TAS records 84 pct growth for financial year 2014

TAS Offshore Bhd (TAS) and its group of companies, with TAS’ principal business activity of shipbuilding and secondary business of ship repair services had performed well for the financial year ended May 31, 2014 (FY14).

Announcing this, chairman of TAS Group, Datuk Mohammed Sepuan Anu revealed that the group has recorded a revenue of RM254 million for FY14, an increase of RM116 million or 84 per cent as compared to that recorded for financial year ended May 31, 2013 (FY13).

He stated profit after taxation rose to RM28.8 million, an increase of RM15.3 million or 113 per cent as compared to that reported for FY13.

“The improvement in performance was mainly due to the contribution from one of our wholly owned subsidiaries which stated its operation last year,” he said during TAS’ annual dinner held at a leading hotel here on Friday evening.

TAS Group’s chief executive officer Datuk Lau Nai Hoh, executive director Simon Lau and two of its group’s directors Tan Sri Dato’ Mohd Jamil Johari and Ling Ka Chuan were among those present.

Sepuan said during the first quarter of FY15, the group had already registered a growth of RM5.3 million in profit after tax.

Despite the challenging global situation, as at December 2014, he said the current contracts at hand are worth approximately RM286 million and this would contribute positively to the profit figures for FY15 and FY16.

Sepuan also pointed out this year would be a challenging due to the slow global recovery coupled with the drastic fall in the oil price.

According to him, the rise of shale oil industry in US has resulted an oversupply of oil as compared to the global oil demand.

This situation, he pointed out was further aggravated by the OPEC’s (Organisation of Petroleum Exporting Countries) decision not to reduce their production.

As a result the price of crude oil has fallen drastically over the last few months by over 50 per cent to the current price at about US$50 per barrel.

“We expect the demand for offshore support vessels to slow down. Amid this difficult situation, we are still able to secure two contracts for the construction of a Harbour Tug and a Ferry with a total value of RM30.63 million.

“Both of these vessels are currently under construction in our shipyard,” he said.

In addition, he said involvement with build-to-stock model would place the group in a favourable situation to meet the market demand for offshore support vessels.

He added, TAS’ involvement in the build-to-stock model would help the group in meeting the demand of vessel owners who require shorter delivery period for their vessels.

“However, we will be cautious in our ventures and remain committed to our tradition of being prudent in steering the company to another bright and fruitful year.

“We wish to thank our valued clients and suppliers for their continuous supports, the shareholders for their confidence in us, and the management and staff for their commitment and contributions in achieving the handsome performance for the group,” Sepuan added.
Source: The Borneo Post