Shin Yang bets on stability in Malaysia's coastal shipping

“The group is confident in the stability of domestic and coastal shipping and Middle East operations and operational costs management will be an important priority in the few quarters ahead,” Shin Yang said. Shin Yang operates 26 pairs of tugs and barges across the Middle East as well as two anchor handling tugs.

The Kuala Lumpur-listed company sank into the red in the quarter ended 31 December 2012 with a deficit of MYR12.77m ($4.11m) as against a profit of MYR15.64m in the same period of 2011.

Second quarter revenue, however, rose 27.9% year-on-year to MYR232.79m.

The net loss was largely due to the stiff competition on freight rates on domestic shipping routes and coupled with increase in bunkers and maintenance costs of newly acquired container vessels to its fleet.

Shin Yang suffered a first half net loss of MYR3.35m as against a net profit of MYR27.65m a year earlier.

“Vessel overcapacity continues to put bulk cargo, petroleum and chemical freight rates under pressure over the short term. Business cycles are unavoidable and the group has prepared itself for the continuing uncertainties in global economic situations,” Shin Yang said.