ASL Marine Q2 profit down on cost overrunsASL Marine Q2 profit down on cost overruns

Net profit in the second quarter ended 31 December 2013 decreased 26.4% year-on-year to $7.81m predominantly due to provisions and cost overruns in the shipbuilding segment.

Revenue during the period, however, rose 129.5% year-on-year to $190.44m on strong contributions from the shipbuilding segment, ship repair and conversion segment, as well as engineering segment, slightly moderated by the ship chartering segment.

“In line with our belief, we continue to see opportunity for growth in the oil and gas industry, and are taking appropriate steps to exploit these opportunities,” said Ang Kok Tian, chairman and managing director of ASL Marine.

“In this respect, our build-to-stock program is intended to capture rising demand for generic offshore support vessels, while the traditional build-to-order model is adopted for more customised vessels. This will enable us to capture economy of scale thereby maximising returns in a shorter time while keeping risks low,” Ang added.

As at 31 December 2013, the group held approximately SGD181m ($143.12m) in shipbuilding orderbook, comprising of 20 offshore support vessels (OSVs).