Chart of the Day: Take a look at massive net profit growth waiting for offshore vessels and accommodation

More than double the present net profit.

The offshore wave is coming as projects are expected to grow and be delivered in the next two years, and shipping and marine companies are expected to prepare themselves lest they miss out on hefty profits awaiting them.

Higher chart rates in the OSV (offshore supply vessels) and OA (offshore accommodation) segments and lower project costs in the T&I segment resulted in the sale of five vessels and consequently, margin expansion from 23% to 30.5%.

In a report by Maybank Kim Eng, despite flat revenue, gross profit grew from US$55.4m in 2011 to US$72.4m in 2013.

Maybank Kim Eng reveals that revenue over the last three years (FY11-13) was in the region of US$240m. OSV and OA revenue grew over this period, partly negated by declining T&I and HSER revenue. OSV and OA revenue growth was stimulated by a bigger fleet and higher average charter rates and utilisation.