Kuantan and East Malaysia targets growing palm kernel shell (PKS) off-take from Japanese and regional power producers.
Biomass fuel manufacturer Elridge Energy Bhd posted a 53.6% year-on-year surge in net profit to RM40.0 million for the first half of 2026, driven by aggressive export volume growth across Asian green energy supply chains.
The group recorded a top-line revenue expansion of 22.8% to hit RM262.5 million for the six-month period ended June 30, 2026, supported by strong spot and long-term contract orders for palm kernel shells (PKS) and manufactured biomass pellets.
With regional industrial boilers in Japan and East Asia accelerating transitions away from fossil fuels, the group’s ongoing capacity expansion across regional ports reinforces export execution as international ESG compliance mandates tighten.
📊 The Data / News Breakdown
53.6% Net Profit Growth: First-half net profit reached RM39.96 million in 1H26, up from RM26.01 million recorded in the same period last year.
RM262.5 Million Top-Line Revenue: Revenue expanded 22.8% year-on-year, anchored by strong export sales of palm kernel shells and biomass pellets.
PKS Dominates Product Mix: Palm kernel shell sales accounted for over 90% of group revenue, led by consistent off-take from Japanese power utilities and regional industrial buyers.
Capacity Scaling Underway: The group is scaling total installed capacity from 1.44 million metric tonnes toward 2.16 million tonnes over the next 18 to 24 months to support long-term regional supply agreements.
What This Means for the Bottom Line
1. Biomass Exporters Capture Expanded Cash Margins Amid Coal Phase-Outs
Japanese and regional utility mandates pushing away from coal are driving long-term off-take pricing for processed biomass fuel. Certified Malaysian suppliers with port-adjacent processing hubs can lock in long-term contracts, insulating operational cash flows from domestic retail energy cost shifts.
2. Palm Oil By-Product Monetization Bolsters Plantation Ecosystem Cash Flow
Strong top-line expansion in biomass fuel revenue highlights the rising financial value of agricultural waste streams. Upstream palm oil mills supplying raw palm kernel shells to specialized aggregators capture secondary revenue streams, strengthening raw material margins across agribusiness supply chains.
3. Regional Port Logistics and Storage Hubs Face Capacity Demands
With export sales making up the bulk of biomass revenues, bulk port infrastructure and specialized maritime logistics hubs serving Pahang, Johor, and East Malaysia are experiencing elevated throughput volumes. Logistics providers managing dry bulk handling equipment face sustained leasing demand through late 2026.
🎯 The TopBusiness Bottom Line
Surging biomass export profits demonstrate that turning agricultural waste into certified green fuel provides local agribusinesses with high-margin, dollar-denominated export security.
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