‘De-globalisation, weak oil hurting ship repair biz’

Manama : The ship repairing market in the Arabian Gulf is sailing through difficult times with the chances of recovery remaining dim in the near-term, warned ASRY chairman, citing de-globalization and oil price declines as the reasons for the slowdown. 

“Every repair job is now aggressively targeted by yards which give higher discount and take lower margins just to secure business. This is the new normal. We do not anticipate any significant recovery in the general repair market in the near-term,” said Asry chairman Shaikh Daij bin Salman Al Khalifa. 

He was speaking at the Maritime Standard Tanker Conference in the UAE a day after being awarded the Maritime Standard Editor’s Choice Award for his contribution to the Maritime industry and the region over the last decade.

While commenting on the effect of the slowdown, Shaikh Daij said: “Today, ASRY is a much more diversified hub with a variety of facilities providing flexible options for customers.  We now take an increasing number of simultaneous smaller jobs alongside, and more varied jobs on the slipways, which is a faster and more segmented way of doing business.”

Reviewing ASRY’s results from January to August 2016, he said that revenues from ship repair activities are down 22pc year on year for the period, and the average repair spend per vessel has dropped 9 per cent. 

“Major changes have already started taking place at the shipyard,” revealed Magdy Mustafa, Acting Chief Executive, “with more to come over the coming months.”

“We must stay proactive in preparing for the upcoming challenges if we are to remain competitive and viable,” he warned.