Investor Relations

Half Year Financial Statement And Dividend Announcement

Half-year financial statements on consolidated results for the six months ended 30 June 2002.

These figures have not been audited.

Group Figures

		Group			Company
		S$'000		%	S$'000		%
		2002	2001	Increase/ (Decrease)	2002	2001	Increase/ (Decrease)
1.(a)	Turnover	251,108	242,340	3.6	230,962	223,158	3.5
1.(b)	Cost of sales or classification as followed in the most recent audited annual financial statements	(238,928)	(229,069)	4.3	(226,756)	(216,106)	4.9
1.(c)	Gross profit	12,180	13,271	(8.2)	4,206	7,052	(40.4)
1.(d)	Investment income	0	0	n.m.	0	0	n.m.
1.(e)	Other income including interest income	370	1,533	(75.9)	180	1,421	(87.3)
2.(a)	Operating profit before income tax, minority interests, extraordinary items, interest on borrowings, depreciation and amortisation, foreign exchange gain/(loss) and exceptional items	13,652	15,800	(13.6)	2,283	5,427	(57.9)
2.(b)(i)	Interest on borrowings	(2,441)	(3,220)	(24.2)	(124)	(246)	(49.6)
2.(b)(ii)	Depreciation and amortisation	(7,970)	(7,492)	6.4	(2,358)	(2,443)	(3.5)
2.(b)(iii)	Foreign exchange gain/(loss)	(2,560)	2,712	n.m.	(2,292)	2,540	n.m.
2.(c)	Exceptional items (provide separate disclosure of items)	0	0	n.m.	0	0	n.m.

n.m. = not meaningful

		Group			Company
		S$'000		%	S$'000		%
		2002	2001	Increase/ (Decrease)	2002	2001	Increase/ (Decrease)
2.(d)	Operating profit/(loss) before income tax, minority interests and extraordinary items but after interest on borrowings, depreciation and amortisation, foreign exchange gain/(loss) and exceptional items	681	7,800	(91.3)	(2,491)	5,278	n.m
2.(e)	Income derived from associated companies (With separate disclosure of any items included therein which are exceptional because of size & incidence)	424	717	(40.9)	0	0	n.m.
2.(f)	Operating profit before income tax	1,105	8,517	(87.0)	(2,491)	5,278	n.m.
2.(g)	Less income tax (Indicate basis of computation)	(264)	(454)	(41.9)	(31)	(257)	(87.9)
2.(g)(i)	Operating profit/(loss) after tax before deducting minority interests	841	8,063	(89.6)	(2,522)	5,021	n.m.
2.(g)(ii)	Less minority interests	(41)	(48)	(14.6)	0	0	n.m.
2.(h)	Operating profit/(loss) after tax attributable to members of the company	800	8,015	(90.0)	(2,522)	5,021	n.m.
2.(i)(i)	Extraordinary items (provide separate disclosure of items)	0	0	n.m.	0	0	n.m.
2.(i)(ii)	Less minority interests	0	0	n.m.	0	0	n.m.
2.(i)(iii)	Extraordinary items attributable to members of the company	0	0	n.m.	0	0	n.m.

n.m. = not meaningful

		Group			Company
		S$'000		%	S$'000		%
		2002	2001	Increase/ (Decrease)	2002	2001	Increase/ (Decrease)
2.(i)(iv)	Transfer to/from Exchange Reserve	0	0	n.m.	0	0	n.m.
2.(i)(v)	Transfer to Capital Reserve	0	0	n.m.	0	0	n.m.
2.(i)(vi)	Transfer to Reserve Fund	0	0	n.m.	0	0	n.m.
2.(j)	Operating profit/(loss) after tax and extraordinary items attributable to members of the company	800	8,015	(90.0)	(2,522)	5,021	n.m.

