Singapore Shipping's full year net profit rises 8.8%

SINGAPORE - Singapore Shipping Corp reported that net profit for the 12 months to March 31 rose 8.8 per cent to US$9.3 million (S$12.4 million) from a year ago.

Full-year revenue inched up 2 per cent to US$35.1 million, on the back of increased revenue from the ship owning segment.

Revenue from ship owning segment increased 63 per cent quarter-on-quarter, and 9.4 per cent year-on-year.

This was owing to three vessels delivered between last September 2014 and March, partially offset by weaker performances in the agency and logistic segment.

The firm added that better operating efficiency from the logistic business in the fourth quarter gave "some relief to the declining net profit of the agency and logistic segment, which faced margin pressures and volume decline".

The firm also said that with the delivery of three vessels and its long-term charters to a reputable shipping major in the second half of the 2015 financial year, the group has a secure base of recurring income, which has provided "a growth trajectory for the next decade if not longer".

It added that while its business model is profitable, the agency and logistics segment will continue to face earnings pressure in the current environment.

Earnings per share for the year was 2.1 US cents, up from 2 US cents a year ago, while net asset value was 15.3 US cents as at Mar 31, up from 14.3 US cents a year ago.

The firm declared a final dividend of one cent a share.