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Hubline, a Sarawak-based regional shipping line, which recorded impressive
an performance last year is confident the current strong freight rates will
hold.
“The outlook for shipping industry remains positive as the industry
continued to benefit from higher freight rates and charter-hire rates. The
demand for shipping services is expected to remain on the uptrend supported
by China’s insatiable demand to fuel its booming economy alongside better
world economic outlook,” said the chairman of Hubline, Datuk Amar Wee Hood
Teck.
The higher freight rates propelled Hubline’s total revenue to RM383 million
in 2004 financial period compared to RM 342 million for the previous
financial year.
Pre-tax profit jumped to RM 29 million, an increase of about RM9.5 million
or 48 per cent from 2003 while its net profit after tax rose by 83 per cent
to RM27.5 million from RM15 million.
The main board company listed the Bursa Malaysia said it would continue to
adopt a prudent approach in its expansion plans and would expand its fleet
size only if there was assurance of demand in the targeted trade routes.
With its present fleet size and a strong customer base Hubline is well
poised to ride on the strong demand growth in the intra-Asian trades.
Wee said 2004 had been a good year for the shipping industry, both
domestically and internationally which experienced a strong growth fuelled
mainly by strong demand for shipping services following improved world
economic conditions generally coupled with robust growth of the China
economy.
He said the Group continued to turn in satisfactory results due mainly to
the management’s ability to efficiently schedule its trade routes to achieve
optimal capacity utilisation and to keep costs under control.
“Additionally, the Group’s business strategy also includes identifying
opportunities which can generate a good return. This strategy has certainly
borne results by the Group’s investment in a port and shipping related
business in Thailand, namely Bangpakong Terminal Public Company Limited and
Platinum Container Lines Co. Ltd.,” Wee noted. |
