Published on: Saturday, August 20, 2011
Labuan: Labuan Shipyard Engineering Sdn Bhd (LSE) is finally sailing out of red ink after a decade rolling in turbulent waves of troubled shipyard business.
"We are seeing light at the end of the tunnel and forecast a revenue of RM200 million by end of this year. The finance people had targeted RM330 million, but I prefer to be more modest," said its Chief Executive Officer, Mohd Azman Nasir.
Speaking at the breaking of fast ceremony with 300 LSE employees and invited guests, Azman said based on his modest figure, LSE would be making a profit of RM10 million.
On jobs in hand, he said the shipyard would be building a RM100 million platform supply vessel (PSV) and it would be the first one to be equipped with diesel electronic engine.
The vessel for the oil and gas industry is expected to be completed by March 2013.
The shipyard was also looking forward for jobs worth RM80 million at the Oil and Gas Terminal in Kimanis.
Sapura Crest, the company which now holds 50 per cent stake in LSE, had also ordered for two work boats costing RM170 million.
"These are clear signs that LSE is growing but still there is a good distance before the shipyard, which was previously called Sabah Shipyard, could reach the goal of its glory days," said Azman.
He said in 2004 LSE merely had 197 workers but today it had almost doubled to 350 and he was pleased that a number of former workers of the yard had returned to Labuan to work for LSE.
Azman was confident that with the dedication of the experienced workers and the available facilities at the yard, LSE could continue to march forward.
He said for the past five years, LSE faced challenging times with revenues declining progressively from RM55 million but the "recovery came last year."
LSE took over the shipyard in 2004 from Danaharta and is a subsidiary of Realmild (M) Sdn Bhd.
The shipyard after operating profitably sank under heavy debts of RM700 million.