n.m. = not meaningful

		Group Figures
		Latest period	Previous corresponding period
3.(a)	Operating profit [2(g)(i) above] as a percentage of turnover [1(a) above]	0.33%	3.33%
3.(b)	Operating profit [2(h) above] as a percentage of issued capital and reserves at end of the period	0.44%	4.30%
3.(c)	Earnings per ordinary share for the period based on 2(h) above after deducting any provision for preference dividends:-
	(i) Based on weighted average number of ordinary shares in issue	0.17 cents	1.73 cents
	(ii) On a fully diluted basis (To disclose the basis used in arriving at the weighted average number of shares for the purposes of (c)(i) above and to provide details of any adjustments made for the purpose of (c)(ii) above)	0.17 cents	1.73 cents
3.(d)	Net tangible asset backing per ordinary share based on existing issued share capital as at the end of the period reported on	39.89 cents	40.37 cents

3.(e) To provide an analysis of expenses based on their function within the group for
the current and previous corresponding period

	Group		Company
	Jun 2002	Jun 2001	Jun 2002	Jun 2001
	S$'000	S$'000	S$'000	S$'000
Marketing expenses	2,444	2,207	1,257	1,779
Administrative expenses	4,423	4,289	3,205	3,710

As a result of cost efficiency programmes, the Company managed to reduce marketing and administrative expenses. The increase in the marketing and administrative expenses of the Group is mainly because of new subsidiary set up in mid of 2001 that took over the functions of the Company's agent so that the Company does not pay commission expenses anymore to the previous agent.

Note to 3 (c)(i) and 3 (c)(ii) above: The basic earnings per share is calculated based on the profit set out in 2(h) above and the number of issued shares of 457,675,000 and 462,715,000 for FY 2002 and FY 2001 respectively.

Notes to 3 (d) above: The net tangible asset backing per ordinary share is calculated based on the number of shares of 457,675,000 and 462,715,000 for FY 2002 and FY 2001 respectively.

		Group			Company
Item 4 is not applicable to interim results		S$'000		%	S$'000		%
		2002	2001	Increase/ (Decrease)	2002	2001	Increase/ (Decrease)
4.(a)	Sales reported for first half year
4.(b)	Operating profit [2(g)(i) above] reported for first half year
4.(c)	Sales reported for second half year
4.(d)	Operating profit [2(g)(i) above] reported for second half year

5.(a) Amount of any adjustment for under or overprovision of tax in respect of prior years

Nil

5.(b) Amount of any pre-acquisition profits

Nil

5.(c) Amount of profits on any sale of investments and/or properties

Not Applicable

5.(d) Any other comments relating to Paragraph 5

Not Applicable


6. Segmental Results

a) By Activity

	Turnover		Profit before Tax and Interest
	2002	2001	2002	2001
	S$'000	S$'000	S$'000	S$'000
Container Shipping	230,541	222,663	(2,542)	4,363
Industrial Shipping	18,221	17,508	5,798	5,698
Forwarding and others *)	2,346	2,169	99	410
Total	251,108	242,340	3,355	10,471

b) By Geographical **)

Container Shipping, Forwarding and others.

	Turnover
	2002	2001
	S$'000	S$'000
Indonesia	105,410	110,222
South East Asia (excl. Indonesia)	37,693	41,624
Middle East and Indian Sub-continent	68,680	54,915
Far East (including China, Hong Kong)	19,830	15,410
Others	1,274	2,661
Total	232,887	224,832

*)	Including agency business after elimination of intra-group transaction.
**)	The Directors are of the opinion that it is inaccurate to analyse profit before tax and interest by geographical segments as certain costs cannot be meaningfully allocated to the different routes as the Group's vessels do not operate on fixed routes.

For the Industrial Shipping, charterers of the Group's vessels have discretion to operate within a wide trading area and are not constrained by a specific sea-route.


