SHIPOWNER Halim Mazmin Bhd turned in a net profit of RM27.95 million for its financial year ended December 31 2003, the highest since its listing on the second board of the Kuala Lumpur Stock Exchange in 1996.

 
Executive chairman Tan Sri Halim Mohammad attributed the profit, recorded on a turnover of RM131.2 million, to the overall better performance of the group's vessels and no dry docking of its ships in the fourth quarter of 2003.

 
In 2002, the company registered a net profit of RM27.70 million on a turnover of RM132.76 million.

 
Halim said yesterday the company's net profit during the year just ended was further boosted by the reduction in minority interests following the acquisition of a 40 per cent stake from a Taiwanese joint-venture partner, of two of its vessels in the first quarter of last year.

 
In March last year, Halim Mazmin acquired a 40 per cent stake each in Sterling Shipping Sdn Bhd and Splendid Shipping Sdn Bhd from Powick Marine (S) Pte Ltd.

 
Halim expects the company to record a better performance this year as shipping freight rates are firming up.

 
"I think the phenomenal increase in freight rates is something that shipowners have never dreamed of. This is the golden year in shipping.

 
Demand for vessels is increasing due to China's substantial import of iron and coal.

 
"Even analysts never predicted this phenomenal increase ... it took the market by storm," he said at a press conference after announcing the company's 2003 results in Kuala Lumpur.

 
In addition, Halim Mazmin's long-term charter will ensure that the company continues its impressive performance.

 
The company's borrowings of RM330 million are expected to be reduced gradually. Its gearing now stands at 1.8 times.

 
For the fourth quarter ended December 31 2003, Halim Mazmin's net profit rose 46 per cent to RM9.22 million from RM6.32 million in the previous corresponding period while revenue went up to RM33.81 million from RM33.23 million.

 
Halim Mazmin has nine vessels, of which four are container ships. Four others are product tankers while the remaining one is a bulk-cargo vessel.

 
Halim said the company is looking at acquiring more container vessels but only when the time is right.

 
The company has cash totaling about RM70 million.

Halim also said the company is negotiating with one of the top five global shipping firms for a new charter of two container vessels, Japan Senator and America Senator.