Sealink profit drops 30% in first half

Net profit for the first half ended 30 June 2015 dropped to MYR4.38m ($1.05m) from the profit of MYR6.25m in the previous corresponding period, Kuala Lumpur-listed Sealink said in its financial statement.

Revenue during the first six months, however, went up by 2.9% year-on-year to MYR69.89m due mainly to increased charter hire from vessels.

The lower profit was partly attributed to “impairment on doubtful debts and share of losses in associate and joint venture company while the favourable results from chartering division is insufficient to cover the drop in shipbuilding division.”

Sealink noted that the oil and gas industry slowed down since 2014 and is expected to remain fairly weak for the next one to two years. “Due to the sudden anticipated weakness, there is a surplus of marine offshore support vessels and the demand for new vessels and charter rates will remain low,” the company observed.

“We are continuing our internal cost cutting measures and to maintain the utilisation of our fleet. The long term prospect is still bright as the demand for fossil fuel are still required in the long term,” it added.