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Profit at ASL Marine Soars 40%

ASL Marine logo ASL Marine Holdings Limited (SGX: A04), an integrated marine company offering services in shipbuilding, shiprepair and conversion, shipchartering and dredging engineering, posted a revenue of $465.4 million for Financial Year 2013 (FY2013), an increase of 19.0% over FY2012. The improvement was because of “higher contributions primarily from the shipbuilding, shipchartering and engineering segments, partially offset by a decline in revenue from the shiprepair and conversion segment.”

The gross profit margin improved to 18.0% in FY2013 compared to 14.5% in FY2012. The improvement in gross profit margin was mainly due to the construction of 2 units of high value platform supply vessels and reversal of unrequired construction costs provision.

Net profit attributable to shareholders increased 40% to $45.3 million due to the increase in revenue and the increase in gross profit margin across all segments, which were slightly offset by an increase in administrative expenses.

The net profit margin increased to 9.7% in FY2013 as compared to 8.3% in the previous year.

As of 30th June 2013, the balance sheet contains $369.2 million of total debt and cash of $88.2 million. The earnings per share for FY2013 was at 10.79 Singapore cents and the net asset value was at 95.02 Singapore cents.

There was a net cash of $112.1 million used in operations for FY2013 versus net cash of $75.7 million generated in the previous year. The company has declared a final dividend of 2.0 Singapore cents per share, as compared to 1.75 Singapore cents in the previous year.

Mr Ang Kok Tian, Chairman and Managing Director of ASL Marine, said, “Sustained oil prices and an increasing focus on deepwater oil fields have supported the growth in global oil and gas exploration and production expenditures. This development is expected to be positive for the Group’s shipbuilding and shipchartering segment, as it supports newbuild demand for offshore support vessels and healthy charter rates. Indeed, our Batam yards are expected to benefit from Indonesia’s cabotage law and high level of activities, while large LNG fields in Australia will also spur demand for offshore support vessels.”

The shares in the company closed at $0.65 on 28th August 2013. The PE is at 6 while the PB is at 0.68. The dividend yield is at 3.1%.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice.  Motley Fool Singapore contributor Sudhan P doesn’t own shares in any companies mentioned.