• 
• 

Published on March 27, 2008

Managing director Warawan Nganthavee said yesterday that all Asian Marine clients are foreigners and this condition was acceptable to them.

Warawan also expressed her concern over the increase in the global prices of iron, the major raw material to build and convert ships.

"The weak US currency and high iron prices are the key factors that impact the company's earnings. However, we have already diversified risk in order to maintain business growth," she said.

To counter the problem of higher iron prices, Asian Marine has signed contracts to purchase iron on the same day the company signed shipbuilding or conversion contracts to insulate itself from market price fluctuations, she said.

Warawan expects Asian Marine to generate revenue of Bt1.05 billion this year, a 50-per-cent increase from Bt702 million last year. About Bt500 million would come from three ongoing shipbuilding projects - the container ship Gati, the offshore ship Azzam and 50-metre support vessels - while other revenue would come from ship conversion.

"There is high demand for ships in the international market," Warawan said. "The shipbuilding industry will have a bright outlook for at least five years. We have a chance to grow."

At present, 60 to 65 per cent of the company's revenue comes from shipbuilding with the remainder from ship repair. However, the gross margin for ship-building in general is under 20 per cent, lower than ship repair, which is over 20 per cent. So the company's gross margin this year will decline from the previous year to 15 to 17 per cent, said Warawan.

She said that Asian Marine Services is now negotiating with clients to build container or offshore ships. The company expects to conclude the deals soon and expects to sign contracts to build at least two ships this year. Asian Marine is also joining with Japanese partners for shipbuilding subcontracts.

The company plans to build a palm-oil transport ship next year in keeping with the global trend to focus more on alternative energy. This project is expected to contribute a gross margin higher than ordinary shipbuilding, Warawan said.

Nalin Viboonchart

The Nation