In a significant development that characterizes the robust growth of Malaysia’s entrepreneur-led shipping company Halim Mazmin Bhd, the decks have been cleared for the company to move to Main Board of the Kuala Lumpur Stock Exchange.

HMB, one of the most successful shipping companies in Malaysia, will join the ranks of Malaysia International Shipping Corporation Bhd on the Main Board of KLSE and draw upon its strength and its five-year track record as a Second Board company to chart new areas of growth.

The company, whose fleet strength is only second to MISC, is ready to break new grounds and make a dynamic entry in the international and national shipping scene with its new-found vitality and vigour.

HMB Executive Chairman Tan Sri Datuk Halim Mohammad said HMB’s transfer to the Main Board would provide it with a stronger platform to foster the expansion of the company.

“The transfer of HMB to the Main Board of KLSE will be consistent with our plans to expand our fleet as it will provide it with the necessary strengths in the capital and financial markets,” he added.

“We have identified specific areas of expansion as part of our plan to become a shipping line of international repute, character and form,” he said after the company’s 6^th AGM in Kuala Lumpur on Friday.

At the AGM the company proposed a bonus issue of three shares for every two existing shares held and as part of the company’s plan to move up to the Main Board, the AGM passed a proposal to increase the company’s authorized share capital from RM50 million to RM100 million by way of issue of the shares.

The bonus issue will increase the capital of HMB to reflect its growing size of operations and assets employed by the company and also enable the company to meet the minimum share capital requirement of RM60 million to qualify for the proposed transfer of the listing (and quotation for its entire enlarged issued and paid-up share capital to the Main Board).

Maintaining an uninterrupted 5-year growth trend and performance since the company was listed, HMB reported an impressive 16.24 per cent increase it its turnover totaling RM90.9 million for the financial year ended 31 December 2000.

The improved financial performance of the company was reflected in a further increase in its after tax profits which rose from RM13.5 million in 1999 to RM14.7 million in 2000.

“The financial improvement was attributed to the higher total revenue from the deployment of additional vessels acquired by the company during the year,” Halim said.

He said HMB and its Group of companies continued to achieve further cost savings through targeted areas of operations and management which resulted in positive gains and improved margins.

Halim said company made inroads during the year in bulk shipping with the acquisition of a Capesize dry bulk carrier – the 149,475 dwt Meridian Polaris - which served to buttress the revenue base of the company and diversify the product profile of the group as well as globalise its shipping activities.

Meridian Polaris is the largest vessels of its kind in the Malaysian Registry.

The company also acquired two more container ships during the year in review to bring to total the number of vessels in its fleet to nine with a combined tonnage totaling 311,151 dwt.

All the vessels of HMB are secured on firm and long-term charters generating predictable and stable revenue stream.

Its four container ships are chartered to reputable international shipping lines. Two of the vessels – Harmony Container and Freedom Container - are chartered to Kien Hung Shipping Company (Taiwan) which has deployed the vessels in the trade between Malaysia and S America calling directly at Port Klang.

The company’s two other vessels – American Senator and Japan Senator - have been chartered to Senator Line which also call Port Klang directly in the east-west trades.

HMB’s four product tankers are chartered to Petronas and Shell while the company’s latest acquisition Meridian Polaris operates under an arrangement with NYK of Japan.

Meanwhile, at the EGM (held in conjunction with the AGM) ratified HMB’s joint venture agreement for the acquisition of the three vessels last year. The first agreement was for the purchase of two container ships – Harmony Container and Freedom Container – for a total cost consideration of US$43.6 million (RM165.7 million) and the second agreement was for the acquisition of the Capesize bulk carrier, Meridian Polaris, for a cash consideration of US$23 million (RM87.4 million)