Halim Mazmin in joint venture talks with foreign parties

09 June 2005

SHIPOWNER Halim Mazmin Bhd, flush with more than RM320 million cash after disposing of four vessels, is in talks wild a few foreign parties to form strategic partnerships for possible shipping activities in some Gulf states and African countries.
 
Executive chairman Tan Sri Halim Mohammad said he hopes the formation of the proposed joint ventures will materialise by the end of this year.
 
"There are growing opportunities for our vessels. We are positioning our smaller vessels elsewhere where there is demand. We are looking at forming joint ventures." he said after the company's annual general meeting in Kuala Lumpur yesterday.
 
Halim Mazmin recently sold product tanker Meridian Sun, container vessels MSC America and MSC Tasmania, and bulker Meridian Polaris. The company is now left with two container vessels and three product tankers.
 
Halim said the company is looking at acquiring ships and new businesses. However, his plans to acquire ships will have to be put on hold as prices of second-hand ships are considerably high.
 
"If we do not add on (vessels), our revenue will fall. We will continue to remain focused on shipping and seek to add vessels but only the right ones, at the right time and the right price," he said.
 
Halim said the company is now operating with a reduced number of vessels and this means the total revenue could be reduced for its financial year 2005.
 
However, he said, Halim Mazmin will continue to benefit from the long-term charters of its vessels and a continued firm freight market.
 
For its financial year ended December 31 2004, the company's turnover declined to RM127.1 million from RM131.2 million due to the sale of the three vessels for the year under review.
 
Halim also urged the Government to create opportunities for Malaysian shipping lines in the wake of resilience shown by them to compete in the international shipping market.
 
He said there is a need to especially coordinate the huge demand for shipping by government-linked companies and channel this to Malaysian shipping companies with proven track records.

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