Harbour-Link sees turnaround in the fourth quarter earnings
KUCHING: Harbour-Link Group Bhd (Harbour-Link) registered a net profit of RM11.93 million in the fourth quarter of financial year 2014 (4QFY14) compared with a net loss of RM13.59 million in 4QFY13.
The company in a filing to Bursa Malaysia previously said its earnings for financial year 2014 (FY14) jumped more than five-fold to RM32.66 million compared with RM5.09 million in FY13.
Correspondingly, Harbour-Link said its revenue for FY14 grew 9.1 per cent to RM461.36 million but turnover for 4QFY14 dipped 13 per cent year-on-year (y-o-y) to RM103.17 million.
The group in its notes accompanying financial results said it recorded lower profit before tax in FY13 due to an one-off impairment of intangible assets amounting to RM25.56 million.
On segmental performance, Harbour-Link’s its shipping, marine services and other divisions recorded a decrease in revenue and profit before tax (PBT).
The company explained that the lower revenue and PBT was due to the adverse market condition in container shipping agency services.
On the bright side, Harbour-Link said its logistics services and equipment rental division posted higher revenue and PBT due to additional contracts secured for project logistics.
In addition, Harbour-Link noted that its engineering contract division also registered higher revenue and PBT.
The company attributed the increased revenue and PBT due to significant billng of its ongoing projects. Looking ahead, Harbour-Link said the group expects the domestic and regional shipping industries to continue to grow at a moderate rate.
The company believed that with its current fleet of vessels and expertise, the company will continue to pursue future opportunities to improve the financial performance of the group.
Harbour-Link noted that its logistics services and equipment rental division is expected to remain challenging due to the competitive operating environment as well as increase in operating costs.
Nonetheless, the company said it will continue to focus on providing value-added total logistics solutions. As for the group’s engineering division, Harbour-Link foresees the division to contribute positively to its financial performance in FY15.