CHAIRMAN’S
MESSAGE
Outlook
According to U.S. Energy Information
Administration (“EIA”), the Brent crude oil
price is projected at average $54 per barrel in
2015 and $59 per barrel in 2016. However, it
also highlighted that the “projection remains
subject to significant uncertainties as the oil
market moves toward balance”, and “the oil
market faces a host of uncertainties heading
into 2016 including the pace and volume at
which Iranian oil reenters the market, the
strength of oil consumption growth, and the
responsiveness of non-OPEC production to
low oil prices.” Subsequent to this forecast
and in August, Goldman Sachs trimmed
their forecast for West Texas from US$57/
bbl to US$45/bbl and a warning that it
could touch US$20/bbl. Even if oil prices
did not fall, the uncertainties will weigh on
the capital expenditure budgeting of the
E&P companies. Consequently, we do not
expect the upstream activities to resume
to its previous level as seen in early 2014
very soon.
While this means further challenges ahead,
at this time our outstanding order books
for shipbuilding and shipchartering remain
healthy, offering earnings visibility. In
addition, we are hopeful that the existing
and upcoming major infrastructure projects
in Singapore are going to require more
work in land reclamation, dredging and
port construction, and these projects are
expected to benefit our chartering, precast
products and dredge engineering business.
We have also seen an increase in business
enquiries for repair of bulkers, tankers and
other types of commercial vessels, thanks to
low oil price.
Barring any unforeseen circumstances, the
Board expects the Group to remain profitable
for the financial year 2016.
Appreciation
My deepest appreciation goes to all our
management and employees for their loyalty
and dedication over this most challenging
of years. I would like to express my
sincere gratitude to our business partners,
customers and bankers for their trust and
support. I must also thank ASL Marine’s
Board of Directors for their help in shaping
our strategy, for their commitment and
strong stance on governance. Last but not
least, we are grateful to our shareholders
for your continued trust in us. For all our
stakeholder’s, we will strive to drive ASL
Marine through the challenges ahead to
deliver optimal performance in the medium
and long term.
Ang Kok Tian
Chairman and Managing Director
ASL Marine Holdings Ltd. /Annual Report 2015
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