Singapore’s ASL Marine has managed to cut its second quarter losses by over 54% on the back of a major cost-cutting initiative.
The company reported a loss of SGD 4.5m ($3.2m) against a loss of SGD 9.8m reported in the corresponding period 12 months ago.
The Ang Kok Tian-led company said costs were slashed by almost 25% compared to a year ago going from SGD 92.5m to SGD 70m.
The improved performance at the shipyard and vessel operator came despite a near 18% year-on-year decline in revenue to SGD 78.3m.
Revenue at its shipbuilding arm fell 47.6% to SGD 17.1m, while its ship repair and conversion arm saw revenue slide 28.5% to SGD 18.1m.
However, its ship chartering arm was the one bright spot posting a 16% year-on-year increase in revenue to SGD 42.9m.
ASL Marine said charter revenue increased mainly due to revenue generated from infrastructure projects in the region, including one project that resumed operations during the quarter.
Looking ahead, the company said infrastructure spending in select Asian regions are expected to increase further, as China implements the Belt and Road Initiative in the countries along the route.
“The urbanization process in emerging markets such as Indonesia should boost spending for vital infrastructure sectors including water, energy and transportation. This represents mid to long term opportunities for the group’s business,” it said.
“In view of the outbreak of COVID-19 in China, we anticipate a moderate increase in ship repair activities during the next two quarters.”
As of 31 December 2019, ASL Marine had a shipbuilding order book worth SGD 33 million and a ship chartering order backlog worth SGD 75 million.
