ASL Marine has reported earnings of $3.9 million for the FY2024 ended June 30, 10.6% higher y-o-y.
Revenue rose by 4.0% y-o-y to $349.3 million due to higher revenue from the group’s ship chartering business as well as its ship repair, conversion and engineering services business. This was partly offset by lower revenue from the group’s shipbuilding business.
Gross profit surged by 55.1% y-o-y to $45.7 million as gross profit margin (GPM) rose by 4.3 percentage points y-o-y to 13.1%. During the year, the ship chartering business reported a GPM of 2.1% compared to its loss in FY2023. The ship repair, conversion and engineering services business also saw GPM inch up by 1.3 percentage points to 24.4% while the shipbuilding business saw GPM plunge by 12.7 percentage points to 1.3%.
Profit before tax was up by 79.6% y-o-y to $12.6 million, although a 157.5% y-o-y surge in income tax expenses of $8.8 million brought profit for the period to $3.8 million, just 5.0% higher y-o-y.
In its outlook statement, ASL Marine says the macro trends for the shipbuilding, ship repair, offshore, and marine services industries – including softening global inflation and the US elections – remains “mixed and uncertain” although it sees “encouraging signs” of an uptick in the maritime industry.
“Whilst it is difficult to predict the impact of global events on the maritime industry, the overall long-term maritime industry outlook remains sustainable. Nevertheless, there remains potential exposure to higher interest rate for ongoing and near-term transactions,” says the group in its Aug 30 statement.
See also: IHH Healthcare’s 3QFY2024 patmi remains flat at RM534 mil
As at 9.08am, shares in ASL Marine are trading 0.5 cents lower or 7.94% down at 5.8 cents.
