SAILING THE SEAS OF SUCCESS - Swissco Holdings Limited
SAILING THE SEAS OF SUCCESS - Swissco Holdings Limited SAILING THE SEAS OF SUCCESS - Swissco Holdings Limited
To provide our clients with the most comprehensive services to meet all their marine support and logistics needs. SWISSCO INTERNATIONAL LIMITED_12
OPERATIONS REVIEW Our Group’s two core businesses are principally to provide marine logistics support services and ship repair and maintenance services. In the marine logistics support business, we charter out our vessels, boats and tugs to the offshore oil and gas industries and we offer a total one-stop transportation and logistics service to the shipping industry. Our ship repair and maintenance services, which is complementary to our logistics business caters to small to medium sized vessel owners as well as attend to our own vessels. In FY04 our Group registered a net profit of S$3.9m (FY03: S$4.1m) on a lower turnover of S$8.5m (FY03:S$12.1m). The lower turnover is attributable to mainly lower charter income as we operate fewer vessels due to the disposal of our older vessels. This reduced our gross profits by 50% from S$4.1m in FY03 to S$2.0m in FY04. Nonetheless, the gains from disposal of vessels, ship repair business and better contributions from associated companies helped the group to offset the lower charter income in FY04. Our Group’s earnings per share dropped to 3.07 cents in FY04 from 3.29 cents in FY03. However, our net asset backing per ordinary share increased to 13.27 cents in FY04 from 10.17 cents in FY03. Our marine logistics support business to the shipping and oil and gas industries saw a reduced turnover due to fewer vessels in operation as a result of the disposal of our older vessels. In FY04 we operated a total number of 19 vessels as compared to 25 vessels in FY03. Gross profits fell as charter of third party vessels eroded profit margins. However, gains from other income of $4.3m in FY04 (S$2.0m in FY03) arising from the disposal of vessels compensated for the lower gross profits. In view of the buoyant demand for offshore support vessels and barges, the Group had taken the opportunity to sell off its older vessels with good gains. This was part of our Group’s strategic plans to phase out these older vessels in preparation for the delivery of 14 new vessels throughout FY05. Our ship repair and maintenance business reported an increase in turnover to S$2.8m in FY04 as compared to S$2.5m in FY03. This is attributable to higher demand for ship repairs and maintenance services as a result of the buoyant marine industry. Our associated companies which offer ship chartering and engineering services are significant constituent in the Group’s operations. They perform similar marine logistics support services to the oil and gas industry but in different market segments. Some of our vessels are deployed in their regional operations. Consequently, their complementary services boosted our Group’s performance with an improved contribution of additional $0.5m in FY04. During the year, we endeavoured to keep business costs down with tighter cost and credit control throughout the Group. However, our Administration and other operating expenses increased significantly in FY04 due to the Group’s restructuring and IPO expenses which are non-recurring. On borrowings, we have made a conscious effort to maintain a low gearing. As at year end, our Group’s debt to equity ratio was 0.07. Moving forward we will continue to push for better operational efficiencies. Our ship repair and maintenance business reported an increase in turnover to S$2.8m in FY04 as compared to S$2.5m in FY03. This is attributable to higher demand for ship repair and maintenance services as a result of the buoyant marine industry. The ship repair and maintenance business made a profit after tax of S$249k in FY04 (S$43k in FY03) due to improved cost control and no further requirement to provide for write down of the ship supply business (RMS), that has since ceased operations. ANNUAL REPORT 2004_13
- Page 1 and 2: SWISSCO SAILING THE SEAS OF SUCCESS
- Page 3 and 4: GROUP STRUCTURE 100% 100% Swissc
- Page 5 and 6: CHAIRMAN’S STATEMENT “Our Group
- Page 7 and 8: CORPORATE PROFILE Out Port Limit (O
- Page 9 and 10: OUR HISTORY our business to support
- Page 11 and 12: BOARD OF DIRECTORS Mr Yeo Chong Lin
- Page 13: CORPORATE INFORMATION BOARD OF DIRE
- Page 17 and 18: our vessels OUT PORT LIMIT (OPL) BO
- Page 19 and 20: CORPORATE GOVERNANCE REPORT Swissco
- Page 21 and 22: CORPORATE GOVERNANCE REPORT Interna
- Page 23 and 24: DIRECTORS’ REPORT Directors’ co
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- Page 61 and 62: SWISSCO INTERNATIONAL LIMITED (Inco
- Page 63: SWISSCO Swissco International Limit
To provide our clients with the most<br />
comprehensive services to meet all their<br />
marine support and logistics needs.<br />
SWISSCO INTERNATIONAL LIMITED_12
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