Singapore – 13 November 2003
–
SESDAQ-listed Sinwa KS
Limited (“Sinwa”), a
regional marine supply and
logistics provider, today
reported a 15.6% jump in net
profit to $3.5 million for
the first nine months ended
30 September 2003.
This was achieved on the
back of a 27.6% rise in
turnover to $40.5 million.
Sales from the Group’s
Supply business grew by
27.3% to $37.1 million which
was due to several factors:
an increase in the supply of
initial stores to new
vessels; increased revenue
contributions from the
Group’s appointed marine
supply and logistics
companies in Dalian,
Shanghai and Guangzhou; as
well as an increase of 819
vessels serviced in
Singapore.
Sinwa also enjoyed a $1.1m
billing from the $8.5m Shell
contract which was
previously announced on 28
May 2003.
The Group’s Projects
business increased by 86.8%
to $2.9 million due to the
completion of four thermal
insulation projects,
compared to three in the
same period last year.
Revenue from the Group’s
Agency business, however,
fell by 45.1% to $610,000
due to lower business
volumes.
On a geographical basis,
customers from Europe –
comprising ship owners and
ship management companies –
continued to lead as the
Group’s main revenue
contributor, accounted for
78.3% of Sinwa’s total
revenue, while customers
from Asia contributed 11%
and Other Countries, 10.6%.
Based on the latest results,
earnings per share (on a
fully diluted basis)
increased from 2.52 cents to
2.92 cents for the first
nine months of the fiscal
year. The Group’s net
tangible asset backing per
ordinary share was 11.02
cents.
Commenting on the results,
Mr Mike Sim, Sinwa’s
Chairman & CEO said, “Since
May this year, our supply
business has been boosted by
increased orders for general
ships’ stores, provisions
and equipment to both ships
and oil rigs, as more
vessels were being serviced
in Singapore. We have also
commenced servicing and
collected our first billing
of $1.1 million from the
$8.5 million Shell
contract.”
“The results for the first
nine months ended 30
September 2003 indicate that
we are right on track to
improve on our FY2002
performance – both our
revenue and profit after tax
are up 27.6% and 15.6%
respectively against the
previous period.”
“With economic recovery
globally, we expect more
vessels to call on Singapore
ports and demand for ship
supplies to go up
correspondingly,” Mr Sim
added.
In addition, Sinwa’s
overseas operations in the
PRC also benefited from the
upturn and recovered
strongly to contribute
revenue which increased by
62.5% to $1.3 million for
the first nine months ended
30 September 2003.
As part of the Group’s plans
to focus and tap into the
buoyant oil and gas and
offshore industry, Sinwa
Offshore Pte Ltd was also
incorporated to provide a
comprehensive range of
mooring, oil-field equipment
and logistics services, with
contributions expected from
this sector in FY2004.
“Based on historical trends,
the year end months of
November and December are
high activity months for our
industry. We do not expect
to see any change in this
trend for FY2003,” Mr Sim
added.
About Sinwa KS Limited
With a history that dates
back to the 1960s, Sinwa KS,
a winner of EDB/Business
Time’s Enterprise 50 Awards
in 1998, is today an
established ISO
9001:2000-certified marine
supply and logistics company
servicing the oil and gas
industry and sea-going
vessels in Singapore, UAE,
the PRC and Timor Leste.
Sinwa KS’s core business is
supplying a wide range of
ships’ stores, provisions
and equipment to ships and
oil rigs, as well as
providing their operators
and owners with shipping
agency and related
services.
Since 1999, the Group has
also expanded its
capabilities to include the
supply, fabrication and
installation of thermal
insulation materials on gas
and chemical vessels. This,
together with its marine
supply management,
consultancy and contract
labour supply to oil rigs,
has helped the Group to
further diversify its
business and geographical
reach.
The Group’s acquisition of
KS Seafirst, a wholly-owned
subsidiary of
Mainboard-listed KS Tech
Limited, in 2002, has
enabled the Group to access
and increase its reach in
the oil and gas industry.
Through KS Seafirst’s
representative office in
Timor Leste, Sinwa KS also
provides contract labour to
the oil and gas industry
there.
