Jaya's earnings predicted to soar 41% to US$57.8m by 2014

See how its business transformed in 2 years.

According to CIMB, after a two-year transition, it sees that Jaya has successfully transformed its business from opportunistic vessel sales to recurring and sustainable income. 

CIMB noted chartering EBITDA had grown 43% yoy in FY12, and is set to grow by another 41% in FY13 to US$57.8m. Also, charter rates have increased due to higher-value incoming vessels and a focus on more complex time charters rather than simple bareboat charters. For e.g., Jaya’s average charter rate was US$13,987 in 3QFY13, up 42% yoy.

Here's more:

CEO Venkatraman Sheshashayee (Shesh) and CFO Chong Chow Pin participated in our Annual Asia Pacific Conference in Kuala Lumpur, where they met 10 institutional funds.

Investors found this old name familiar but lost track of the company when it underwent debt restructuring in FY09 – the result of its massive speculative newbuild programme, which was largely funded by short-term debt. Management articulated its strategy of transforming Jaya into a quality ship charterer with a shipyard focused on build-to-order and ship repairs.

Additionally, CEO Shesh provided his views on the health of the OSV sector (steady strides and continued revival expected) and how Jaya has indirectly benefited from Malaysia’s heightened E&P activities.