KUALA LUMPUR (May 22): After 11 years at the helm, Yong Foh Choi, founder and managing director of shipbuilder Sealink International Bhd, has announced his retirement with immediate effect. The 79-year-old businessman passes the baton to his son and chief executive officer cum deputy managing director Yong Kiam Sam who takes over as managing director on the same day.

According to Sealink's Annual Report 2017, Foh Choi formed Sarawak-based Sealink Sdn Bhd to provide chartering services of marine vessels to non-oil and gas industries in 1993. He was appointed to his current role on Dec 28, 2007.

Kiam Sam, 48, holds directorship of all the subsidiaries of Sealink. He was previously a senior consultant with Ernst & Young Consultants, Singapore and an accounts executive in Lambir Myanmar Investments Ltd, Myanmar.

Sealink saw its net loss widen to RM11.16 million in the first quarter ended March 31, 2018 (1QFY18) from RM10.49 million a year ago, primarily due to reduced charter hire income as a result of the sale of a bareboat chartered vessel in 3QFY17. Its loss per share widened to 2.23 sen from 2.1 sen.

Its quarterly revenue fell 22% to RM9.62 million from RM12.33 million in 1QFY17.

On prospects, Sealink said it is optimistic that demand for offshore marine support vessels will improve with further increased expenditure in offshore oil field development and maintenance work by the oil majors.

"The outlook seems to be improving in anticipation of a shipping recovery. The group will continue its emphasis on its core activities of ship building, ship charter and ship repair.

"The group's shipbuilding division will be looking towards building vessels which have a niche market, as well as enhancing its docking (ship repair) facilities, while continuous efforts will be taken towards optimising capacity utilisation of the group's vessels," said Sealink.

"The group is also looking at building new vessels that are more energy efficient and environment friendly, in line with tighter environmental regulations in the maritime industry. With the ongoing initiatives in sustainable cost rationalisation and exposures, we believe the group will be well positioned to tide over the current business challenges," it added.

Sealink shares closed down one sen or 6.9% at 13.5 sen today, with 31,800 shares done, bringing a market capitalisation of RM67.5 million.