ASL unveils S$30m orders for 2 standby safety vessels

Current orderbook stands at $528m.

According to CIMB, at 32% of FY12 forecast (1H at 69%), 2Q core earnings were 52% ahead of expectations, and broadly in line with consensus. 

The positive variance stems from higher-than-expected gross margins across all segments. 

2Q13 core earnings jumped 73% yoy on robust growth from all segments. This is despite the S$2.5m doubtful debt allowance (ASL has now provided for all bad debts owed by Indonesian ship operator, Berlian Laju) and higher admin costs of S$1m due to fees related to the acquisition of Dutch company, Vosta LMG International B.V (Vosta).

Otherwise, ASL would have reported core earnings of S$14m (+170% yoy). 

Here's more from CIMB

YTD, ASL has secured ~S$30m of orders (FY13 order expectation: S$250m) for two standby safety vessels. The order book stands at S$528m (1/3 to be recognised for 2H).

ASL is not in a hurry to secure orders as its slots are only free from 2H13. On order pipeline, management sees heightened interests for 8,000-12,000 bhp AHTS and Dive Support Vessels; but slower uptake for PSVs.

Management is fairly confident that it can minimise Vosta’s losses (lost ~€7m-8m on €100m revenue last FY) through cost-cutting, restructuring and integration synergies; and turn the company around in the next 4-5 qtrs.

Vosta’s numbers would be consolidated from the next quarter. Its impact on the bottomline should be marginal.