Halim Mazmin Bhd intends to expand its fleet by purchasing four vessels this year.
The company has close to RM300mil in cash reserves from the sale of previous ships when prices soared to record levels.
Executive chairman Tan Sri Halim Mohammad said the company would consider buying second-hand vessels of not more than five years old. It plans to buy bulk carriers and medium-range tankers. Since end-2005, it has been operating with four ships, comprising two clean product tankers and two container ships.
“We remain on the sidelines for the moment while waiting for a window of opportunity for the company to take advantage of attractive prices for acquisition and a more stable freight market condition,” he said after the company AGM yesterday.
Prices of dry bulk, container ships and medium-range tankers have hit the roof. Halim said, a second-hand cape-size vessel of 170,000 deadweight tonnes (dwt) was priced above US$100mil, while a new building ship of similar dwt cost about US$80mil as it would take a few years to be delivered.
The company has inspected a few ships and the purchase may be through a joint venture or on its own. It also plans to dispose of two clean product tankers when the price is right.
Halim Mazmin’s turnover of RM39.31mil for financial year ended Dec 31, 2006 (FY06) dropped 28% from RM54.66mil in FY05. The lower turnover in FY05 was due to the sale of two vessels.
Net profit for FY06 was RM5.38mil compared with RM79.03mil in FY05. If the one-off gain on disposal of vessel for RM72.77mil was adjusted, the net profit from normal operations was RM6.26mil in FY05.
The group also declared a first and final dividend of 5 sen per share of 50 sen each for 2006, with dividend payout estimated at RM15.68mil compared with RM18.91mil in 2005.
In a filing with Bursa Malaysia yesterday, the company said for the quarter ended March 31, it registered RM9.16mil in turnover and net profit of RM710,000.
The company has close to RM300mil in cash reserves from the sale of previous ships when prices soared to record levels.
Executive chairman Tan Sri Halim Mohammad said the company would consider buying second-hand vessels of not more than five years old. It plans to buy bulk carriers and medium-range tankers. Since end-2005, it has been operating with four ships, comprising two clean product tankers and two container ships.
“We remain on the sidelines for the moment while waiting for a window of opportunity for the company to take advantage of attractive prices for acquisition and a more stable freight market condition,” he said after the company AGM yesterday.
Prices of dry bulk, container ships and medium-range tankers have hit the roof. Halim said, a second-hand cape-size vessel of 170,000 deadweight tonnes (dwt) was priced above US$100mil, while a new building ship of similar dwt cost about US$80mil as it would take a few years to be delivered.
The company has inspected a few ships and the purchase may be through a joint venture or on its own. It also plans to dispose of two clean product tankers when the price is right.
Halim Mazmin’s turnover of RM39.31mil for financial year ended Dec 31, 2006 (FY06) dropped 28% from RM54.66mil in FY05. The lower turnover in FY05 was due to the sale of two vessels.
Net profit for FY06 was RM5.38mil compared with RM79.03mil in FY05. If the one-off gain on disposal of vessel for RM72.77mil was adjusted, the net profit from normal operations was RM6.26mil in FY05.
The group also declared a first and final dividend of 5 sen per share of 50 sen each for 2006, with dividend payout estimated at RM15.68mil compared with RM18.91mil in 2005.
In a filing with Bursa Malaysia yesterday, the company said for the quarter ended March 31, it registered RM9.16mil in turnover and net profit of RM710,000.