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Proforma Full Year Financial Statement And Dividend Announcement

Full-year financial statement on consolidated results for the year ended 31/12/2001.

These figures have not been audited.

		Group			Company
		S$'000		%	S$'000		%
		2001	2000	Change	2001	2000	Change
1.(a)	Turnover	497,583	450,923	10.3	458,576	425,487	7.8
1.(b)	Investment income	0	0	n.m	0	0	n.m
1.(c)	Other income including interest income	2,182	4,035	(45.9)	1,896	3,479	(45.5)
2.(a)	Operating profit before income tax, minority interests, extraordinary items, interest on borrowings, depreciation and amortisation, foreign exchange gain/(loss) and exceptional items	25,529	35,930	(28.9)	3,823	24,062	(84.0)
2.(b)(i)	Interest on borrowings	(6,118)	(5,345)	14.5	(439)	(1,105)	(60.3)
2.(b)(ii)	Depreciation and amortisation	(15,445)	(10,993)	40.5	(5,111)	(4,110)	24.4
2.(b)(iii)	Foreign exchange gain/(loss)	2,984	2,149	38.9	2,832	2,034	39.2
2.(c)	Exceptional items	0	0	n.m	0	0	n.m
2.(d)	Operating profit before income tax, minority interests and extraordinary items but after interest on borrowings, depreciation and amortisation, foreign exchange gain/(loss) and exceptional items	6,950	21,741	(68.0)	1,105	20,881	(94.7)

n.m - not meaningful

		Group			Company
		S$'000		%	S$'000		%
		2001	2000	Change	2001	2000	Change
2.(e)	Income derived from associated companies	911	802	13.6	0	0	n.m
2.(f)	Less income tax	(856)	(999)	(14.3)	(358)	(705)	(49.2)
2.(g)(i)	Operating profit after tax before deducting minority interests	7,005	21,544	(67.5)	747	20,176	(96.3)
2.(g)(ii)	Less minority interests	46	(25)	n.m	0	0	n.m
2.(h)	Operating profit after tax attributable to members of the company	7,051	21,519	(67.2)	747	20,176	(96.3)
2.(i)(i)	Extraordinary 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
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 after tax and extraordinary items attributable to members of the company	7,051	21,519	(67.2)	747	20,176	(96.3)

		Group Figures
		Latest year	Previous year
3.(a)	Operating profit [2(g)(i) above] as a percentage of turnover [1(a) above]	1.41%	4.78%
3.(b)	Operating profit [2(h) above] as a percentage of issued capital and reserves at end of year	3.80%	12.13%
3.(c)	Earnings per ordinary share for the year based on 2(h) above after deducting any provision for preference dividends:-
3.(c)(i)	Based on existing issued share capital	1.53 cents	4.65 cents
3.(c)(ii)	On a fully diluted basis	1.53 cents	4.65 cents
3.(d)	Earnings per share based on 2(j) above:-
	(i) Based on existing issued share capital	1.53 cents	4.65 cents
	(ii) On a fully diluted basis	1.53 cents	4.65 cents
3.(e)	Net tangible asset backing per ordinary share	40.51 cents	38.33 cents

Note to 3(c) and 3(d) above: For comparison purposes, the basic earnings per share is calculated based on the profit set out in 2(h) and 2(j) above and the weighted average number of issued shares of 462,715,000 and 461,722,888 for 2000 and 2001 respectively.

Note to 3(e) above : For comparison purposes, the net tangible asset backing per ordinary share is calculated based on the number of shares of 462,715,000 and 457,675,000 for 2000 and 2001.

		Group			Company
		S$'000		%	S$'000		%
		2001	2000	Change	2001	2000	Change
4.(a)	Sales reported for first half year	242,340	200,471	20.9	233,158	190,120	22.6
4.(b)	Operating profit [2(g)(i) above] reported for first half year	8,063	12,350	(34.7)	5,021	11,614	(56.8)
4.(c)	Sales reported for second half year	255,243	250,452	1.9	225,418	235367	(4.2)
4.(d)	Operating profit/(loss) [2(g)(i) above] reported for second half year	(1,058)	9,194	n.m	(4,274)	8,562	n.m

n.m - not meaningful


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

Overprovision of tax for the Group in respect of prior years is S$ 290,714

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

NIL

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

NIL

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

NIL


6. Segmental Results

a) By activity

	Turnover		Profit before Tax and Interest
	2001	2000	2001	2000
	S$'000	S$'000	S$'000	S$'000
Container Shipping	457,721	424,982	(124)	18,893
Industrial Shipping	35,756	23,631	11,304	5,288
Forwarding and others *)	4,106	2,310	323	483
Total	497,583	450,923	11,503	24,664

b) By Geographical **)

Container Shipping, Forwarding and others.

