4. Company Profile
• Core businesses:-
- Shipbuilding
- Shiprepair and Conversion
- Shipchartering
- Engineering (VOSTA LMG group)
• Shipbuilding and Shiprepair & Conversion
- 4 shipyards: 1 in Singapore (4 hectare), 2 in Batam, Indonesia (35 and 16
hectare) and 1 in Guangdong, China (8 hectare)
- Batam yard: 3 graving dry docks (300,000 dwt, 60,000 dwt and 20,000 dwt)
- The big dock is currently one of the largest dry docks in Batam capable of
accommodating larger vessels (like Capesize Bulk Carriers, Long Range
Product Tankers, Containerships, Heavy-lift Ships, FSO and FPSO)
4
5. Company Profile
• Shipbuilding and Shiprepair & Conversion (cont.)
- Builds a variety of vessels, specialises in building:
i) Offshore Support Vessels
(Heavy-Lift cum Pipelay Vessel, Subsea Operation Vessel, AHTS, PSV,
Offshore Maintenance/Accommodation Vessel, Rescue and Standby
Vessel)
ii) Construction Vessels and Dredgers
(Cutter Suction Dredger and Water Injection Dredger)
iii) Tugs (Rotor Tugs and Azimuth Stern Drive Tugs)
iv) Barges (Accommodation, Pipe laying and Work)
5
6. Company Profile
• Shipchartering
- Fleet size at 31 December 2012: 202 vessels
- Mainly barges, towing tugs, AHT, AHTS and chemical tankers
- Vessels on time or bareboat charter to following industries:
i) Offshore Oil and Gas
ii) Marine Infrastructure
iii) Dredging, Land Reclamation and Marine Construction Works
iv) Transportation of Cargoes e.g. coal, aggregates, sands, heavy lifts,
construction equipment, etc
6
7. Company Profile
• Shipchartering (cont.)
- Out of the 202 vessels in the fleet, 29 vessels are on long-term charters
- Of the 202 vessels, 29 vessels are deployed in Singapore, 53 vessels in
Indonesia, 44 in Malaysia and 18 in Australia
- Details on the fleet and type of vessels are highlighted below:
Type of Vessels No. of Vessels Avg. Age of Vessels
Barges 125 6
Towing Tugs 67 7
AHT 5 4
AHTS 3 2
Chemical Tankers 2 3
7
8. Company Profile
• Shipchartering (cont.)
(No. of vessels)
250
7 10
4 6 10 Other Vessels
200 7
65 62 67
150 61 59 62
Towing Tugs
100
115 118 111 125 116 125
50 Barges
0
FY08 FY09 FY10 FY11 FY12 1H FY13
As at FY08 FY09 FY10 FY11 FY12 1H FY13
AHT 4 4 4 3 5 5
AHTS 2 2 3
Chemical Tankers 1 2 2 2 2
ROV Support Vessel 1
Straight Supply Vessel 1 1
Total of Other Vessels 4 6 7 7 10 10
8
14. Shipbuilding
2Q FY13 2Q FY12 2Q FY13 2Q FY12 Chg
Breakdown of revenue: (No. of vessels) (No. of vessels) (S$’000) (S$’000) (%)
Offshore Support
8 3 40,841 16,620 145.7
Vessels
Dredgers - 1 - 8,887 (100.0)
Tugs 4 8 6,048 15,199 (60.2)
Barges and others 11 5 3,036 7,599 (60.0)
Total 23 17 49,925 48,305 3.4
14
15. Shipbuilding
1H FY13 1H FY12 1H FY13 1H FY12 Chg
Breakdown of revenue: (No. of vessels) (No. of vessels) (S$’000) (S$’000) (%)
Offshore Support
8 3 74,278 35,798 107.5
Vessels
Dredgers - 2 - 27,717 (100.0)
Tugs 4 8 12,324 22,211 (44.5)
Barges and others 15 6 6,704 9,470 (29.2)
Total 27 19 93,306 95,196 (2.0)
15
16. Shipbuilding
Revenue increased marginally by 3.4% y-o-y to S$49.9 million in 2Q FY13
due to higher revenue recognition from the construction of more vessels
during the quarter. The Group worked on 23 vessels in 2Q FY13 as
compared to 17 vessels in 2Q FY12, with more focus on Offshore Support
Vessels
Gross profit margin was boosted to 17.5% in 2Q FY13 (2Q FY12: 11.7%) due
to the construction of two units of high value Platform Supply Vessels and
reversal of unrequired construction costs provisions
16
18. Shiprepair and Conversion
