Jaya rides wave of offshore profits
Photo by Jaya Holdings
Prolific workboat builder Jaya Holdings reported a 26% jump in net
attributable profit as the Singapore outfit rides the strong demand for
offshore support vessels.
Jaya’s move to build more and larger offshore support vessels has not only
made it possible for the outfit to reap higher daily charter rates , but
also presented them with higher selling prices and profits when selling some
of the vessels, said the company’s chief executive, Chan Mun Lye.
The group said year-on-year net attributable profit leapt 26% to S$113.3
million (US$82.8 million) for the nine months at the end of March. For the
January to March third quarter, the company saw turnover rise 32%
year-on-year to S$77.1 million with net attributable profit at S$39.1
million, up 9% compared with the same period last year.
The Singaporean group owns and operates 29 vessels, which include 16 anchor
handling tug supply (AHTS) vessels. In the third quarter, Jaya’s fleet
enjoyed an 11% year-on-year increase in average daily charter rates, while
the utilisation rate stood at 77% during the quarter.
Jaya currently has 65 vessels under construction, with completion dates
spread over the next three years. The company estimates that these vessels,
when finished will have a total value of about S$2.2 billion based on
current market selling prices. The units are made up mainly of mid-sized
AHTS’, platform supply vessels, diving support vessels and accommodation and
crane barges.
The rising market prices of AHTS’ and other types of offshore support
vessels enabled Jaya to sell nine vessels from its existing fleet for a
profit of S$48.7 million in the nine months to March, compared with S$27.9
million profit from the sale of seven vessels in previous corresponding
period.
The group owns three shipyards, in Singapore, Batam in Indonesia and Nantong
Qidong in China. The Batam and Nantong Qidong shipyards are being expanded
and when fully developed, will double Jaya’s total capacity to 391,000
square metres with a total shoreline of 1250 metres.
08 May 2008 02:23 GMT
| last updated:
08 May 2008 02:29 GMT
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