HUBLINE BHD

http://www.thestar.com.my/Business/Business-News/2013/10/19/Hubline-on-verge-of-turnaround-Sarawakbased-shipper-also-plans-to-restart-OG-arm/?style=biz


http://www.thestar.com.my/Business/Marketwatch/Stocks/?qcounter=HUBLINE

 Hubline Bhd,  Sarawak-based shipping firm。Hubline is in talks with potential joint-venture partners to charter offshore supply vessels (OSV).  the company could opt to buy anchor handling tug supply (AHTS) ships, standby vessels and accommodation barges in anticipation of a surge in demand for O&G support services, backed by Petronas’ five-year, RM300bil investment。 The charter fees will be “more than enough” to offset the required investments.

Mid-sized, newbuild AHTS in the 10,000 brake horse power range and with DP2 capability carry a market value of US$20mil (RM63mil)

Hubline, which operates both container and dry bulk shipping。Hubline plied  the intra-Asian trade routes。

Hubline has whittled the average age of its fleet to 10 years. Twenty-eight of the group’s 30 vessels are wholly-owned, and two rented from a third party.

Half of its fleet is used for dry bulk and other half for container shipping.  Hubline may buy two new dry bulk ships within the next 12 months, on top of one that is on track to be delivered by year end.

For its container business, Hubline would only consider expansion by chartering, as this segment has yet to stabilise。 

Dry bulk vessels are fully-owned, Hubline will stick to chartering additional container ships so that it isn’t tied down in case the market takes a dive.

Container ships contribute to 25% of revenue, Hubline gets almost all of its earnings from dry bulk.  Dry bulk operations deliver a gross profit margin of about 20%. In contrast, the container shipping side is just breaking even。

Executive chairman and CEO Dennis Ling， Ling’s family, via Billion Power Sdn Bhd, controls 16.37% of Hubline, which also counts Lembaga Tabung Haji and the NFC Shipping Fund as long-term shareholders with interests of 3.68% and 3.82%, respectively.