Western Marine to spend Tk 500cr on expansion

Western Marine Shipyard, the main shipbuilder of Bangladesh, has decided to invest more than 500 crores in the expansion.

The company's board of directors approved the naval builder's expansion plan to build special types of vessels, according to a disclosure posted on the Dhaka Stock Exchange's website yesterday.

Md Sakhawat Hossain, general manager of the shipbuilder, told the Daily Star that the company would issue rights shares to raise some of the funds to be invested.

The remaining funds will come from his own sources and new loans from banks and financial institutions, he said.

"We prefer the stock market to raise money because the shipbuilding industry needs long-term investment," he said.

This will allow the company to generate an additional income of 150 crore Tk per year, which will enable it to realize 11% additional profits, according to the disclosure.

Western Marine currently manufactures 38 ships for four countries, according to the company. It has exported 14 vessels to three countries in the last year.

Shipbuilders in Bangladesh have exported 43 vessels in the last eight years, including 33 from Western Marine. Western Marine owes about 700 Tk crores to various banks, according to its corporate profile.

She rescheduled her default loans to two banks early in the year and began repaying her installments on a regular basis, as the shipbuilding industry overcame the global recession over the course of four years. past years, said Hossain.

The board of directors also decided to offer 1.25 shares for an existing share at a price of 20 tk each, including a premium of 10 tk for the extension of the capacity of the shipyard, depending on the mission.

Hossain stated that the importance of waterborne transport on the local market is increasing to transport the raw materials needed for the implementation of infrastructure projects such as power plants and power plants. the bridges.

As a result, the income of the shipbuilding industry will soon have a boost, he hoped.

Western Marine achieved a turnover of 213.62 million Tc in the first nine months of fiscal 2016-17, up 2% from 209.44 million recorded in the same period a year ago.

Yesterday, the Board of Directors recommended a 3% cash dividend and a 12% stock dividend for the year ending June 30, 2017.

The company's share rose from "A" class status to "Z" category status on November 1 after paying 10% stock dividend for 2014-15 and 12% for 2015-16 .

The company had issued a stay order from the High Court in 2015 regarding the declaration of dividends because it could not complete its financial statements, according to Hossain.

The crisis came after the company's export orders to Germany were canceled in 2013 due to the fallout from the global recession, he said.

The company held two annual general meetings in one session in October of this year with the permission of the High Court after finalizing the financial statements.

The company's earnings per share rose to 2.14 Tk at the end of June this year from Tk 2.01 the same month last year.

The company dominated the list of yesterday's turnover with its shares worth 26.53 crore changing hands. However, he lost 2.4 or 5.85% to close at 38.60 tak.

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