KUCHING: Sealink International Bhd has returned to profitability, posting a group net profit of RM18.23 million for financial year ended December 31,2024 (FY2024) from a loss of RM3.82 million in FY2023, boosted by higher utilisation of vessels and charter rates.
Year-on-year,group revenue surged to RM125.26 million from RM106.36 million. The company reported earnings per share of 3.64sen from losses per share of 0.76sen previously.
In FY2024,Sealink’s vessel chartering segement generated revenue of RM122.76 million and pre-tax profit of RM34 million while the shipbuilding segment chipped in with revenue of RM2.49 million but incurred pre-tax loss of RM4.1 million.
In 4Q2024,Miri-based Sealink widened its group net loss to RM7.44 million (4Q2023:- RM5.18 million) as revenue fell to RM20.83 million (RM26.2 million).
Compared to the immediate preceding quarter (3Q2023),Sealink reported a fairly weak bottomline in the current quarter.
In 3Q2024,group pre-tax profit was RM14.52 million (4Q2024:-RM6.83 million) on higher revenue of RM38.79 million (RM20.83 million).
Going forward,Sealink said the group maintains a positive outlook on its prospects,expecting strong financial performance driven by sustained demand for its vessels as this favourable market environment positions the group for continued growth.
“As we progress into 2025,we remain committed to leveraging emerging opportunities within Malaysia’s oil and gas (O&G) sector,guided by the latest insights from the Petronas Activity Outlook 2025-2027,” it said in explanatory notes to its financial results.
“The activity outlook remains positive in line with the continued recovery that we have seen throughout 2024.
“Notably,new contract opportunities are emerging within the (vessel chartering) segment supporting drilling activities where Petronas has yet to contract its 2025-2027 requirements.
“With our diverse fleet of marine support vessels,we are well positioned to meet the demand of these upcoming projects,particularly in providing essential services for drilling and development operations.
“Furthermore,the supply of offshore support vessels (OSVs) continues to decline,creating a favourable demand-supply imbalance.The limited availability of OSVs indicate a gradual reduction in vessel supply,which is expected to persist.
“In our view,this trend will drive increased demand for vessels over the medium to long term,supporting higher day rates and improved fleet utilisation,” said the company;
To capitalise on these favourable market conditions,Sealink said the group is implementing several strategic initiatives,which include the following:
*Fleet optimisation: the company is continuously assessing its fleet capabilities to ensure alignment with the specific requirements of upcoming projects,maximising vessel utilisation;
* Collaborative engagements:strengthening partnerships with key stakeholders remains a priority as it seeks to secure contracts related to drilling support and other critical offshore operations;
* Sustainability commitment:recognising the industry’s growing emphasis on sustainability,it is exploring ways to integrate environmentally friendly practices into its operations,ensuring compliance with global standards and client expectations.
Sealink said the group had significantly reduced its term loans to RM1.9 million from RM10 million in 2023 or by 81 per cent.
“This speaks well of the viability of our business.With lower gearing,the group will maintain a stronger balance sheet,enabling us to secure additional financing for expansion when opportunities arise.”
Sealink said the group remains focused on its core operations,which include ship chartering,ship repair and shipbuilding.
“Our shipbuilding division will prioritise constructing vessels catering for niche markets and upgrading docking facilities to enhance ship repair services.
“Additionally,we aim to develop new vessels with improved energy efficiency and environmental sustainability,aligning with increasingly stringent industry regulations.
“Looking ahead,we are committed to securing new charter contracts and pursing growth opportunities to achieve stronger financial performance this year,” it added.
