ASL Marine’s 2QFY2013 earnings rise 39.8% y-o-y to S$10.6 million
ASL Marine Holdings Ltd. (“ASL Marine” or the “Group”), an integrated marine company offering comprehensive services in shipbuilding, shiprepair and conversion and shipchartering, reported revenue of S$83.0 million and net profit attributable to shareholders of S$10.6 million for the three months ended 31 December 2012 (“2QFY2013”), said in a press release.
In 2QFY2013, broad based revenue growth across all three business segments, i.e. shipbuilding, shiprepair and conversion, and shipchartering, pushed revenue higher by 7.3% year-on-year (y-o-y) to S$83.0 million.
Revenue from the shipbuilding segment increased slightly by 3.4% y-o-y to S$49.9 million in 2QFY2013 due to higher revenue recognition from the construction of more vessels during the quarter. The Group worked on 23 vessels in 2QFY2013 as compared to 17 vessels in 2QFY2012, with more focus on Offshore Support Vessels. Gross profit margin for the shipbuilding segment was boosted from 11.7% in 2QFY2012 to 17.5% in 2QFY2013 due to the construction of two units of high value Platform Supply Vessels and reversal of unrequired construction costs provisions.
Revenue from the shiprepair and conversion segment increased 17.3% y-o-y to S$10.7 million in 2QFY2013 due to an increase in larger docking repairs jobs undertaken during 2QFY2013. Gross profit margin benefited from a write-back of sub-contractor costs for completed jobs from prior years in 2QFY2013, which surged from 30.1% in 2QFY2012 to 39.2% in 2QFY2013.
The shipchartering segment recorded revenue of S$22.3 million in 2QFY2013, an improvement of 12.1% y-o-y due to higher utilisation rate from charter of tugs, and charter income received from 2 Anchor Handling Tugs (AHT) and one Anchor Handling Towing / Supply Vessel (AHTS) acquired after 2QFY2012. Apart from these factors, a higher proportion of time charter and the absence of additional depreciation of S$0.7 million back charged from cancellation of vessels held for sale in 1QFY2012, contributed to higher gross profit margin of 31.0% in 1HFY2013 as compared to 20.1% in 1HFY2012.
Other operating income decreased 80.4% y-o-y to S$0.3 million, mainly due to the absence of unrealised foreign exchange gain and significantly lesser gain on disposal of plant and equipment. Meanwhile, other operating expenses increased by S$2.5 million to S$2.9 million largely due to S$2.5 million of allowance for impairment of doubtful debts, and foreign exchange loss amounting to S$0.5 million.
The Group recorded a strong increase in net profit attributable to shareholders as the revenue and gross profit margin improvements made in the core business segments significantly outpaces the decline in other operating income and higher operating expenses.
Net profit attributable to shareholders was reported at S$10.6 million in 2QFY2013, a 39.8% increase over the S$7.6 million for 2QFY2012.
The Group’s shipbuilding order book from external customers stood at approximately S$528 million as at 31 December 2012, which comprised of 34 vessels including Offshore Support Vessels, AHTS, self-propelled cutter suction dredger, tugs and barges. These vessels have progressive deliveries up to 4QFY2014.
The Group’s shipchartering fleet comprised of 202 vessels as at 31 December 2012 (31 December 2011: 194 vessels). Meanwhile, the Group’s shipchartering operations have a total outstanding delivery order of 25 vessels worth approximately S$138 million, comprising AHT, AHTS, ROV Support Vessel, landing crafts, tugs and barges. With the exception of 3 vessels worth a total of S$8 million, these vessels are being built internally by the Group.
Approximately 30% of the Group’s shipchartering revenue in 1HFY2013 was contributed by long-term chartering contracts. As at 31 December 2012, the Group had an outstanding order book of approximately $83 million with respect to long-term shipchartering contracts.
ASL Marine Holdings Ltd. is a dynamic marine group principally engaged in shipbuilding, shiprepair and conversion, shipchartering and other marine related services, catering to customers from Asia Pacific, South Asia, the Middle East, Europe and Australia. ASL Marine owns and operates shipyards in Singapore, Batam (Indonesia) and Guangdong (China), providing a comprehensive range of marine engineering services spanning myriad sectors/ industries. The Group’s 300,000 dwt graving dry dock in Batam is one of the few docks in the region capable of repairing Capesize vessels. It has a young fleet of about 202 vessels comprising barges, towing tugs, Anchor Handling Tugs, Anchor Handling Towing/ Supply vessels and other vessels for its shipchartering operation.
