ASL Marine issues profit warning. Loses vessel contract on project delays

Singapore’s ASL Marine Holdings has issued a profit warning saying that expects to report a net loss for the fourth quarter ended June 30 2014.

The company has said that following a preliminary assessment the loss is largely due to the lower ship repair and conversion revenue recorded as works for the several units of service rigs has not been completed as at 30 June 2014.

The company said that due to these project delays, profit, which ASL marine had expected to book in 4Q FY2014 will now have to be booked in FY2015.

ASL Marine has further said that profit will further suffer from the delay in delivering the OSV class of vessels resulting in cost overruns and “regretfully the cancellation by the client of one of these vessels”.

As the vessel, cancelled by the client, is currently at its final stage of commissioning and will be ready for operation by the end of this calendar year, the management has said it is confident that there is demand for the unit, adding that the company is in talks with potential buyers and with charterers for the vessel.

“Despite the loss in 4Q FY2014, the Group expects to remain profitable for the whole of the financial year ended 30 June 2014. Further details of the Group’s performance will be disclosed when the Company announces its unaudited financial results for 4Q FY2014 on 28 August 2014. In the meantime, the Board of the Company wishes to advise its shareholders and investors to exercise caution when dealing with the shares in the Company,” reads a statement by ASL Marine Holding.