[INDUSTRY NEWS]


US and European Wire Rope Engineers Meet in San Diego, California


> Representatives of the Wire Rope Technical Board (WRTB) and the European Federation of Wire Rope Industries (EWRIS) met in San Diego, California, USA, in April, for three days of discussions. This event, which occurs annually, in alternate years in the United States and Europe, is held to review standards developments in the wire rope industry. Participants of the respective associations are designated to represent WRTB and EWRIS in this exchange of information, particularly in the areas of design requirements and operation, and to provide recommendations to various standards writing organizations in the US, Europe and internationally. This year, of particular interest, the


representatives discussed the controversy over the CEN standard prEN 13001.3-2 titled “Limit states and proof of competence of wire ropes in reeving systems.” This controversy centers on a proposed theoretical approach to determining the life of a wire rope used on cranes versus the established wire rope design factors and discard criteria found in long-standing international standards, ISO 4308 Cranes and lifting appliances — Selection of wire ropes — Part 1: General and ISO 4309 Cranes — Wire ropes — Care and maintenance, inspection and discard. The material in the ISO standards relies on proven engineering practice and established criteria of wire ropes which can easily be used by inspectors in the field. CEN is the European Committee


for Standardization (Comité Européen de Normalisation, Europäisches Komitee für Normung), an international non- profit organization which provides a platform for the development of European Standards (ENs), certain of which, so called “harmonized standards”, are part of the EU regulations on products. The International Organization for Standardization (ISO) is the world’s largest developer of voluntary International Standards, which are developed by various working groups in order to help the end users to order, use, and maintain the products they need. Other standards which were discussed


include ISO 16625 Cranes and hoists — Selection of wire ropes, drums and sheaves; ISO 6984 Round non-alloy steel wires for stranded wire ropes for mine hoisting –


Specifications; American Petroleum Institute (API) RP 9B Application, Care, and Use of Wire Rope for Oil Field Service and the European standards of the same subject; and the new wire rope volume in American Society of Mechanical Engineers (ASME) B30. The 2014 meeting will be held in France,


next Spring. The Wire Rope Technical Board (WRTB)


is an association of engineers from companies that account for more than 90 percent of the wire rope produced in the United States. It’s objectives include; to promote development of engineering and scientific knowledge relating to wire rope; to assist in establishing technological standards for military, governmental and industrial use; to promote development, acceptance and implementation of safety standards; to help extend the uses of wire rope by disseminating technical and engineering information to equipment manufacturers; and to conduct and/or underwrite research for the benefit of both industry and user. www.wireropetechnicalboard.org The European Federation of Wire Rope


Industries (EWRIS) is a European organization established to promote and develop the common interests of Steel Wire Rope Manufacturers. Its Technical Working Group is very much involved in helping to develop product standard in order to control quality, use and discard of rope products. EWRIS’ members are individual firms as well some European National Associations representing over 35 companies in 14 countries. www.ewris.com y


Gaylin Achieves S$10.5 Million in Earnings for FY2013, Continues Growth in Asia


> Gaylin Holdings Limited, one of the largest Singapore-based rigging and lifting solutions providers to the global offshore oil and gas (“O&G”) industry, recently reported a net profit of S$10.5 million for the 12 months ended 31 March 2013 (“FY2013”) underpinned by a 7.9% growth in revenue to S$77.1 million. The improved topline in FY2013 was


boosted by a robust fourth quarter, which saw revenue of the Group rise 33.2% year-on- year to S$24.1 million, compared to S$18.1 million in 4QFY2012. This was mainly due to revenue contribution from Allseas Marine Services Pte Ltd, a ship supply business which Gaylin acquired for S$1.5 million in January 2013, as well as stronger orders from


customers based in Asia and Europe for their projects. Collectively, sales from these two markets coupled with Malaysia, rose 50.5% to S$37.2 million in FY2013 from S$24.7 million in FY2012. In line with its revenue growth, the


Group’s gross profit increased by 5.1% to S$24.9 million in FY2013 from S$23.7 million a year ago. Gross profit margin slipped marginally from 33.1% to 32.3% in FY2013. The improved revenue, however, brought


about higher distribution costs in FY2013 which rose 35.4% to S$2.9 million in tandem with the Group’s business expansion. Meanwhile, administrative expenses also increased by 63.0% to S$7.6 million. The hike was due to a number of reasons that included, amongst others, a one-time IPO expenses of S$0.6 million, an increase in staff cost of S$1.3 million to support business expansion, acquisition-related costs of S$0.2 million and a donation of S$0.4 million as part of the Group’s Corporate Social Responsibility initiatives. Desmond Teo, Executive Director and


CEO of Gaylin, said “Despite incurring higher expenditures due to our IPO listing, business expansion and other activities, we managed to keep our gross margin and bottom line healthy in FY2013. In view of this, I am pleased to recommend a first and final cash dividend of 0.8 Singapore cents per share for FY2013. This reflects a dividend payout of 32.9% which is aligned to what we had planned during our IPO. ” Based on 432 million ordinary shares in


issue, the Group’s earnings per share (“EPS”) for FY2013 and net asset value per share (“NAV”) as at 31 March 2013 was 2.43 Singapore cents and 20.76 Singapore cents respectively. This compared to EPS of 4.32 Singapore cents for FY2012 and NAV of 11.65 Singapore cents as at 31 March 2012, which were both based on 300 million ordinary shares in issue.


Outlook


The Group is cautiously optimistic that the O&G industries will remain positive in the next 12 months and remains committed to strengthen its standing as one of the largest rigging and lifting solutions providers not only in Singapore, but in the region. “Our focus for much of FY2013 was


to grow Gaylin’s operations in Singapore and the region through organic expansion and acquisitions. We managed to achieve this successfully through the acquisition of


WIRE ROPE EXCHANGE JULY-AUGUST 2013 7


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