ASL Marine

[Aspellian]

August 20, 2009

ASL Marine Q4 net profit down 59%
Group hit by $3.2m impairment loss on vessels; revenue falls 11% to $102m

By JAMIE LEE

ASL Marine Holdings posted yesterday a sharply reduced quarterly net profit due to an impairment loss on vessels.

Sales from ship-building - ASL's biggest revenue component - dropped 15.2 per cent while revenue from ship-repair and other marine-related services dipped 3.2 per cent

This was due to a $3.2 million impairment loss on vessels, booked under 'other operating expenses'.

<wonder whether will hit other similar companies or only ship-building companies? not sure the type of vessels that are impaired? Ezra, swiber etc could be affected? ....

Sales from ship-building - ASL's biggest revenue component - dropped 15.2 per cent to $60.1 million, from $70.9 million.

This was mainly due to certain projects in process that have yet to reach the '10 per cent recognition threshold during the period', the company said.

<which also means that if <10% of recognition, the contribution will not be much, unless they have 100 projects of <10%, also i tot ship-building has slowed down, so high-value backlog projects shouldnt be much
Remaining sales - split between ship-repair and other marine-related services and ship chartering and rental - fell less drastically.

Revenue from ship-repair and other marine-related services dipped 3.2 per cent to $20.6 million from $21.2 million a year earlier.

Sales from ship chartering and rental slipped 7.5 per cent to $21.5 million from $23.2 million, mostly due to lower vessel utilisation rates and higher trade discounts to customers.

Gross profit for the quarter was $19.1 million, down 1.6 per cent from $19.4 million previously.

[Musicwhiz]

Ezra is OSV provider, hence unaffected. For Swiber, they are doing EPCIC which involves some engineering and fabrication; but nothing like ship building which has impairment to vessel value; hence I believe they will not be affected either.

10% threshold for revenue recognition seems new to me. I had always thought "% of completion" method of accounting for construction contracts meant that even if 1% is completed, you can recognize the associated revenues, costs and progress billings?

[kennynah]

scary lah.... these types of "family" owned businesses.... how money moves from one pocket to another...is not always that very transparent one....

[winston]

The Board of Directors of ASL Marine Holdings Ltd. (the "Company") wishes to inform
that the Company will be releasing its financial results for the three months ended 30
September 2009 on Wednesday, 11 November 2009, after trading hours.

[millionairemind]

November 11, 2009, 5.44 pm (Singapore time)

ASL's Q3 net profit halved

By VINCE WEE

ASL Marine saw third quarter net profit plunge by half to $11.8 million from $23.9 million in Q308 on lower shipchartering revenue.

Revenue fell 1.1 per cent to $117.4 million from $118.6 million as higher revenue from ship building, repair and conversions helped offset the $6.6. million fall in chartering revenue.

[winston]

Not vested. From OCBC:-

ASL Marine: Diversified and expanding

Summary: 2009 has proved to be a challenging year the shipbuilding industry, but ASL’s diversified operations and prudent management has enabled it to weather the year relatively better than competitors such as Jaya Holdings (unrated).

Going into 2010, the group’s expanded Batam yard will contribute to earnings after it took the opportunity to invest earlier. However, we expect new shipbuilding demand to remain suppressed under relatively tight credit conditions and a potential over-supply of vessels situation.

ASL will be taking delivery of 10 vessels worth about S$71m of which eight are being built internally. This increases the group’s fleet size and hence its charter income, though net profit may not increase proportionately if charter rates continue to face pressure.

As market sentiment improves, there may be greater investor interest in more cyclical stocks that “ride the upside” better. In addition, we also expect ASL to weather any unexpected shocks (global economic recovery is still uncertain) better than its peers, given its diversified operations. We maintain our S$1.18 fair value estimate and BUY rating on the stock. (Low Pei Han)

[millionairemind]

February 10, 2010, 6.09 pm (Singapore time)

ASL's Q2 net profit falls 45%

By ANGELA TAN

Shipping-related ASL Marine Holdings Ltd reported net profit for the fiscal second quarter ended Dec 31, 2009 fell 44.9 per cent to S$8.97 million.

Total revenue, however, grew 26 per cent to S$135.79 million.

Higher revenue recorded by shipbuilding and shiprepair and ship conversion operations was partially offset by lower revenue from shipchartering operations.

[kennynah]

if i was into FA...i will scrutinize their expenses and operating costs.... all these "family" businesses very scary one... earn $1...99cts can go into "personal" items that somehow become company expenses...

[millionairemind]

August 16, 2010, 6.39 pm (Singapore time)

ASL wins ship building contracts worth S$55 mln

By ANGELA TAN

ASL Marine Holdings Ltd said on Monday that its subsidiary, ASL Shipyard Pte Ltd, has secured new shipbuilding contracts worth a total of about S$55 million for 30 vessels.

The contracts comprise 2 units Azimuth Stern Drive Tugs, 1 unit pipe-lay barge and 27 units cargo barges.

The 2 units of Azimuth Stern Drive Tugs are scheduled for completion by the first quarter of 2012. The barges are scheduled for progressive deliveries by the first quarter of 2011.

These contracts are expected to have a positive financial impact on the consolidated net tangible asset and earnings per share of the group for the financial year ending June 30, 2011.

[millionairemind]

August 18, 2010, 6.25 pm (Singapore time)

ASL's Q4 net profit slips 4%, FY2010 down 47.5%
By ANGELA TAN

ASL Marine Holdings Ltd reported on Wednesday that its net profit for the fiscal fourth quarter ended June 30, 2010 slipped 4.1 per cent to S$7.18 million.

Revenue for the quarter rose 2.8 per cent from a year ago to S$105.10 million.

For the full year ended June 30, 2010, net profit fell 47.5 per cent to S$37.29 million on lower gross profits recorded by all three segments of shipbuilding, shiprepair and conversion and shipchartering.

Shipbuilding operations recorded a lower gross profit margin due to technical complexities faced for certain projects completed during the year.

Shiprepair operations were affected by the pricing pressure and a change in business mix. The group undertook more large ship conversion jobs which generally has lower profit margin.

Shipchartering operations were hit by the lower vessel utilisation rate and continued pricing pressure.

Full year revenue was up 7.6 per cent from a year ago at S$468.37 million due to higher revenue from shipbuilding and shiprepair and conversion operations and despite lower revenue from shipchartering operations.

ASL has declared a final dividend of 3 cents a share. A year ago, it paid a final dividend of 3 cents a share and a special dividend of 1 cent a share.