Asia/Pacific News
Bunker Vessels Boost ES Group Revenues
With the delivery of two bunker vessels, ES Group (Holdings) Ltd. (ES Group) of Singapore reports it nearly doubled its revenue to S$45.3 million ($35.6 million) in the first half of 2013 compared with the same period last year, but its profits fell to S$900,000 ($707,000) from S$2.7 million ($2.1 million).
The company said the delivery of Sea Tanker I and Sea Tanker II accounted for most of the increase in revenue, but the bunker vessels and other projects in the company's new building and conversion segments yielded relatively low profit margins.
The company, which focuses mainly on building, converting, and repairing tugs, barges, offshore support vessels (OSVs), cargo ships, and tankers, announced last year that it was ordering the two bunkering vessels as a way to enter the bunkering industry by owning and chartering vessels.
The two ships were delivered later than expected, arriving in March and June of this year.
"We have crossed a major milestone with the successful delivery of Sea Tanker I and Sea Tanker II which underscores our ability to carry out complete engineering, procurement, and construction projects, as we venture into our new vessel-owning and chartering business," CEO Christopher Low.
"As high crude oil prices continue to encourage offshore deep-sea exploration and Singapore being the preferred choice for rig builders, our Group intends to tap on this opportunity to grow our new building and conversion segment."
The company said it is looking for opportunities to expand its core business while also exploring the possibility of mergers and acquisitions.
