KUCHING: TAS Offshore Bhd has secured 19 new shipbuilding contracts from Indonesia worth about RM232.1 million in financial year ended May 31, 2025 (FY2025). This boosted the group’s order book to RM278 million, said TAS chairman Datu Mohammed Sepuan Anu.
He said Indonesia remains the group’s largest market, contributing approximately 95 per cent of group revenue of RM145.2 million in FY2025, more than doubled RM72.4 million in FY2024.
“This growth was driven primarily by robust tugboat sales to Indonesia and Singapore,” he added in the company’s 2025 annual report.
For the year under review, the group delivered 20 tugboats valued at RM144.3 million to Indonesian and Singaporean ship-owners.
In FY2025, TAS posted a 81.6 per cent jump in group after-tax profit to RM17.55 million from RM9.66 million in FY2024.
Year-on-year, earnings per share climbed to 9.81sen.
Mohammed Sepuan said Indonesia’s reliance on tugboats and barges for inter-island transport, coupled with abundant natural resources, such as coal and nickel, underpins the country’s steady demand for vessels built by the group.
According to TAS management, the target for Indonesia’s domestic coal consumption for 2025 stands at 239.7 million tonnes, which is 32.2 per cent above that of 2024 while nickel’s role in electric-vehicle battery production enhances long-term volume potential.
According to Expert Market Research, Mohammed Sepuan said the Indonesian barge fleet market is projected to expand at a compound annual growth rate (CAGR) of 4.7 per cent between 2025 and 2034.
Strong fundamentals in the mining sector, particularly coal and nickle, together with rising energy demand, population growth and continued government in maritime infrastructure, are expected to drive long-term industry growth.
“The barge transportation market is expected to see sustained growth as global trade volumes rise, demand for bulk commodities increases, and more industries seek greener logistics solutions.
“According to Business Research Insights, the global tugboat market is estimated at approximately US$7.17 billion in 2025 and is projected to reach US$7.47 billion in 2026. It is expected to expand at a CAGR of about 4.15 per cent, reaching approximately US$10.34 billion by 2034 .By market segment, harbour tugboats account for 58 per cent, deep sea tugboats 24 per cent, river tugboats 13 per cent and others 5 per cent.
“Barges are an efficient and environmentally friendly mode of transport, capable of moving large volumes of cargo in fewer trips, thereby reducing both fuel consumption and carbon emissions.
“Although global decarbonisation initiatives and renewed interest in nuclear power present long-term headwinds for fossil-fuel-related maritime transport, Indonesia’s archipelagic geography and resilient bulk-freight flows continue to support the demand of transition is expected to be gradual, sustaining demand for tugboats and barges in the short to medium term,” said TAS management.
It added: “Given our specialisation in tugboat construction, strong client base in Indonesia, and a committed order book, we are well-positioned to capture market growth and deliver sustained revenue and profit expansion.
“At the same time, our proven track record in building a wide variety of vessels, from ferries to anchor handling tugs and support vessels, provide strategic flexibility to adapt to evolving demand and broaden revenue opportunities beyond the tugboat segment, thereby strengthening long-term shareholder value.”
TAS said to support the group’s growing order book, it has acquired several parcels of land to expand operational capacity by expanding the shipyard in Sibu Division.
“Working capital requirements are financed through a combination of internally generated funds and bank borrowings. For significant capital expenditure or business expansion, the group may consider raising funds through the equity market or exploring synergistic joint venture with reliable partners.”
On prospects going forward, Mohammed Sepuan said TAS group is well-positioned to benefit from resilient demand in Indonesia’s mining and transportation sectors.
“While the global environment remains uncertain, shaped by geopolitical tensions, trade challenges and the energy transition, the group’s order book, industry recognition and trust client relationship provide a solid foundation. We will continue strengthening operational capabilities, capturing opportunities and delivering long-term value to shareholders,” he added.
TAS subsidiary Tuong Aik Shipyard Sdn Bhd won the Matrade Best Exporter Award in Mid-Tier Company category at the Sarawak Export Day 2025.