7.(a) Review of the performance of the company and its principal subsidiaries

Compared to the same period last year, the Group's turnover increased by about 3.6% to S$251 million. This was mainly due to an increase in volume of container lifting and Industrial Shipping activities as well as the effect of an implementation of new surcharges in certain ports. However, in certain ports, freight rates of the Company had dropped due to keen competition.

In spite of the slow recovery of the global economy, the volume of the Group's Container Shipping business grew moderately, contributed mainly by the Middle East, Indian Sub-continent and Far East regions.

Operational expenses of the Company increased due to higher stevedoring expenses, port and freight charges in line with the increase in volume and additional "war risk" insurance expenses for the vessels calling at Pakistan and the Middle East from the second half of 2001. Bunker expense also increased due to higher bunker prices since the beginning of 2002.

As a result of the Company's container vessels' space rationalization and cost efficiency programmes implementated at all of the Group's offices, operational expenses such as charter hire, container and administrative expenses decreased in the first half of 2002. Despite this, total operational expenses increased due to higher stevedoring expenses, port charges, freight charges, war risk insurance premium charges and bunker expenses as explained above.

The Company incurred a foreign exchange translation loss following the appreciation of Singapore Dollar against the US Dollar in the first half of 2002. Interest income decreased due to lower bank interest rates.

Due to the above, the Company recorded a loss of approximately S$2.5 million in the first half of the year. However, the Industrial Shipping has recorded S$3.5 million profit that helps the Group to contribute an overall profit.

The Industrial Shipping owns 10 vessels. Two of these are oil tankers which operate in the South East Asia region, transporting petrolum products, such as Gasoline, Kerosene, HSD & Avdur. Seven are chemical tankers operating within South East Asia and Far East carrying various petrochemical products such as Caustic soda, Phenol, Methanol, Xylene, Toluene, etc. One cement carrier primarily operates within Indonesia carrying Portland cement.

Income from associated company has decreased by S$ 0.29 million to S$0.42 million due to the slowdown in business and start up of business in some locations.

7.(b) Where a forecast, or a prospect statement, has been previously disclosed to shareholders, the issuer must explain any variance between the forecast or prospect statement and the actual results

Not applicable

7.(c) A statement by the Directors of the Company whether any item or event of a material or unusual nature, which would have affected materially the results of operations of the Group and Company, has occurred between the date to which the report refers and the date on which the report is issued. If none, to give a negative statement.

In the opinion of the Directors, no item, transaction or event of a material or unusual nature which would affect substantially the result of the operations of the Group and Company has occurred between the end of the first half accounting period to the date of this announcement.


8. A commentary at the date of this announcement of the competitive conditions of the industry in which the group operates and any known factors or events that may affect the group in the next reporting period

General shipping market conditions are expected to remain difficult in the light of an over supply of vessel space. In addition, stevedoring rates in certain Indonesian ports are expected to increase as announced by these port operators. The Group does not expect to achieve a complete recovery of the increase from its customers.

A further weakening of the US Dollar against the Singapore Dollar will have a negative impact on the Group's performance.

The Group will continue to aggressively pursue its cost efficiency programme.

The Group has also obtained additional stevedoring rebates from the Port of Singapore Authority for both laden and empty containers from the second half of 2002.

An additional new tanker in Industrial Shipping which commenced operations in August will contribute to the Group's performance in the second half year.

The Group had disposed of its investment in an associated company and realised a gain in the second half year. The disposal which was in line with the Group's expansion strategy will enable the Group to achieve better synergy.


