Shipbuilder Shin Yang sees brighter prospects
BY JACK WONG
KUCHING: Shin Yang Shipping Corp Bhd (Syscorp) sees brighter prospects ahead for its shipbuilding and ship-repair operations.
Group financial controller Richard Ling said that the group’s ongoing shipbuilding contracts were worth RM762mil, with most of them secured this year.
On Thursday, Dayang Enterprise Holdings Bhd said its wholly-owned unit, DESB Marine Services Sdn Bhd, had entered into a shipbuilding contract with Shin Yang Shipyard Sdn Bhd (100% owned by Syscorp) for the construction of an offshore accommodation workboat for RM70mil.
Syscorp group is currently building about 25 vessels, including offshore supply boats, landing craft, tugs and barges.
“The order-book for new-build vessels can keep us busy for the next two years. The group is constantly looking for new business and bidding for new contracts,” Ling told StarBiz.
Syscorp group, which delivered a seismic vessel for the oil and gas industry and a landing craft in the April-June quarter, owns three shipyards in Miri and a fourth in Bintulu.
Ling said the group’s shipbuilding capacity had increased after major upgrading works at its shipyards. They now focus on building bigger vessels.
He said Syscorp’s ship-repair business grew about 15% from a year ago as more ships were docked for maintenance and repair works.
For the financial year ended June 30, he said the group repaired 390 vessels, including 144 delivered in the fourth quarter.
The shipbuilding and ship-repair segment’s revenue in FY13 surged 70% to RM304.4mil from RM177.8mil a year earlier. The segment’s operational profit improved to RM7.6mil from RM6.9mil.
On Syscorp’s shipping operations, the main contributor to group revenue, Ling said containerised cargo volume had risen more than 20% in the past 12 months, contributed mainly by outbound cargo from Sabah and Sarawak to Peninsular Malaysia.
“There is a significant increase in the volume shipment of fertlisers from Sabah to the peninsula. This has filled up empty containers on the return trip.
“The economies of scale achieved in the shipment of more containerised cargo has resulted in the improvement of profit margin in domestic shipping although freight rates have remained stagnant,” Ling said.
In FY13, group revenue from the shipping segment rose to RM601.5mil from RM537.7mil in FY12.
Publish date: 09/09/13