	Turnover
	2001	2000
	S$'000	S$'000
Indonesia	212,871	223,310
South East Asia (excl. Indonesia)	82,527	85,579
Middle East and Indian Sub-continent	124,192	82,702
Far East	37,625	13,853
Others	4,612	21,848
Total	461,827	427,292

*)

Including agency business after elimination of intra-group transaction.

**)

The Directors believe it could be inaccurate to analyse profit before tax and interest by geographical segment because certain cost cannot be meaningfully allocated to the different routes as the vessels do not operate on fixed routes. For the Industrial Shipping, charterers of the Group's tanker have the 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

The Group's turnover in year 2001 increased by about 10% to S$ 498 million. This is mainly due to increase in container volume and some surcharges, additional tanker and stronger US Dollar against Singapore Dollar currency.

Despite the weakening of the global economy, which was further worsened by the events of September 11, the Group's container shipping business recorded a moderate growth in volume in the year 2001. The increase in volume came especially from the Middle East, the Indian Sub-continent (ISC) and China. There was an increase in demand in the Middle East and ISC area. While for the China service, new ports of call were added.

The turnover of Container Shipping rose to S$ 458 Million, which included surcharges amounting to S$ 96 Million. The surcharges increased by 63 % over the previous year. The increase in surcharges was mainly due to increase in volume, full-year impact of Indonesia Port Surcharge (IPS) and war risk surcharges in Sri Lanka, the Middle East and Pakistan. These surcharges are for cost recovery and therefore did not have significant impact to the profitability.

However, the average freight rates excluding the surcharges dropped by about 6 % in the year 2001 over the previous year.

In Industrial shipping, three tanker ships that were delivered in May, July and November 2000 had a full year impact in the year 2001, and thus contributed positively to the Group's turnover. Another tanker was delivered in January 2001, which also contributed to higher turnover.

Operational expenses of the Group increased mainly due to increase in charter hire expenses, freight charges and Indonesian port charges.

The Group's after tax profit decreased by 67% as a result of decrease in freight rate, increase in operating expenses, depreciation and amortization, and a reduction of interest income.


7.(b) A statement by the Directors of the Company on 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 include a negative statement.

In the opinion of the Directors, no item, transaction or event of material and unusual nature has arisen between the period of 31 December 2001 and the date of this announcement that would have affected substantially the result of the Group and the Company.


8. Commentary on current year prospects

In the year 2001, there was a slowdown in global economy, which was then further aggravated by the events of September 11. This had a negative impact to the cargo flow in Asia. Despite this, the Group's container volume grew moderately.

In the current year, the global economy is anticipated to stay weak and the recovery remains uncertain. The cargo volume is expected to grow moderately, however, freight rates in certain routes will still be under pressure.

Bunker price dropped after September 2001. However, recently the bunker price has started to increase. It is uncertain whether such upward trend will continue. Hence at the time of this announcement it is difficult to estimate the trend of the bunker price, for the rest of the year.

The year 2002 has been anticipated to be a very challenging one. However, the Group has commenced taking several actions in achieving cost efficiency and such programs will be continued in future. Some of these programs are outlined as follows.

Rationalization of supply of container vessels' space through joint services and slot swap arrangements with partners is being intensified. Every route is more closely reviewed and as and when necessary, the vessel space for any particular route will accordingly be adjusted.

As a result of re-negotiations with ship owners, the Group will get lower rate of charter hire for some of its chartered ships for the current year. The lower rates have been effective from January 2002.

In order to improve container cost efficiency, container depot costs in some locations have been renegotiated and the container rental rates have been reduced. Container utilization has also been improved and there will be ongoing efforts to achieve continuous improvement in this area. The Group is in the process of buying containers to replace some of the leased units, as at the current situation the purchase of containers will reduce the unit container cost for the Group.

Renegotiating the existing agents' remuneration and consolidating agency offices have reduced agency costs in some locations. These programs will be extended to more locations.

Although the market conditions are anticipated to be very difficult in the year 2002, the Group is confident of facing the challenges ahead. The continuing cost efficiency programs as outlined above are expected to give benefits to the Group in the current year. Barring any unforeseen circumstances, and assuming the freight rates do not deteriorate further, the Directors expect the Group's result for the current year to be profitable.


9. Dividend

(a) Present Period

Name of Dividend	Final
Dividend Type	Cash
Dividend Rate	0.30 cents per ordinary share less tax
Par value of shares	10 cents
Tax Rate	0%

(b) Previous Corresponding Period

Name of Dividend	Final
Dividend Type	Cash
Dividend Rate	0.62 cents per ordinary share less tax
Par value of shares	10 cents
Tax Rate	0%

(c) Total Annual Dividend

	Latest Year (S$'000)	Previous Year (S$'000)
Ordinary	1,373	2,868.8
Preference	0	0
Total:	1,373	2,868.8

(d) Date payable

refer to para 9(a)

(e) Books closing date

Notice of closure of books for determining shareholders' entitlement to the dividend together with the date of dividend payment will be announced at a later date.

