CHAIRMAN’S
MESSAGE
Shipchartering
Shipchartering segment as a whole has been
stable despite the adversity in the offshore oil
and gas market, supported by our diversified
fleet structure. As at June 30, 2015, our fleet
comprises 204 vessels (consists mainly of flat
top work barges, crane barges, split hopper
barges, tugs, dredge workboat, landing
crafts, tankers, and OSV). While chartering
revenue from offshore support vessels were
lower for the year, non-offshore vessels,
such as landing crafts, tugs and barges all
delivered higher revenue, as they are mainly
deployed in the domestic and regional
marine infrastructure and construction
projects (such as land reclamation, dredging
and port construction) and transportation
businesses (mainly the transportation of
precast reinforced concrete products used in
the domestic construction industry). Demand
for these vessels is less sensitive to the low
oil price and the declined offshore oil and gas
support market. In addition, our chartering
business benefited from the competitive
logistic costs brought by the lower oil prices.
We have made substantial effort in securing
new chartering order book. As at June 30
2015, the Group had an outstanding order
book of approximately S$57 million for long-
term shipchartering contracts.
Dredge Engineering
Our Dredge Engineering business (Vosta
LMG) was in a way negatively impacted
by the fewer dredgers’ newbuild projects.
The dredging and land reclamation sector
has been relatively quiet over the last one
year. Prices of newbuild dredgers were
extremely competitive and we do not foresee
any improvement in current financial year.
On an encouraging note, we saw higher
demand and orders for Vosta LMG dredge
components and services. The demand for
our cutter head and cutter teeth, ball joints,
dredge control system and engineering
services remained healthy.
Precast Reinforced Concrete
Products
Notably, our 50% joint venture, Sindo-Econ
Group, has delivered remarkable performance
for the year, supported by higher sales in
precast reinforced concrete products. The
demand for precast products is expected to
be supported by the domestic public housing
development program such as the roll-out
of new Build-to-Order flats as well as MRT
tunneling works, and further contribute to the
Group’s financial performance in the future.
The precast production plant is located in our
subsidiary shipyard in Batam (PT. Cemara
Intan Shipyard) and equipped with a roll-on /
roll-off ramp, purposed built for loading and
discharging of cargoes. The finished precast
products are shipped out from Batam by our
landing crafts. The charter of our landing
crafts provides a long-term sustainable
income for our chartering division.
Financial Highlight
Our diversified business model and fleet
structure have enabled us to generate
a relatively healthy operating cashflow
of S$124.8 million, even as the market
remained challenging. The Group had a net
asset value per share of 100.00 Singapore
cents as at June 30, 2015, compared to
97.88 Singapore cents as at June 30, 2014.
For FY2015, the Group reported earnings per
share of 1.89 Singapore cents, compared to
5.27 Singapore cents for FY2014. The Group
proposed a cash dividend of 0.4 Singapore
cents for FY2015, representing a dividend
payout of 21%.
ASL Marine Holdings Ltd. /Annual Report 2015
17
