Posted on February 14, 2024
ASL Marine Holdings Ltd. (the “Company”, and together with its subsidiaries, the “Group”) was placed on the watch-list (the “Watch-list”) under financial entry criteria pursuant to Rule 1311 of the Listing Manual of the Singapore Exchange Securities Trading Limited (the “Listing Manual”) on 4 December 2019, where the Company has 36 months thereon to meet the requirements of Rule 1314 of the Listing Manual. Pursuant to an extension of time granted by the Singapore Exchange Regulation Pte. Ltd. on 30 November 2023, the Company has till 4 December 2024 to fulfill Rule 1314 of the Listing Manual.
Pursuant to Rule 1313(2) of the Listing Manual, the Board of Directors of the Company (the “Board”) wishes to provide an update on the financial situation of the Company and the Group in respect of the half year ended 31 December 2023 (“1H FY2024”) and its efforts and the progress made in meeting the financial exit criteria.
Update on Unaudited Financial Performance and Financial Position
The Group’s revenue of $90.6 million for the second quarter ended 31 December 2023 (“2Q FY2024”) and $178.7 million for 1H FY2024 was $21.2 million (30.5%) and $42.0 million (30.8%) higher respectively as compared to the previous corresponding periods. The higher contribution in 1H FY2024 was driven by higher contributions from all three business segments.
The Group recorded profit before tax of $0.5 million in 2Q FY2024 (2Q FY2023: loss before tax of $11.9 million) and $5.3 million in 1H FY2024 (1H FY2023: loss before tax of $19.9 million). The turnaround in 1H FY2024 was primarily due to higher revenue and gross earnings from all three segments, reversal of impairment loss on financial assets and an improved share of results of associates, partially offset by lower other operating income generated.
Excluding the finance cost on amortisation of bank loans and bond which pertained to amortisation of fair value adjustments resulting from re-measurement of long term bank loans and bonds in prior years, the Group’s profit before tax would have been $4.3 million in 2Q FY2024 (2Q FY2023: loss before tax of $8.6 million) and $12.3 million in 1H FY2024 (1H FY2023: loss before tax of $13.2 million).
The Group’s earnings before interest, tax, depreciation, amortization, impairments, and other non-cash flow items (“Adjusted EBITDA”) increased by $8.2 million (100.8%) to $16.2 million in 2Q FY2024 and $20.2 million (92.4%) to $42.0 million in 1H FY2024. Importantly, the Group continues to generate positive cash flow from its operating activities.
Please refer to the Company’s unaudited quarterly financial statements for the second quarter ended 31 December 2023 dated 14 February 2024 for a detailed update on the Group’s financial position and performance.
Update on Efforts for Satisfying Financial Exit Criteria
The Group’s primary focus continues to be on its core businesses, with sustainable revenue generated from shipbuilding, shiprepair and ship chartering. 2 Over the past 4 years, the progress of our recovery plan, aimed at meeting the Exit Criteria within 36 months from December 4, 2019, has been hampered by the COVID-19 pandemic. As we gradually return to a state of normalcy from the pandemic, the marine service industry is also recovering in parallel, barring the adverse impacts that may be caused by a) geopolitical tensions, b) rising interest rates and currency fluctuations, and c) inflationary pressures leading to higher energy price, raw material, labor costs due to a tight labor market. While it is challenging to predict the impact of global events and the growing emphasis on greener solutions (such as future green fuels and offshore renewable energy), the overall long-term outlook for the marine industry remains positive and sustainable.
The Group has turnaround and reported a net profit of $1.7 million in 1H FY2024 (1H FY2023: net loss of $19.9 million) and will continue to strive in improving its operating results and strengthen operational efficiency, productivity, and overall business performance. The Group remains committed to improving its businesses and implementing sustainable business solutions, taking into consideration the current and changing market conditions and the ongoing uncertainty in the global economy that may impact the Group’s businesses.
Save for the above, there is no other material developments or update that may have a significant impact on the Group’s financial position and the Company’s market capitalization that would affect its position on the Watch-list. The Board will continue to closely monitor the situation and will make appropriate announcement(s), if applicable, should there be any material developments or updates.
BY ORDER OF THE BOARD
Ang Kok Tian
Chairman, Managing Director and CEO
14 February 2024
