Shin Yang 4Q profit plunges 90% to RM1.1m

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KUALA LUMPUR (Aug 29): Shin Yang Shipping Corp Bhd’s net profit plunged 89.7% to RM1.06 million in the fourth financial quarter ended June 30, 2014 (4QFY14) from RM10.31 million a year ago, due to zero margin contribution from its international liquid bulk segment and the unrealised margin of new shipbuilding’s work in progress during construction in its shipbuilding and ship repair segments.

However, revenue for 4QFY14 rose 17% to RM280.69 million from RM239.83 million a year ago on improved revenue generated from the ship repair segment, container shipping and also crude palm oil shipment in the current quarter.

Despite the poorer 4Q net profit, Shin Yang said compared with the preceding quarter, it recorded a marginal increase of 9.8% in profit after tax.

This was largely due to the improvement of profit contribution from the domestic shipping and crude palm oil shipment operations in the current quarter, it said.

In a filing with the exchange today, the shipping company said its net profit for the 12 months period more than doubled to RM7.83 million from RM3.07 million in the previous year, while revenue grew 24% to RM1.13 billion from RM909.94 million.

“The performance of the group is largely dependent on the volatility of world fuel market price, quality of crews’ standard, and domestic & regional demand for transportation of dry bulk and general cargoes,” said Shin Yang on prospects ahead.

Other factors include the movement of the ringgit and world economic situations, it added.