LOSS-making container shipping firm PDZ Holdings Bhd is confident of returning to the black in the financial year ending June 30 2015, backed by its new strategic plans.
Newly-appointed managing director Nazim Rahman said the company will focus on exploring new business opportunities as well injecting new assets to enhance its profitability.
“We’re looking at either introducing new businesses that will generate continuous income or injecting new assets that will significantly improve the company’s earnings.
“These are the two objectives that we are focusing on, in addition to reducing the current operating expenses,” Nazim said at Pelaburan MARA Bhd’s Hari Raya open house, here, last week.
On the new assets, he said PDZ will be focusing on the logistics and oil and gas services segments, while continuing to drive its marine services business.
“We’ve a few projects in the pipeline. However, I won’t be able to disclose anything yet as I have got to go through the board,” he added.
As to its financial year ended June 30 2014, Nazim said the company expects to see a boost in its bottom line, mainly by a reduction in operating expenses. Its financial performace for the period is expected to be announced by the end of this month.
The shipping industry took a downturn due overcapacity, high fuel costs and low freight charges following the 2008 economic crisis.
This resulted in many shipping companies unable to repay bank loans for the procurement of new vessels, and with many of them still on the road to recovery.
PDZ, which operates six vessels covering Malaysia, Singapore, Brunei and Myanmar, posted a net loss of RM12.45 million in the financial year ended June 30 2013, from a net profit of RM10.56 million the previous financial year.
It attributed the drop to an impairment loss of RM8.24 million due to a
vessel that it sold for scrap, and weakening freight rates.