ASL Marine starts build-to-stock program for OSVs

The five vessels comprise of four anchor handling tug supply (AHTS) vessels and one maintenance work vessel.

“On one hand, we are seeing a robust offshore oil and gas industry on a growth trend. On the other hand, dire circumstances surrounding the commercial shipbuilding industry in Asian countries has given rise to a host of new entrants in the offshore support vessel construction scene, resulting in stiff competition and lowered prices,” said Ang Kok Tian, chairman and managing director of ASL Marine.

“As a counter strategy, the group will begin a build-to-stock program through which we hope to capture demand by reducing waiting time for our customers. In keeping with the group's conservative approach to risk, our build-to-stock program will commence on a smaller scale of SGD85m for five vessels,” Ang added.

ASL Marine's shipbuilding orderbook stood at approximately SGD268m as at 30 September 2013, consisting of 23 vessels including offshore support vessels (OSVs), AHTS vessels, self-propelled cutter suction dredger, tugs and barges.

Meanwhile, the Singapore-listed company reported a net profit for the first quarter ended 30 September 2013 of SGD11.7m, up 19.1% compared to SGD9.83m in the corresponding period of the previous financial year.

Revenue rose 66.7% year-on-year to SGD148.3m due primarily to the company's maiden revenues from Vosta LMG group, a contracting and engineering firm for dredging technology.

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