JAKARTA: Group revenue of $96.7 million for the 3 months ended 30 September 2016 (“1Q FY2017”) was $20.7 million (27.3%) higher compared to the corresponding period in FY2016 (“1Q FY2016”).
Recognition of shipbuilding revenue is calculated based on project value multiplied by the percentage of completion (“POC”).
Shipbuilding revenue in 1Q FY2017 improved by 26.7% compared to the corresponding quarter mainly due to: higher POC achieved from the construction of 11 tugs, of which 4 units were completed in 1Q FY2017. Most of these tugs were at inception stage with minimal POC recognised in 1Q FY2016; partially offset by lower POC achieved from the construction of OSV and decrease in number of barges constructed, with one barge being completed in 1Q FY2017.
Shiprepair and conversion projects are meant to be short term in nature, resulting in revenue recognised only upon completion. With several of our shiprepair jobs being partial conversions, which take far longer than historic jobs to complete (i.e. may not complete within a quarter), revenue from shiprepair and conversions can now be lumpy.
Shiprepair and conversion revenue decreased marginally by $0.5 million (3.5%) to $14.3 million in 1Q FY2017 when compared to 1Q FY2016.
Shipchartering revenue was higher in 1Q FY2017 mainly due to higher contributions from operation of tug boats and barges with the commencement of large marine infrastructure projects in Singapore and South Asia in 4Q FY2016 (the “New Charter Contracts”).
Trade sales increased significantly in 1Q FY2017 due to increase in bunker sales and ad hoc services rendered in conjunction with the New Charter Contracts mentioned above.
Similar to shipbuilding, revenue from New Buildings is calculated based on project value multiply by POC.
Engineering revenue were higher in 1Q FY2017 mainly due to higher completion of orders for cutting systems and higher POC achieved for coupling system orders.