(f) Any other comments relating to Paragraph 9

The dividend tax for the final dividend mentioned in para 9(a) above is 0% as the Company derives exempt profits under the AIS incentive and exempt shipping income under section 13A of the Singapore Income Tax Act subject to finalisation by the Inland Revenue Authority of Singapore.

The directors recommend a final dividend of 0.30 cents a share in respect of the financial year ended 31 December 2001 subject to approval by shareholders at the forthcoming Annual General Meeting to be convened.


10. Balance sheet

BALANCE SHEETS AS AT 31 DECEMBER 2001

	The Group		The Company
	2001	2000	2001	2000
	S$'000	S$'000	S$'000	S$'000
Share capital	45,768	46,272	45,768	46,272
Share premium	53,432	53,432	53,432	53,432
Accumulated profits	73,158	70,152	61,264	64,562
Capital reserve	267	267	-	-
Translation reserve	12,288	7,234	-	-
Capital redemption reserve	504	-	504	-
	185,417	177,357	160,968	164,266
Minority Interests	477	275	-	-
	185,894	177,632	160,968	164,266
Represented by
Fixed assets, net	182,448	176,096	26,999	31,152
Investment in subsidiaries	-	-	62,657	62,883
Investment in associated company	3,249	2,686	-	-
Other Investment	63	63	54	54
Current assets	129,749	126,567	120,679	122,500
Current liabilities	(70,501)	(70,837)	(46,638)	(47,235)
Net current assets	59,248	55,730	74,041	75,265
Less:
Long-term liabilities	(59,114)	(56,835)	(2,783)	(5,088)
Other non-current liabilities	-	(108)	-	-
	185,894	177,632	160,968	164,266

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

During the financial year, 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 ordinary shares of $0.10 each to S$45,767,500 comprising 457,675,000 ordinary shares. The total amount incurred for the share buyback was S$1,176,679.


12. Comparative figures of the group's borrowings and debt securities

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

As at 31/12/2001		As at 30/06/2001
Secured	Unsecured	Secured	Unsecured
S$ 22.17 mil	0	S$ 15.68 mil	0

(b) Amount repayable after one year

As at 31/12/2001		As at 30/06/2001
Secured	Unsecured	Secured	Unsecured
S$ 58.70 mil	0	S$ 72.20 mil	0

(c) Any other comments relating to Paragraph 12

NIL


13. Change in accounting policies and related prior period adjustments

(a) Foreign currency transactions and balances

Subsidiaries under the Industrial Shipping business changed it's accounting policy relating to foreign currency transactions and balances to recognise United States dollar as the functional currency retrospectively from 1st January 2001. In the opinion of the directors of the Company, this better reflects the nature of the operations of the subsidiaries and is also in line with the practice by some other shipping companies.

Transactions in other currencies during the financial year are converted to United States dollars at the rates of exchange prevailing on the transactions dates. Monetary assets and liabilities denominated in other currencies are translated into United States dollars at the rates of exchange prevailing at the balance sheet date. All exchange differences arising are taken to the profit and loss accounts.

For the purpose of consolidating the financial statement to the Group, the financial statements of the subsidiaries prepared in United States dollar are translated into Singapore dollars on the following basis:

Share Capital :	Historical rate
Other balance sheet items :	Closing rate at balance sheet date
Profit and loss accounts :	Average rates for the financial year

The exchange difference arising on the translating of the opening net assets are taken directly to the translation reserve.

(b) Dividends

The Group changed its accounting policy retroactively from recognising dividend proposed or declared after the balance sheet date as a liablity to disclosing such dividends as a subsequent events in accordance with SAS 10, Events after the Balance Sheet Date. As a result of the change, revenue reserve of the Group as at 1st January 2001 was increased by $2,868,833.

The comparative figures for the period ended 31 December 2000 had been restated for the effects of the above mentioned changes as follows:

	Group		Company
Profit and Loss	Restated	Previously reported *)	Restated	Previously reported *)
	S$'000	S$'000	S$'000	S$'000
2(b)(ii) Depreciation and amortisation	10,993	10,372	no change	no change
2(b)(iii) Foreign exchange gain /(loss)	2,149	906	no change	no change
2(j) Operating profit after income tax and extraordinary items attributable to members of the Company	21,519	20,897	no change	no change
Balance sheet
Accumulated profits	70,152	65,986	64,562	61,694
Translation reserve	7,234	0	n.a	n.a
Total equity (after Minority Interests)	177,632	166,232	164,266	161,398
Fixed assets	176,096	167,571	no change	no change
Current assets	126,567	126,561	no change	no change
Current liabilities	70,837	73,705	47,235	50,104
Net current assets	55,730	52,856	75,265	72,397

* Previously reported - as stated in the Annual Report of 2000

n.a - not applicable