9. Dividend

(a) Any dividend declared for the present financial period? None

(b) Any dividend declared for the previous corresponding period? None

(c) Total Annual Dividend (if applicable)

	Latest Year (S$'000)	Previous Year (S$'000)
Ordinary	0	1,373
Preference	0	0
Total:	0	1,373

d) Date payable

NIL

(e) Books closure date

NIL

(f) Any other comments relating to Paragraph 9

NIL


10.(a) Balance sheet

BALANCE SHEET AS AT 30 JUNE 2002

	The Group		The Company
	Jun 2002	Dec 2001	Jun 2002	Dec 2001
	S$'000	S$'000	S$'000	S$'000
Share capital and reserves
Share capital	45,768	45,768	45,768	45,768
Share premium	53,432	53,432	53,432	53,432
Accumulated profit	74,095	74,668	57,369	61,264
Capital reserve	267	267	-	-
Translation reserve	7,349	10,904	-	-
Capital redemption reserve	504	504	504	504
	181,415	185,543	157,073	160,968
Minority interest	1,159	484	-	-
	182,574	186,027	157,073	160,968
Represented by:
Fixed assets, net	168,894	182,447	24,592	26,999
Investment in subsidiaries	-	-	62,657	62,657
Investment in associated company	3,316	3,153	-	-
Other investment	63	63	54	54
Current assets	126,082	129,743	123,348	120,679
Current liabilities	(66,695)	(70,682)	(50,046)	(44,472)
Net Current Assets	59,387	59,061	73,302	76,207
Less:
Long-term liabilities	(49,086)	(58,697)	(1,335)	(2,783)
Due to subsidiary	-	-	(2,197)	(2,166)
	182,574	186,027	157,073	160,968

10.(b) Cash flow statement

	Jun 2002	Jun 2001
	S$'000	S$'000
Profit before tax	1,105	8,517
Adjustment:
Gain on disposal of fixed assets	(11)	-
Depreciation of fixed assets	6,565	6,270
Amortisation of deferred charges	1,405	1,222
Interest expense	2,441	3,220
Interest income	(324)	(1,266)
Share of results of associated company	(424)	(717)
Operating profit before working capital changes	10,757	17,246
(Increase) / decrease in current asset	5,561	(8,812)
Increase / (decrease) in current liabilities	4,650	(3,470)
Interest paid	(2,441)	(3,220)
Income tax paid	(147)	(654)
Net cash generated from operating activities	18,380	1,090
Interest income received	324	1,266
Purchase of fixed assets	(207)	(8,244)
Proceeds from disposal of fixed assets	135	-
Additions to deferred charges	(948)	(868)
Dividend received from associated company	27	26
Cash and cash equivalents subject to restriction	394	1,774
Net cash used in investing activities	(275)	(6,046)
Repayment of hire purchase liabilities	(211)	(46)
Proceeds from loans	-	21,659
Repayment of loans	(14,726)	(20,861)
Dividend paid	(1,373)	(2,869)
Proceeds from issue of shares to minority shareholders	645	152
Net cash used in financing activities	(15,665)	(1,965)
Net increase / (decrease) in cash and cash equivalent	2,440	(6,921)
Effect of exchange rate changes on cash and cash equivalents	55	130
Cash and cash equivalent at the beginning of period	38,665	54,514
Cash and cash equivalent at end of period	41,160	47,723

10.(c) Statement of changes in equity

Group FY 2002	Share capital	Share premium	Share redemption reserve	Capital reserve	Translation reserve	Accumulated profits	TOTAL
Balance as at 31 Dec 2001	45,768	53,432	504	267	10,904	74,668	185,543
Currency translation	-	-	-	-	(3,555)	-	(3,555)
Net profit for the period	-	-	-	-	-	800	800
Dividend paid	-	-	-	-	-	(1,373)	(1,373)
Balance as at 30 Jun 2002	45,768	53,432	504	267	7,349	74,095	181,415
Group FY 2001	Share capital	Share premium	Capital reserve	Translation reserve	Accumulated profits	TOTAL
Balance as at 31 Dec 2000	46,272	53,432	267	5,724	71,662	177,357
Currency translation	-	-	-	3,807	-	3,807
Net profit for the period	-	-	-	-	8,015	8,015
Dividend paid	-	-	-	-	(2,869)	(2,869)
	-	-	-
Balance as at 30 Jun 2001	46,272	53,432	267	9,531	76,808	186,310
Company FY 2002	Share capital	Share premium	Share redemption reserve	Accumulated profits	TOTAL
Balance as at 31 Dec 2001	45,768	53,432	504	61,264	160,968
Net Profit for the period	-	-	-	(2,522)	(2,522)
Dividend paid	-	-	-	(1,373)	(1,373)
Balance as at 30 Jun 2002	45,768	53,432	504	57,369	157,073
Company FY 2001	Share capital	Share premium	Accumulated profits	TOTAL
Balance as at 31 Dec 2000	46,272	53,432	64,563	164,267
Net profit for the period	-	-	5,021	5,021
Dividend paid	-	-	(2,869)	(2,869)
Balance as at 30 Jun 2001	46,272	53,432	66,715	166,419

