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Sealink first quarter of 2014 net profit up eight per cent
Despite registering lower revenue, shipping company Sealink International Bhd’s (Sealink) earnings for the first quarter of 2014 (1Q14) inched up eight per cent to RM4.65 million compared with RM4.31 million in 1Q13.
The company in a filing to Bursa Malaysia yesterday said the group’s revenue for 1Q14 was 28 per cent lower year-on-year (y-o-y) to RM36.19 million compared with RM50.52 million in 1Q13 due to lower income from its shipbuilding division.
Sealink explained that the company’s yard has just delivered four vessels between October last year to February 2014.
“Except for one multipurpose vessel, the few vessels under construction at our yard were at the early stage of completion as of March 2014,” it said.
“On a positive note, the company’s ship charter division’s turnover increased 53 per cent y-o-y to RM32.96 million in 1Q14 against RM 21.51 million in 1Q13 attributed to higher charter earnings from its two hybrid vessels which the group took delivery at the end of second quarter 2013 (2Q13) and 3Q13.”
Despite the improved performance from its ship charter division, the group recorded marginal increase in profit before tax of RM5.7 million for the current quarter due to losses from shipbuilding division.
Going forward, Sealink believes that the group’s financial performance will improve as the company expands its vessel fleet and increase productions from its shipbuilding division.
Sealink in its notes accompanying its financial results said, “With the new hook-up construction and commissioning jobs, offshore installation and enhanced oil recovery projects expected to come on-stream, we believe that the demand and rates for the charter and sale of our marine offshore support vessels (OSV) will improve from those obtained in 2013.
“In 2013, the group’s chartering division have also been awarded extensions for several long-term charter contracts.
“The group have also in 2013, taken delivery two hybrid multipurpose platform supply vessels cum anchor handling tugs, Sealink 178 and Sealink 179 which are currently operating in Asia.
“The contract extensions and revenue from the hybrid vessels will contribute positively to the SIB group’s overall results.
“We are still undergoing a modernisation exercise by disposing the older and smaller vessels to improve the charter and utilisation rates.
“Sealink has embarked on the building of more hybrid vessels or other vessels based on new shipbuilding requirements to meet the increased requirement from the oil and gas industry.
“The group is optimistic that it would perform reasonably well in the next 12 months,” the company said.
Source: The Borneo Post
The company in a filing to Bursa Malaysia yesterday said the group’s revenue for 1Q14 was 28 per cent lower year-on-year (y-o-y) to RM36.19 million compared with RM50.52 million in 1Q13 due to lower income from its shipbuilding division.
Sealink explained that the company’s yard has just delivered four vessels between October last year to February 2014.
“Except for one multipurpose vessel, the few vessels under construction at our yard were at the early stage of completion as of March 2014,” it said.
“On a positive note, the company’s ship charter division’s turnover increased 53 per cent y-o-y to RM32.96 million in 1Q14 against RM 21.51 million in 1Q13 attributed to higher charter earnings from its two hybrid vessels which the group took delivery at the end of second quarter 2013 (2Q13) and 3Q13.”
Despite the improved performance from its ship charter division, the group recorded marginal increase in profit before tax of RM5.7 million for the current quarter due to losses from shipbuilding division.
Going forward, Sealink believes that the group’s financial performance will improve as the company expands its vessel fleet and increase productions from its shipbuilding division.
Sealink in its notes accompanying its financial results said, “With the new hook-up construction and commissioning jobs, offshore installation and enhanced oil recovery projects expected to come on-stream, we believe that the demand and rates for the charter and sale of our marine offshore support vessels (OSV) will improve from those obtained in 2013.
“In 2013, the group’s chartering division have also been awarded extensions for several long-term charter contracts.
“The group have also in 2013, taken delivery two hybrid multipurpose platform supply vessels cum anchor handling tugs, Sealink 178 and Sealink 179 which are currently operating in Asia.
“The contract extensions and revenue from the hybrid vessels will contribute positively to the SIB group’s overall results.
“We are still undergoing a modernisation exercise by disposing the older and smaller vessels to improve the charter and utilisation rates.
“Sealink has embarked on the building of more hybrid vessels or other vessels based on new shipbuilding requirements to meet the increased requirement from the oil and gas industry.
“The group is optimistic that it would perform reasonably well in the next 12 months,” the company said.
Source: The Borneo Post
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