Dennis Ling
KUCHING: Despite the global economic slowdown affecting the shipping sector, Main Market- listed local player Hubline Bhd (Hubline) saw a good year in 2012 with various corporate exercises successfully executed ahead of an anticipation of a positive year ahead in 2013.
Among such exercises concluded this year include the settlement of its RM220 million Murabahah Commercial Paper Medium Term Notes programme (MCP/MTN) and Bai’Bithaman Ajil Islamic Debt Security (BaIDs) in full yesterday.
In this respect, the rating service of RAM Ratings was no longer required.
This was on the back of the successful completion of two fund-raising exercises, via private placement and rights issue exercises – respectively concluded in May and October this year – raising a total amount of approximately RM136 million.
Hubline chairman and chief executive officer Dennis Ling in a statement to the media said, “We are grateful to all the shareholders in supporting the fund raising exercises the company undertook this year.
“There are actually a lot of opportunities during this downturn where new vessels are priced very attractively at the moment but it is sad to note that most banks are shying away from the industry instead of entering the market now when asset prices are very low,” he underscored.
Despite the challenging shipping industry, Hubline earned a cumulative year to date profit for the financial year ended September 2012 (9MFY12) of RM2.54 billion, according to its company announcement on Bursa Malaysia.
It garnered a revenue of RM480.36 billion for the period.
To note, Hubline is a player in both the container shipping and dry bulk shipping sectors, as well as vessel chartering.
The group has an extensive network and niche routes which gives the group a competitive edge over peers.
Hubline’s vessels have been operating in the intra-Asian ports for the past 20 years and this has proved that its business model was working well, especially with the European market still in doldrums, highlighted Ling.
“The outlook appears positive for Hubline as it continues to demonstrate sustainable improvement in its operations on the back of cargo volumes in the niche intra-Asian region, which is spared from the Euro crisis.”