As at June 30, 2016, our 222 non-OSV fleet
comprises mainly of towing tugs, flat top work
barges, crane barges, split hopper barges,
dredge workboats, grab dredgers, landing
crafts and tankers. Demand for these vessels
is less sensitive to the oil price and offshore
oil and gas support market. However, during
the financial year under review, we incurred
substantial repair and maintenance costs for
our fleet, and coupled with request from long-
term customers to reduce charter rates to help
them stay competitive in their bids for project,
we recorded a loss in this division.
Nevertheless, we have secured new order of
$110 million during FY2016. This will improve
the utilization rate of our fleet going forward.
As at June 30 2016, the Group has an
outstanding order book of approximately $150
million for long-term shipchartering contracts
stretching up to 2026.
Dredge Engineering
Performance at our Dredge Engineering division
(Vosta LMG) was impacted by an absence of
new dredgers’ newbuild projects as the marine
and dredging sector also took a wait-and-see
attitude in view of the current weak business
outlook brought on by the low oil price. Vosta
LMG dredge components such as cutter head
and cutter teeth, ball joints, dredge control
system and engineering services also saw a
slowdown in demand. Revenue fell but we held
up our gross margin. We undertook another
re-organization exercise in Europe incurring a
one-off cost of $1.2 million that resulted to a
loss in this division. However, this will improve
our operational efficiency and translate into
future cost saving of $1.5 million per year.
FINANCIAL HIGHLIGHT
In this turbulent year, it was inevitable that we
had to impair some of the older receivables and
write-down some inventory and asset value.
Nonetheless, we still managed to churn out a
decent net profit, thanks to our diversification
in business.
The Group had a net asset value per share of
100.03 Singapore cents as at June 30, 2016,
compared to 100.00 Singapore cents in the
previous financial year. For FY2016, the Group
reported earnings per share of 0.47 Singapore
cents, compared to 1.89 Singapore cents for
FY2015. The Group did not propose a final
dividend for FY2016 as the Board wish to
conserve cash for working capital usage.
To enhance our overall capital base, the
Group has announced a 2-for-1 Rights Issue
post financial year close, to raise fresh capital
of approximate $25 million. The controlling
shareholders gave their vote of confidence
and strong support towards the future of the
Group by underwriting their full entitlement.
In addition to this capital raising exercise, we are
also continuing to look for strategic partnership
and/or investor(s) to further beef-up our capital
base in the near term.
ASL Marine Holdings Ltd.
Annual Report 2016
17
