Bahrain-based Arab Shipbuilding and Repair Yard (Asry) expects its revenue to hit $200 million this year as the company expands its product portfolio, its chief executive said.

As many as 140 vessels were repaired by the yard in the first half of this year, Chris Potter was quoted as saying by the Gulf Daily News, our sister publication.

Last year, the shipyard's revenue was $176 million.

"For the first half of this year, we have seen a 25 per cent increase in revenues over the same period last year," Potter said.

"There appears to be some movement, things are improving which has led to greater volume of business as compared to last year," he added.

The company, which has 35-40 per cent share of the GCC market, has been working at full capacity for the last few months, even as regional competitors had unused spare capacity.

"Everybody has been fully employed over the last six months. We have increased the manpower but through our contractors," Potter said. "Since December last year, about 300 more people were indirectly employed by Asry."

The yard currently has 1,800 personnel on its payroll and another 3,500 people are employed by its contractors.

Asry has also seen keen interest in its newest product offering - power barges.

"Power barges are in demand for their short construction cycles, flexibility in deployment and minimal land requirements," the chief executive said.

"The capital costs of constructing and operating power barges are very competitive with their land-based equivalents."

According to Potter, the floating power plants will be built at the newly expanded fabrication facility.

"We are still waiting to secure the first order for them. We feel we are very close to clinching a deal," he said. "We expect more orders by the fourth quarter of this year."

Potter also announced that the company had completed commercial registration of its Saudi division, which will be based in Dammam, with an office in Al Khobar.

"It will be operational within the next two-three months," he said. "There is a very large industrial market there which we will be looking at. Petrochemicals, marine work, naval work are the key industries. We see huge potential there and over the next two-three years and expect it to be quite a good revenue earner.”

Under the five-year strategy, the company is consolidating its facilities having just finished the first phase of expansion - the new quay wall and so on.

"Depending on how the market improves will determine when we get into the next phase of expansion, which will likely only happen after two-three years. The main component of the next phase of expansion will be a new floating dock," Potter added.

Referring to the Stolt Valor, which was dismantled by the yard last year, Mr Potter said the project was a major achievement for Asry, which had not worked on a ship of that size before, and it broke new ground for the company.

"However, it is not something that we look on as mainstream work, although it is something that we are very capable of doing. If similar vessels or opportunities come along, we will certainly offer our services." – TradeArabia News Service