ASL Marine Holdings Unveils Robust Turnaround, Secures \$132 Million Term Loan, Eyes Higher Profitability and Dividend for FY2025

Singapore, October 2025 – ASL Marine Holdings Ltd., a mainboard-listed, vertically-integrated marine services provider, has announced a substantial turnaround in its business with significant financial and operational milestones for the financial year ended 30 June 2025 (FY2025). The Group’s revitalisation efforts, successful refinancing, and resumption of dividend payments could have a material impact on its share price, offering renewed optimism to investors and shareholders.

Key Financial Highlights: Strong Revenue, Surging Profits, and Positive Cash Flow

• FY2025 Revenue: S\$350.1 million, marginally higher than FY2024, driven by increased shipbuilding activity despite softer ship chartering and repair segment revenues.
• Gross Profit: S\$60.7 million, up 32.8% year-on-year, with group-wide improvement across all segments. Ship repair, conversion, and engineering services contributed a dominant 72.1% of overall gross profit, benefiting from enhanced yard capacity and higher-margin projects.
• Gross Profit Margin: Improved to 17.3% (from 13.1% in FY2024), with ship repair boasting a 25.8% margin.
• Net Profit: Soared to S\$14.7 million, a substantial 291% increase over FY2024, attributed to better margins despite higher administrative and operating expenses.
• Adjusted EBITDA: S\$83.7 million, up 2.4%, with a five-year average of S\$64 million, underlining the resilience of core operations.
• Operating Cash Flow: Net cash flow from operations was S\$45.8 million, maintaining a five-year average of S\$54 million.

Balance Sheet Reinforced by Successful S\$132 Million Term Loan Refinance

In a pivotal financing move, ASL Marine secured a new five-year term loan (“Club Deal 2” or CD2) of S\$132 million from Singapore’s top three local banks in March 2025. This facility, collateralised by S\$268 million of market-valued assets, comes with reduced interest rates, reflecting strong lender confidence in the Group’s trajectory and business fundamentals.

Key Features and Implications:

• Scheduled repayment of up to 50% of the loan principal over five years, based on a 10-year amortisation profile.
• The remaining 50% is to be repaid through vessel sales, with targeted proceeds of S\$52.6 million planned for FY2026 and FY2027.
• A major overseas charterer holds an option to acquire a Platform Support Vessel for S\$23 million in FY2027.
• Planned further vessel disposals could materially reduce outstanding debt, lower financing costs (which averaged S\$23 million/year over the last two years), and free up cash for reinvestment or distribution.

This accelerated deleveraging strategy is expected to improve profitability, reduce risk, and potentially enhance shareholder value via a stronger balance sheet.

Proposed Dividend Signals Renewed Shareholder Commitment

Marking a return to growth, the Board has proposed a dividend of 0.2 Singapore cents per share for FY2025, underlining improved financial performance and management’s commitment to reward shareholders. This move may be seen as a signal of confidence in continued profitability and cash generation, potentially supporting the share price.

Operational Excellence: Integrated Marine Services Model Driving Growth

• Ship Repair, Conversion & Engineering: Expanded Singapore yard capacity with a new floating dock in 2024. Over 50% of customers are repeat clients, reinforcing revenue stability. Plans are underway to acquire a third floating dock to further boost capacity.
• Ship Chartering: Fleet of 181 vessels, mainly deployed across the Asia Pacific, supports diverse marine projects. Ongoing Fleet Optimization Program (FOP) aims to upgrade fleet efficiency and align assets with evolving market demand.
• Shipbuilding: Both Singapore and Indonesian yards are equipped with advanced infrastructure, servicing a broad spectrum of vessel types. The shipbuilding segment focuses on standard and generic designs (tugs, barges, workboats), offering shorter delivery cycles and lower capital intensity, thus reducing project risk.

Strategic Focus & Growth Drivers

• ASL Marine expects continued business inflow from marine infrastructure, oil & gas, offshore renewable energy, and bulk cargo transhipment sectors, especially in Asia Pacific and South Asia.
• Management is prioritising contracts with manageable risk profiles and shorter delivery times, further protecting margins.
• Singapore’s S\$100 billion coastal protection initiatives and the Group’s strategic proximity to the Straits of Malacca (one of the world’s busiest shipping routes) are set to underpin continued demand for marine repair services.
• Workforce strength is robust: 500 employees in Batam, 300 in Singapore.

Financial Position and Risk Management

• Total assets stood at S\$498.1 million as of 30 June 2025, with a healthy split between current (53.1%) and non-current (46.9%) assets.
• Net cash flow from operations remains strong at S\$45.8 million for FY2025.
• Debt reduction remains a key focus, with non-current liabilities (mainly term loans) at S\$151.0 million, set to decline further with the vessel sale program.

Key Takeaways for Investors: What Could Move the Share Price?

1. Successful refinancing at lower rates and accelerated deleveraging plan could boost profitability and reduce risk, supporting a re-rating of the shares.
2. Significant jump in net profit (+291%) and margin expansion demonstrate a successful turnaround and operational efficiency gains.
3. Resumption of dividends signals management confidence and shareholder alignment—often a catalyst for institutional buying.
4. Ongoing vessel sales and cost reduction could provide upside surprise to future earnings and cash flow.
5. Exposure to large-scale, long-term marine repair and infrastructure projects (e.g., Singapore coastal protection) anchors future revenue visibility.

Summary

• ASL Marine Holdings appears to be at an inflection point, with revitalised operations, a much stronger balance sheet, and clear growth strategies focused on its core competencies.
• Shareholders should watch for execution on vessel disposals, further reductions in borrowing costs, and sustained profitability—all of which could have a material, positive impact on the company’s share value in the months ahead.

Disclaimer: This article is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell any securities. Investors should conduct their own due diligence and consult with financial advisors before making investment decisions. Forward-looking statements are subject to risks and uncertainties, and actual results may differ materially from projections.

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