10.(d) Explanatory notes that are material to an understanding of the information provided in 10.(a), (b) and (c) above

The subsidiaries under the Industrial Shipping business are using US Dollar as their functional currency. The financial statements of the subsidiaries were consolidated to the Group in June 2002 using lower exchange rate of Singapore Dollar as compared with that in December 2001 due to the Singapore Dollar appreciation against US Dollar. As a result, the translation reserve as stated in the Balance Sheet report under item 10(a) decreased.

In the second half of 2001, the Company bought back 5,040,000 ordinary shares of $0.10 each by way of market purchases pursuant to the Share Buyback Mandate obtained at the extraordinary general meeting held on 16 August 2001. The share bought back have been cancelled and the nominal value of these shares have been credited to the capital redemption reserve of the Company. As a result, the issued and paid-up share capital of the Company was reduced from S$ 46,271,500 comprising 462,715,000 shares of S$0.10 each to S$45,767,500 comprising 457,675,000 ordinary shares.


11. Details of any changes in the company's issued share capital

There is no changes in the company's issued share capital in the current financial year.


12. The group's borrowings and debt securities as at the end of the financial period reported on, and comparative figures as at the end of the most recently announced financial statements

(a) Amount repayable in one year or less, or on demand

As at 30/06/2002		As at 31/12/2001
Secured	Unsecured	Secured	Unsecured
S$ 13.88 mil	0	S$ 22.17 mil	0

(b) Amount repayable after one year

As at 30/06/2002		As at 31/12/2001
Secured	Unsecured	Secured	Unsecured
S$ 49.09 mil	0	S$ 58.70 mil	0

(c) Any other comments relating to Paragraph 12

The amount repayable in one year or less as stated in item 12(a) above decreased mainly due to full early repayment of existing loan of a vessel. The early repayment was made in relation to changing of the flag of the said vessel. The previous loan has subsequently been replaced by a new loan which was drawn down in the beginning of second half of 2002.


13. A statement that the same accounting polices and methods of computation are followed in the financial statements as compared with the most recent audited annual financial statements. Where there have been any changes or departure from the accounting policies and methods of computation, including those required by an accounting standard, this should be disclosed together with the reasons for the change and the effect of the change

During the financial period, the Group adopted Statements of Accounting Standard ("SAS") 12 (2001) - Income taxes, which became effective for financial statements covering periods beginning on or after 1 April 2001.

Under SAS 12 (2001), deferred tax is now recognised for all taxable temporary differences. Previously, deferred tax was provided on account of timing differences only to the extent that a tax liability or asset was expected to materialise in the foreseeable future. Arising from the adoption of SAS 12 (2001), the Group commenced to recognise deferred tax assets for all deductible temporary differences, when it is probable that sufficient taxable profits will be available against which the deductible temporary differences can be utilised.

The adoption of SAS 12 (2001) does not have any impact to the comparative figures of the financial year ended 31 December 2001 because there is no such transaction in the Group.

The adpotion of SAS 12 (2001) is not expected to have a material impact on the financial statements for the financial year ended 31 December 2002.

Other than the above, there is no changes in accounting policies and methods of computation in the financial statements as compared with the last audited annual financial statements.