OPERATIONS AND FINANCIAL REVIEW
In FY2016, the Group achieved a higher revenue
of $364.4 million, a 97.9% increase year-on-
year (“yoy”) while gross profit increased by
32.5% to $50.5 million.
Shipbuilding
Shipbuilding revenue increased from a negative
of $30.2 million to $189.2 million, this was
mainly driven by the progressive recognition
from the building of tugs, barges and tankers
and absence of reversal of revenue following
the rescission of offshore support vessels
contracts in FY2015.
In line with the increase in shipbuilding
revenue, the Group recorded a gross profit of
$23.4 million at gross profit margin of 12.4%
in FY2016. Consequent to the rescission of
contracts, and an overrun of subcontractors’
costs incurred to ensure timely delivery of
4 units of tugs, a gross loss of $5.0 million was
reported in FY2015.
Shiprepair and conversion
Shiprepair and conversion revenue decreased
by $34.6 million (35.9%) yoy to $61.7 million
in FY2016. This was mainly attributed to the
absence of any large rig repair work, which
contributed $32.7 million in FY2015.
Despite the decrease in gross profit by 17.5%
to $15.8 million in FY2016, gross profit margin
improved from 19.9% to 25.6%. This was
mainly attributed to lay up charges recognised
on vessels being laid up in our yard after
repair; and the reversal of accrued costs
that were being negotiated for prior years
completed projects.
Shipchartering
Shipchartering revenue increased by 19.7% yoy
to $86.0 million for FY2016, largely contributed
by the chartering of tug boats, grab dredgers
and hopper barges to support our customers
in the domestic marine infrastructure projects.
Approximately 23% of the shipchartering
revenue in FY2016 was attributable to long-term
chartering contracts. The Group’s overall
vessel fleet utilization rate was 52% in FY2016,
with decreased utilization rate for OSVs, tugs
and barges at 62%, 55% and 49% respectively.
Shipchartering segment reported gross profit
of $2.8 million for FY2016, as compared to
$10.4 million for FY2015. Gross profit margin
for the shipchartering segment decreased from
14.4% to 3.3% yoy due to 1) lower demand and
reduction in charter rates from OSVs as a result
of challenging market conditions in the offshore
andmarine industry; 2) lower utilization rate from
the landing crafts that were used to transport
the precast products from Batam to Singapore
as a result of slow down in demand of precast
in Singapore; and 3) lower utilization, reduction
Shipbuilding Shiprepair Shipchatering Engineering
400.00
350.00
300.00
250.00
200.00
150.00
100.00
50.00
0
(50.00)
Revenue ($’million)
7%
24%
17%
52%
25%
39%
52%
-16%
FY2016
FY2015
ASL Marine Holdings Ltd.
Annual Report 2016
19
FY2016
FY2015
Gross Profit ($’million)
17%
6%
31%
46%
36%
27%
50%
-13%
60.00
50.00
40.00
30.00
20.00
10.00
0
(10.00)
