Shin Yang noted that prospects for the shipping industry continue to remain challenging amid continuing uncertainties in global economic situations.
“Vessel overcapacity continues to put bulk cargo and container freight rates under pressure over the short term,” Shin Yang observed.
“The demand for new build of high value vessels to serve in the oil and gas, infrastructure development and resources based industries have show signs of improvement,” the company said.
Shin Yang added that the performance of the group is largely dependent on the volatility of world fuel market price, quality of crews’ standard, domestic and regional demand for transportation of dry bulk and general cargoes, movement of local currency and world economic situations.
The Kuala Lumpur-listed company recently posted a jump net profit to MYR7.83m ($2.48m) in the full year ended 30 June 2014, up 155% compared to MYR3.07m in the previous financial year.
The full year profit was achieved despite a considerable pull back in profit in the fourth quarter, where profit dropped to MYR1.06m compared to MYR10.31m a year ago.
“The decrease in (fourth quarter) profit was due to the nil margin contribution from international liquid bulk segment and the unrealised margin of new shipbuilding’s work in progress during construction in shipbuilding and ship repair segments,” Shin Yang explained.
Revenue for the full year was recorded at MYR1.13bn, an increase of 24.2% from MYR909.94m in the previous year.
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