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ASL Marine bags $113.5m orders, posts lower Q1 profit

ASL Marine bags $113.5m orders, posts lower Q1 profit
Singapore’s ASL Marine has secured contracts worth SGD156m ($113.5m) for its shipbuilding, ship repair and conversion, ship chartering and dredging engineering businesses.

The contracts are awarded mainly by repeat customers in the Asian region as well as in Middle East, US and Europe. ASL Marine said there could be potential additional orders from certain customers upon successful delivery of the current projects.

The shipbuilding and ship repair and conversion contracts are expected to be delivered over the next one to two years’ period and the ship chartering contracts will have a tenure of two to five years.

Meanwhile, Singapore-listed ASL Marine reported lower profit for the first quarter ended 31 March 2016 compared to the year-ago period due to the depressed offshore market.

Net profit for the quarter was recorded at SGD1.28m, down 34% from SGD1.94m in the same period of last year.

Revenue, however, went up by 42.1% year-on-year to SGD90.1m on the back from strong contributions from the shipbuilding division. ASL Marine had recognised income from the construction of tugs and more barges during the first quarter.

As at 31 March 2016, the group had an outstanding shipbuilding orderbook of approximately $246m for 21 vessels with progressive deliveries up to the first quarter of 2018. The orderbook comprises AHTS vessels, tugs, barges, seismic support vessel and tanker.

“The outlook for the oil and gas industry is weak. The continuous low oil price has dampen demand for new vessels especially in the OSV markets,” ASL Marine commented.

“Despite this there are still limited demand for non-OSV new vessels, albeit with stiff competition from other shipyards, prices are depressed,” it said.