KUCHING: The boss of Hubline Bhd, a shipping firm, has come to the defence of the company after its long-term rating was downgraded by Rating Agency Malaysia Bhd (RAM).
Executive chairman and chief executive officer Ling Li Kuang said the shipping firm, which specialises in servicing smaller ports, was able to meet its financial obligations.
He said Hubline had cash reserve of RM163mil as at Sept 30, 2010, never defaulted on any payments and was confident of redeeming all its Islamic bonds and commercial papers when they become due.
Ling said Hubline redeemed the first tranche of RM40mil two months ago.
“We have been able to meet all our financial obligations. The company has a considerable reserve,'' he added.
Ling said Hubline registered an unaudited pre-tax profit of RM10.1mil for the financial year ended Sept 30, 2010 compared with RM1.5mil in 2009. The group turnover increased to RM603mil last year, up from RM572mil in 2009.
“2009 was the worst year (in financial performance) since Hubline started its operations. The shipping industry had seen the worst and had bottomed out in 2009. Going forward, it can only get better,'' he added.
Ling was optimistic that the group's better performance last year could be sustained with the recovery of the shipping industry.
He said that as Hubline's rating remained supported by the group's extensive network and niche routes that gave it a competitive edge over its peers, its freight rates were, therefore, less volatile.
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