Singaporean shipbuilder and offshore fleet owner Jaya Holdings has reported a consolidated net profit of S$104 million (US$77.23 million) for the financial year ended June 30, 2010 compared to S$1.2 million (US$890,000) a year ago.
"The good performance underscores the resilience of the group's vertically integrated business model of shipbuilding, owning and chartering of offshore supply vessels (OSV)," said the company in its bourse statement.
Group revenue for the financial year under review rose by 36 percent year-on-year to S$357 million (US$265.11 million), largely from the delivery of 11 vessels in that period.
The company's offshore division recorded lower revenue, down 29 percent mainly due to lower fleet utilisation of 71 percent against 83 percent a year ago as a result of soft charter market conditions, and a reduced fleet size from 24 vessels a year ago to 21 vessels.
The chartering market was weak during the year under review due to the expansion of the global charter fleet with new vessels coming on line and is expected to remain challenging in the near term, according to the company.
"Although the chartering market experienced an upswing in charter activity early in the year, it will take some time before charter rates recover to previous levels as the oversupply of vessels continue to impact the global charter market," said the company.
The company has contracted four vessels for sale amounting to approximately US$52 million for delivery in the next quarter.
As the group looks ahead, it expects lower vessel sale/disposal as compared to 2010 as it intends to focus on growing its charter fleet in anticipation of an eventual market recovery.
{WISroYQ symbol='J10.SI'}
