SHIPPING firm Halim Mazmin Bhd is scouting for two second-hand ships, either container carriers or product tankers, and hopes to purchase them in the final quarter of this year.

 
The company prefers second-hand vessels with good value as they can be used immediately.

 
Executive chairman Tan Sri Halim Mohammad said yesterday that Halim Mazmin has been in talks with several potential sellers but prices named have not been attractive.

 
Speaking to reporters after the company's annual general meeting in Kuala Lumpur yesterday, he said due to the rising costs of second-hand vessels now, Halim Mazmin will only decide on the acquisitions in the last quarter of this year.

 
"It will be prudent to wait and see where the market is going to be in the final quarter of this year," he said, adding that value of second-hand ships will soften when China slows down on its imports.

 
Halim said the company has a cash pile of more than RM100 million and will use its internal funds to buy the second-hand vessels.

 
He said the company is looking at second-hand container vessels, which is about US$35 million (US$1 = RM3.80) each, and product tankers with prices of about US$25 million each. He said the company will buy second-hand vessels with life span of another 10 to 15 years.

 
Halim Mazmin has nine vessels, of which four are product tankers, four container vessels and a bulk cargo carrier.

 
Halim expects the company to record better income for the current financial year ending December 31 2004 following the new charters it secured for its two container vessels, MSC Tasmania and MSC America, which commenced last week.

 
In addition, he said, the company's plans to purchase two second-hand vessels would add to its revenue generation capability.

 
Halim Mazmin has signed time charter agreements with the world's second-largest containership operator, Mediterranean Shipping Co S.A., for a two-year charter each for its container vessels, value at about RM29 million a year for each vessel.

 
For the year year ended December 31 2003, Halim Mazmin posted a net profit of RM27.95 million on a turnover of RM131.2 million.