Asry posts record first quarter revenue
Manama, August 16, 2013
Asry, the Bahrain-based leading ship and rig repair yard in the Arabian Gulf, has posted the highest first-quarter revenues in the company's history.
With revenues of $54 million, the yard's first quarter of the financial year revenues have surpassed all previous revenues for the same period since its inception in 1977, said a report in the Gulf Daily News, our sister newspaper.
The surge is the latest in a momentum shift that has seen the yard's business accelerate away from the downturn of recent years, defying market forces, it said.
"We're pleased to see a response from our recent investment in expansion," said chief executive Chris Potter.
"By investing in creating a yard that now has the leading variety of facilities and capabilities, the market seems to be welcoming a fully diversified marine complex," he added.
The record revenues were nearly equally derived from the two main income sectors in the region, ship repair and offshore repair.
The reasons for the upsurge are threefold, the company said.
Firstly there is a reassuringly strong commitment from the major fleets of the region - including Kuwait Oil Tanker Company, Middle East Ship Management, United Arab Shipping Company, Red Sea Marine, Vela International Marine and more - who are clearly pleased with the yard's commitment to quality.
Secondly, a solid reputational position compared with neighbouring yards is suggested by the fact that there is very strong support from regional customers and international owners.
Thirdly, average contract values have exhibited an increase in 2013, with a 10 per cent approximate rise in first-quarter contract prices over the same period in 2012.
Other trends observed include an increase in business from the Singapore and German markets, which is adding to a satisfying mix in the nationality of vessels in the yard.
While the majority of revenues may be coming from regional customers, there is a broad range of international customers using the yard where possible, which suggests that once the global market recovery begins to take significant effect, Asry will be well positioned to benefit, the report said. - TradeArabia News Service