KUCHING: Shin Yang Shipping Corporation Bhd’s (Shin Yang) sees its revenue for the fourth quarter of the financial year 2013 (4QFY13) increased on the back of the delivery of new built vessels and ship repai vessels, despite reporting that its bottomline had declined year-on-year (y-o-y).
In its explanatory notes on its quarterly financial results, the group noted that its 4Q saw an increase by 8.7 per cent to RM239.8 million from RM196.75 million in the previous year and RM220.7 million recorded in the immediate preceding quarter.
“The increase in revenue was mainly contributed by delivery of two units of newly built vessels and 144 ship repair vessels and also for the shipping of containerised shipments, tugs and barges for infrastructure projects in the current quarter,” the company said.
However, its, bottomline declined y-o-y to RM10.63 million in the second quarter of the financial year 2013 (4QFY13)likely due to higher taxes and losses incurred before tax from the investment holding and the shipbuilding and ship repair segments.
Tax expenses for the current quarter had amounted to RM5.17 million, as compared with the previous year of RM3.07 million in tax incomes.
As for the investment holding division, the higher administrative and finance expenses incurred during the current quarter had pushed the division to record a loss of RM1.29 million.
Meanwhile, the shipbuilding and ship repair division was effected by unrealised margin in the work in progress during construction.
Overall, the performance of the group is largely dependent on the volatility of world fuel market price, quality of crews’ standard, domestic and regional demand for transportation of dry bulk and general cargoes, movement of the ringgit and world economic situations.
“Vessel overcapacity continues to put bulk cargo, petroleum and chemical freight rates under pressure over the short term,” Shin Yang added.
The group has thus prepared itself for the continuing uncertainties in global economic situations.
In addition, the group acknowledged that the prospects for the shipping industry continue to remain challenging and as such, is prepared with sustainable and market driven routes for its fleet movements.
However, the company highlighted that it is confident in the stability of the domestic & coastal shipping and Middle East operations, and operational costs management will be an important priority in the next few quarters ahead.
“The other dependents for shipbuilding operations include the corresponding price movement of the marine mild steel plates, other heavy equipments and global trend of demand for newly constructed vessels, especially from the niche markets in oil and gas industry both domestically and regionally,” Shin Yang outlined.
As at closing, Shin Yang traded xxx sen higher at RMxxx per share with xxx,xxx shares changing hands.