Revenue increased by 17.3% y-o-y to S$10.7 million in 2Q FY13 due to an
increase in larger docking repairs jobs undertaken during 2Q FY13
Gross profit margin benefited from a write-back of sub-contractor costs for
prior years’ completed jobs in 2Q FY13, which surged to 39.2% in 2Q FY13
(2Q FY12: 30.1%). Excluding the write back, gross profit margin would have
been 25.2% in 2Q FY13 (2Q FY12: 29.5%)
18
19. Shipchartering
2Q FY13 2Q FY12 Chg 1H FY13 1H FY12 Chg
Breakdown of revenue: (S$’000) (S$’000) % (S$’000) (S$’000) %
Spot charter 15,188 13,919 9.1 29,544 27,366 8.0
Long-term charter 5,616 4,702 19.4 12,472 7,189 73.5
Total charter 20,804 18,621 11.7 42,016 34,555 21.6
Trade sales 1,516 1,038 46.1 2,184 1,864 17.2
Rental income - 244 (100.0) - 492 (100.0)
Total 22,320 19,903 12.1 44,200 36,911 19.7
19
20. Shipchartering
Revenue for 2Q FY13 rose by 12.1% to S$22.3m due to:
- additional charter income from 2 AHT newly acquired in 4Q FY12;
- additional charter income from an AHTS acquired in 2Q FY13;
- improved utilisation rate from charter of tugs; and
- both the AHTS and chemical tankers were fully utilised in 2Q FY13
Gross profit increased by 29.7% y-o-y in 2Q FY13 to S$6.4m and gross profit
margin lifted from 24.8% to 28.7% in 2Q FY13 due to:
- increase in Group’s utilisation rate for tugs from 67% to 72%;
- additional gross profit from an AHTS acquired in 2Q FY13;
partially offset by
- absence of gross profit in 2Q FY13 generated from ROV support vessel as it was
disposed off in September 2012
20
22. Profit Trend
(S$’m)
80.0 18.0%
16.3%
70.0 15.1% 16.0%
14.0%
60.0
11.9%
12.0%
50.0
10.0%
8.8% 8.3% 10.0%
40.0 8.0%
71.1 8.0%
30.0 60.3
6.0%
20.0 37.3 4.0%
31.9 32.3
10.0 20.4 2.0%
16.1
0.0 0.0%
1
FY08 FY09 FY10 FY11 FY12 1H FY12 1H FY13
Net Profit (12 months period) Net Profit Margin
Net Profit (6 months period)
1 TheGroup’s net profit for FY09 of S$71.1 million included a one-off gain of S$12.2 million relating to
divestment of ASL Energy Pte Ltd
22
23. Balance Sheets
31 Dec 12 30 Jun 12 Chg
(S$’m) (S$’m) %
Non-current Assets 573.7 514.2 11.6
Currents Assets 430.8 339.9 26.7
Total Assets 1,004.5 854.2 17.6
Current Liabilities 426.2 308.2 38.3
Non-current Liabilities 195.7 182.6 7.1
Total Liabilities 621.9 490.8 26.7
Total Equity 382.6 363.4 5.3
Property, Plant and Equipment 547.7 509.0 7.6
Bank Balances, Deposits and Cash 63.4 95.5 (33.5)
Total Borrowings 368.2 285.2 29.7
23
24. Financial Ratios
1H FY13 1H FY12
Return on Equity (annualised) 10.7% 9.2%
Return on Total Assets (annualised) 4.1% 3.7%
As at 31 Dec 12 30 Jun 12
Net Asset Value per Share1 (cents) 89.27 84.42
Gearing Ratio 0.98 0.81
Net Gearing Ratio 0.81 0.54
1Based on total number of issued shares of 419,511,294 as at 31 December 2012 and 30 June 2012
24
26. Shipbuilding Order Book
(S$’m)
693
586
523 528
327 310
At 30 Jun 08 At 30 Jun 09 At 30 Jun 10 At 30 Jun 11 At 30 Jun 12 At 31 Dec 12
• Total outstanding order book of S$528 million comprising of 34 vessels,
including Offshore Support Vessels, AHTS, self-propelled cutter suction
dredger, tugs and barges
• Progressive recognition up to second quarter of 2014
26
27. Shipbuilding Order Book
2H FY13 After FY13 Total
Type of Vessels Units S$’m % S$’m % S$’m %
Offshore Support
Vessels1 18 130 25 149 28 279 53
Tugs2 6 19 4 68 12 87 16
Dredgers and Barges 10 26 5 136 26 162 31
Total 34 175 34 353 66 528 100
1 Offtake Support & Supply Vessel, AHTS, Emergency Response & Rescue Vessels
and Platform Supply Vessels
