SHIPBUILDING
As the market conditions for the offshore and
marine industry became more challenging, in
December 2014, the shipbuilding contracts
for two (2) offshore support vessels, which
was scheduled for delivery in 1QFY2015 and
3QFY2015 respectively, were rescinded.
Due to the impact of the S$95 million reversal
on shipbuilding revenue following the
rescission, shipbuilding segment registered
negative revenue of S$30.2 million for
FY2015, compared to the revenue of S$278.3
million for FY2014.
In FY2015, the Group delivered a total of
12 vessels. Without considering the impact
of the reversal, shipbuilding revenue would
have been 80% lower than FY2014, primarily
due to the weak market conditions, as well
as the completion and delivery of several
shipbuilding projects undertaken in the
previous financial year and the lowPercentage
of Completion (“POC”) achieved from the
new projects. Revenue from offshore support
vessels, dredgers, and tugs declined, while
barges and other vessels brought in relatively
higher revenue.
Shipbuilding segment incurred a gross loss
of S$5.0 million for FY2015. In addition to the
impact of the revenue reversal, an overrun in
subcontractors’ costs on four units of tugs
also weighed on profit, as the Group was
committed to completing the construction
and make timely delivery.
SHIPREPAIR AND CONVERSION
Shiprepair and Conversion revenue decreased
7.8% year-on-year (“yoy”) to S$96.3 million
for FY2015.
While the amount of jobs taken and hence
the revenue recognition for the first three
quarters were relatively low compared to last
year, the Shiprepair and Conversion segment
saw significant revenue growth in the fourth
quarter of FY2015.
Gross profit for Shiprepair and Conversion
segment decreased 2.8% to S$19.2 million
for FY2015. Gross profit margin improved in
the second half of FY2015 compared to the
first half, partly supported by a repair project
for an Anchor Handling Tug for four months.
The gross profit margin for the segment
was 19.9% for FY2015, compared to 18.9%
for FY2014.
SHIPCHARTERING
Shipchartering revenue increased by 2.5%
yoy to S$71.8 million for FY2015, supported
by the two units of Landing Crafts (“LCT”)
that commenced operations in July 2014 and
June 2015 respectively, and the two additional
units of grab dredgers acquired in 4QFY2014.
These charters counterbalanced the effect
of the disposal of the ROV Support Vessel in
November 2014, as well as the absence of
revenue from the one unit of Anchor Handling
Tug (“AHT”). About 27% shipchartering
revenue in FY2015 was attributable to long-
term chartering contracts.
The Group maintained a healthy utilization
rate of 57% for its fleet in FY2015, with
utilization for OSVs, tugs and barges largely
stable at 86%, 57% and 55% respectively,
and utilization rate for LCTs significantly
improved to 79%.
OPERATIONS AND FINANCIAL
REVIEW
ASL Marine Holdings Ltd. /Annual Report 2015
19
