CHAIRMAN’S MESSAGE
TO COPE WITH FORTHCOMING
CHALLENGES OF THE MARINE SECTOR
AND COMPETITIVE OPERATING
ENVIRONMENT, THE GROUP AIMS TO
WIDEN OUR REVENUE SOURCES BY GOING
BEYOND OUR TRADITIONAL MARKET
PLACES IN SOUTHEAST ASIA, AUSTRALIA
AND EUROPE, TO NORTH ASIA, INDIAN
SUBCONTINENTS AND MIDDLE EAST.
Dear Shareholders,
The year has seen the lowest oil price in last
10 years, hitting below USD30 per barrel in Jan
2016 before rising slightly above USD50 per
barrel in Jun 2016. Many in the marine industry
are affected by the current low oil price.
Charter rates for offshore support vessels have
tumbled; falling some 65% to 70 % from the
heyday in 2007/2008, from USD 27,000/day
in 2008 to USD 8,000/day in June 2016 for a
medium size AHTS of 8,000 bhp in Southeast
Asia, and there have been waves of news on
cancellation of rigs orders.
While our core business is in non-offshore
oil and gas vessels, i.e. mainly tugs and
barges, we have been a victim because of our
association to the sector from our shipbuilding
and repair divisions as we have rode the
tide of the buoyant offshore sector in prior
years, building and repairing some offshore
support vessels.
In the midst of this extreme challenging
environment, we count ourselves fortunate to
have churned out a set of financial results we
can be proud of. We achieved higher revenue
of $364.4 million, a 97.9% increase year-on-
year, and generated a net profit attributable to
shareholders of $2.0 million.
We were able to achieve this by realigning
our shipbuilding and repair capabilities back
towards our core business in tugs, barges,
workboats and tankers sectors.
ASL Marine Holdings Ltd.
Annual Report 2016
15