2 Rotor Tugs and Diesel Electric Hybrid ASD Tugs
27
30. Business Outlook
Overall
• The outlook of offshore and marine industry for 2013 is expected to be good
with the sustained high oil price which is one of the key drivers for oil
companies to continue focusing on E&P activities
• Utilisation and charter rates for both AHTS and PSVs have generally
improved and enquiry levels for offshore construction vessel and AHTS
remained positive
• Weak bulk and containers shipping markets have led many shipyards
moving into the offshore segment thereby leading to stronger competition
and thinner margins
Global Offshore Exploration and Production Capex World Rig Total Contracted Utilisation
Source: Clarksons, Douglas Westwood, The World Deepwater Market Report Source: IHS Petrodata
30
31. Business Outlook
Shipbuilding
• Continue to focus on offshore oil and gas industry
• Focus on building OSV such as AHTS, PSV, DSV & offshore construction
vessels (such as crane barge, accommodation vessel, pipe-lay barge, etc.)
• To focus on product mix, project selection and project management to
optimise margins
• Outstanding order book of S$528 million provides earnings visibility until
4Q FY14
Shiprepair and Conversion
• To target more of higher value offshore oil and gas related projects such as
conversion, major repair and refurbishment of FSO, FPSO and oil rigs
• Developing the capability in offshore fabrication works
• Improving competitiveness, customer service and turnaround time will
continue to be a key focal point
31
32. Business Outlook
Shipchartering
• To increase proportion of vessels on long term charter thus improving
utilisation rate
• Maximising deployment, enhancing and renewing its fleet to better meet
customers’ needs
• Giving our attention to terminal operation, marine transportation and offshore
support
• Areas of operations – current areas include Singapore, Indonesia, Malaysia,
Australia and other Asian countries and expanding to Persian Gulf, East and
West Africa
• As at 31 December 2012, the Group had an outstanding order book of
approximately $83 million with respect to long-term shipchartering contracts
32
33. Business Outlook
Engineering
• The latest development in dredging, land reclamation and mining industries
will have a continued positive effect on the business of VOSTA LMG group
• Dredging companies will need to continuously invest in maintaining and up-
grading their equipment
• This development will also require new and adjusted technology for the
development and supply of which the VOSTA LMG group is well positioned
GREENFORCE Ball Joint T-Cutter system
33
34. Business Outlook
Capital Expenditure
• Total capex of S$91 million in 1H FY13 comprised mainly:
S$’m
Vessels 50
Assets under construction for yard infrastructure and vessels 23
Plant and machinery 17
• Shipchartering operations have an outstanding delivery order for 25
new vessels worth approximately S$138 million comprising :
Shipchartering outstanding delivery orders Unit
Barges 12
Tugs 7
AHTS 2
AHT 1
ROV Support Vessel 1
Landing crafts 2
Total 25
34
35. Share Price Information
As at 4 Feb 13 8 Feb 12
Share Price (S$) 0.74 0.57
Price Earnings Ratio 7.60 7.44
Price / Net Asset Value per Share 0.83 0.71
Market Capitalization (S$’m) 310.4 239.1
Source: Bloomberg
35
36. ASL vs Indices
Source: Bloomberg
FSTOG
ASL
ASL
FSSTI
FSSTI
FSTOG
ASL’s share price versus STI and FTSE Straits Times Oil and Gas Index (FSTOG)
(for 1 Feb 12 to 4 Feb 13 – normalised graph based on %)
36
