ASL Marine, parent of dredge maker VOSTA, reports Q3 results, including profit and backlog

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Posted June 15, 2020

QUARTERLY UPDATE PURSUANT TO RULE 1313(2) OF THE LISTING MANUAL

ASL Marine Holdings Ltd. (the “Company”, and together with its subsidiaries, the “Group”) was placed on the Watch-list under the Financial Entry Criterion pursuant to Listing Rule 1311(1) of the Listing Manual of the Singapore Exchange Securities Trading Limited (the “Listing Manual”) on4 December 2019.

Pursuant to Rule 1313(2) of the Listing Manual, the Board of Directors of the Company (the “Board”) wishes to provide an update of the efforts made in meeting the Financial Exit Criteria as set out in Rule 1314(1) of the Listing Manual.

Update on Unaudited Financial Performance and Financial Position
The Group recorded a profit before tax of $5.2million for the third quarter (“3Q FY2020”) as compared to loss before tax of $7.4 million in the corresponding quarter. The Group’s loss before tax decreased by approximately $19.1million (77.5%) to $5.5million for the nine months ended 31 March 2020 (“9MFY2020”) as compared to the corresponding period in FY2019. This was contributed by the higher gross profit and other operating income, coupled with lower administrative and other operating expenses, partially offset by higher impairment losses on financial assets.

Despite the reduction in the Group’s revenue, the Group’s gross profit increased by approximately $0.1million (1.8%)to $7.3million and approximately $4.8million (43.5%)to $15.7million in 3Q FY2020 and 9MFY2020 respectively, as compared to the corresponding periods in FY2019.This was mainly due to higher gross profit from its shipbuilding and shipchartering segments, partially offset by lower gross profit from shiprepair, conversion and engineering segment.

The Group’s earnings before interests, tax, depreciation, amortization, impairments and other non-cashflow items increased by approximately $16.1 million (122.0%) to $29.3million in 3Q FY2020 and approximately $24.3 million (64.0%) to $62.2million in 9MFY2020, as compared to the corresponding periods inFY2019.

As at 31 March 2020, the Group had an outstanding shipbuilding order book of approximately $22million and shipchartering order book of approximately $56million with respect to long-term contracts(duration of more than one year).

For more details on the results and financial position of the Group and the Company, please refer to the unaudited financial statements announcement for the third quarter and nine months ended 31March 2020 released via SGXNET on 12 June2020.

Update on Future Direction
The Group is conducting a continuing review of its businesses and strategies and is considering various plans,taking into consideration the current market conditions, uncertainty in the global economy and the impact of COVID-19 pandemic on the Group’s business as disclosed in our COVID-19 announcement updated on13 May 2020 and our results announcement released today. The Company aims to seek an exit from the Financial Entry Criterion Watch-list within 36 months from 4December 2019and will provide updates to its shareholders in due course.

BY ORDER OF THE BOARD

Ang Kok Tian
Chairman,Managing Director and CEO
12 June2020