Small Malaysian shipping company Nepline Bhd expects to return to profit next year and plans to issue 170 million ringgit ($46 million) in Islamic bonds to expand its fleet.
Nepline, which has a market capitalisation of just $5.6 million, is finalising the purchase of a double-hulled Aframax tanker of 100,000 deadweight tonnes for about $45 million, Managing Director Muhamad Azmi Alwi told Reuters in an interview on Thursday. "We hope to bring in the vessel some time in September. We are discussing with a few foreign charterers, and will probably use it to ship crude from the Gulf to China," Azmi said. "With the Aframax alone, we should be able to get 9 to 10 million dollars in revenue next year. This is double our current total revenue," he added.
Nepline, whose clients include Royal Dutch Shell and Malaysian state oil company Petronas, posted revenue of about 26 million ringgit in 2005, but had a net loss of 7 million ringgit, due to book losses from disposal of its land transport business.
"This year will be the last year to provide for book loss, and next year we will start clean," Azmi said.
Nepline, which now owns four small single-hulled ships, has also ordered a 7,000-tonne double-hulled tanker from China for $12 million, and will exercise an option for another vessel by the end of this month, he added.
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