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The cyclical shipping market that started to stablise in the early part of
2006 after a steep increase that started in 2004 and continued for much of
2005, is expected to soften.
The outlook for the freight market for specific sectors including the
container shipping sector has been showing signs of softening said the
Executive Chairman and Managing Director of Halim Mazmin Bhd, Tan Sri Dato’
Seri Halim Bin Mohammad.
“The trend is expected to continue for most part of the year and till 2009
on account of the fact that owners are taking delivery of new buildings and
this will increase the supply faster than the growth in demand,” said Halim.
Echoing his views, German–based Hamburg Süd warned of tougher times to come.
Hamburg Süd notes: “In view of the positive growth forecasts for world
trade, and especially the economic development of China, a further rise in
cargo volume is expected for 2006. However, it is not anticipated that the
increase in capacity of approximately 16 per cent resulting from the inflow
of newbuildings will be absorbed by worldwide cargo growth.”
Halim noted that the Malaysian shipping industry generally went through a
good year in view of the prevailing market condition.
Malaysia was ranked 18th largest maritime nation in the list of top 35
countries with fleet of 327 vessels totaling 9.8 million dwt, making up 1.17
per cent of the world total.
The total size of Malaysian fleet fell during the year under review on
account of the fact that several ships were disposed off by shipowners who
took advantage of the high prices of vessels in the S&P market.
Halim said HMB is studying the market closely and will consider any
opportunities to acquire suitable tonnage, at the right time and right price
and assuring stable returns.
“The strong cash reserves that we have provide us with sufficient confidence
to consider expansion in the event we decide to enter the S&P market,” he
said.
Total turnover of the company was lower at RM54.66 million for the financial
year under review than RM127.09 million recorded the previous year.
Nevertheless, the company continued to perform well as reflected in the
higher profit before tax totaling RM78.85 million for the financial year
ended 31 December 2005 compared with RM71.75 million recorded the previous
year said the executive chairman of HMB his 2005 Annual Report disclosed to
Bursa Malaysia.
Despite operating with fewer ships during the financial year under review,
HMB managed to record an increase in its profit before taxation (PBT)
totaling RM78.85 million compared with RM71.75 million posted the previous
year.
The increase in PBT recorded by the company during the year was
notwithstanding the lower turnover of RM54.66 million it registered compared
with RM127.09 million achieved in 2004. |
