Federal II is contracted to PT ASL a subsidiary of SGX listed ASL Marine for conversion from an Oil Tanker to FSO or floating, storage and offloading vessel. Based on the Q3FY2014 result announcement of ASL Marine. The conversion to FSO has been completed. The following is extracted from ASL Marine Q3FY2014 result announcement.
"As mentioned above, shiprepair and conversion revenue recorded in 3Q FY2014 arose mainly from the completion of the conversion works on a crude oil tanker which had a much lower profit margin compared to the usual shiprepair jobs."
GOOD NEWS. THE FOLLOWING ANNOUNCED BY FEDERAL TODAY:
FEDERAL INTERNATIONAL (2000) LTD (Incorporated in Singapore)
Company Registration No. 199907113K (the "Company")
APPLICATION FOR REMOVAL FROM THE WATCH
-LIST PURSUANT TO RULE 1314 OFTHE LISTING MANUAL OF THE
SINGAPORE EXCHANGE SECURITIES TRADINGLIMITED (“SGX-ST”)
The Board of Directors (the “Board”) of Federal International (2000) Ltd (the “Company” andtogether with its subsidiaries, the “Group”) refers to the following announcements in relation to the Company’s application to the SGX-ST:
(a)for extension of time to meet the requirements for removal from the Watch-List of the SGX-ST (the “Watch-List”) dated 28 February 2014; and
(b)for the removal of the Company from the Watch-List dated 7 May 2014.
The Board is pleased to announce that the Company has received a letter from the SGX-STstating that the SGX
-ST has approved in-principle the Company’s application dated 7 May 2014 for removal from the Watch-List. The Company will be removed from the Watch-List witheffect from 9 June 2014.
BY ORDER OF THE BOARD
Loh Chee Meng
6 June 2014
However, what I like about the disposal is for paring down their debt as well as 5+5 cash flow from leasing out the FSO.
Use of Proceed:
"The net proceeds from the Proposed Disposal will be used to repay borrowings (including those referred to in paragraph 5.6 of this Circular) and serve as general working capital for the Group."
3. RATIONALE FOR THE PROPOSED TRANSACTIONS
3.1 The Group has been committed to exploring various charter hire opportunities for the Vessel. The
Group believes that the Proposed Transactions, together with the Project , will be beneﬁ cial to the
3.2 The Proposed Transactions will enable the Group to improve its cash ﬂow position by realising the
value of the Vessel which has been off-hire since November 2010. The Group’s operating cash ﬂ ow
will also improve as the Group has been incurring expenses to maintain the Vessel even though
the Vessel has been off-hire.
3.3 The carrying value of the Vessel may be subject to further impairment if the Vessel continues to be
off-hire. Further impairment of the carrying value of the Vessel will negatively impact the results of
3.4 The Project allows the Vessel to be proﬁ t generating and beneﬁ ts the Group through its interest
in the Buyer. The Project will also allow the Group to seek out appropriate opportunities to further
expand its marine logistics business.