PRECIOUS SHIPPING PUBLIC COMPANY LIMITED · 2015-04-07 · Precious Shipping PCL CORPORATE...
Transcript of PRECIOUS SHIPPING PUBLIC COMPANY LIMITED · 2015-04-07 · Precious Shipping PCL CORPORATE...
Precious Shipping PCL 1
CSR Awards 2014
27th August 2014Website: http://www.preciousshipping.com
E-Mail: [email protected]
PRECIOUS SHIPPING PUBLIC CO., LTD.
(“PSL”)
Precious Shipping PCL
COMPANY’S BRIEF PROFILE
Symbol: PSL
Founded: Dec 1989
Listed: Sep 1993
Authorized Capital: THB 1,039,520,600.00 (fully paid up)
Par Value: THB 1/share
Sector: Transportation & Logistics
Business: Shipowner (Dry Bulk Carrier) & Holding Company
Operations Area: International
Fleet size (as of 31 Jul 14): 43 ships of 1,503,940 DWT of 9.67 avg. years
Employees (as of 31 Jul 14): 1,276 persons (officers & crew members)
Shareholders (as of 31 Jul 14): 5,677 persons
Total Revenues (F/S end 30 Jun 14): THB 2,268.92 million
Net Profit (F/S end 30 Jun 14): THB 86.86 million
EPS (F/S end 30 Jun 14): THB 0.08
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Precious Shipping PCL
PSL’S VESSELS TRADING AREAS
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Precious Shipping PCL
MISSION STATEMENT & CORE VALUES
CORE VALUESWe will manage all our business affairs in accordance with the highest
principles of Good Governance. As a part of Good Governance, we have
outlined our Corporate Governance Policy which will be strictly followed
without any compromise.
We will provide efficient, reliable and professional service to all our customers.
We will comply with all rules and regulations and follow the highest safety
standards in operating our ships with a view to eliminating or at least
minimising human injury, loss of life and environmental damage.
We will strive to create, preserve and enhance long term value for our
shareholders.
We will carry out the Company's affairs in a transparent, honest and faithful
manner in the best interests of all stakeholders.
We will provide a stimulating and rewarding working environment for all our
employees with opportunities for self-development and growth.
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MISSION STATEMENT“To be the most respected Shipping Company in the world, providing
best services and solutions to facilitate International dry-bulk trade”
Precious Shipping PCL
OUR CSR & SUSTAINABILITY
The Company is committed to conducting business under Good
Corporate Governance principles; doing business ethically and striving
for the betterment of the society and the environment.
The Company acknowledges that its unique character, of having all its
ships trade all over the world flying the Royal Thai Flag, obliges it to act
as the country’s ambassador to the world and the Company takes this
responsibility very seriously.
The Company places highest priority on Corporate Social Responsibility
(CSR) and has built it into the Company’s Mission Statement and Core
Values.
The Company allocates a budget of 0.50% of net profit every year
towards CSR activities. This budget is cumulative and is subject to a
minimum of Baht 1.75 million and a maximum of Baht 25 million per year.
The actual disbursements out of this budget are decided by the
Company’s senior management, which is periodically or at least once a
year reported to the Board of Directors.
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OUR STAKEHOLDERS
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Our Stakeholders
Shareholders
Customers
Employees
Community &
Society
Regulators
Brokers
Suppliers
Creditors
Precious Shipping PCL
Economic Environment
Social
Fleet Rejuvenation
Growth
Compliance with Regulations & Conventions
Use of New Technology & Innovations
Protection & Conservation
of the Environment
Customer Relationship Management
Our Employees
Community & Society
PSL
OUR SUSTAINABILITY
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Precious Shipping PCL
CORPORATE GOVERNANCE
Classified as one of the listed companies with “Excellent” Corporate
Governance conducted by IOD & National CG Committee for all four
consecutive years; 2010, 2011, 2012 and 2013.
Also, for the years 2012 - 2013, PSL has been ranked as one of listed
companies in the “Top Quartile” which means the best in CG among listed
companies with the market cap over THB 10,000 million.
Classified as one of the top 50 publicly listed Companies in Thailand from
ASEAN Corporate Governance Scorecard guidelines for 2013/2014.
“The Company is committed to conducting business under Good Corporate
Governance principles; doing business ethically and striving for the betterment of
society and the environment.”
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Economic Performance
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PSL’s Strategy for 2014/2015 - expand fleet, fix
ships on long term charters, sell older ships at a
profit.
FLEET REJUVENATION
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PSL Fleet
As of 31st Dec 2010 31st Dec 2011 31st Dec 2012 31st Dec 2013 30th Jun 2014 16th Jul 2014Expected
June 2016
Number of
Vessels 21 25 36 40 41 43 48
Average Age
(Simple Avg) 15.43 years 14.20 years 11.36 years 11.35 years 10.15 years 9.67 years 3.56
Insured
Value
USD 327.50
Million
USD 329.50
Million
USD 522.00
Million
USD 596.30
Million
USD 667.50
Million
USD 725.50
Million
Book ValueUSD 205.37
Million
USD 296.69
Million
USD 528.29
Million
USD 568.17
Million
USD 602.69
Million
USD 657.49
Million
Total DWT 522,925 704,258 1,156,109 1,351,583 1,376,956 1,503,940 2,312,500
Total LDT 117,978 157,146 261,343 305,169 314,622 338,041
Average
DWT
per Vessel
24,901 28,170 32,114 33,790 33,584 34,975 48,177
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PSL’s asset transition from 40 ships in 2013
to 48 young, economical, efficient ships in 2016
Source : CRS/Aries
•2 Cement ships still to arrive in 2014.
•13X64K + 4X38K brand new ships will arrive in 2015.
• up to 21older/non-economical existing ships will be sold in the second half of 2015.
•5X64K + 2X38K brand new ships will arrive in 2016.
43 ships plus 26 brand new ships less up to 21older/non-eco ships equals 48 young, eco, efficient ships.
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ECONOMIC PERFORMANCE
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FINANCIAL PROFILE
H1-2014 2013 2012 2011 2005
Funded Debt $307.15m $282.59m $296.00m $221.71m $80.00m
Equity $472.29m $476.36m $472.85m $484.57m $286.84m
Funded Debt/Equity 0.65 0.59 0.63 0.46 0.28
EBITDA $50.95m $59.30m $40.60m $51.95m $202.34m
Debt*/EBITDA** 6.03 4.77 6.19 2.48 0.40
Daily Earnings $8,972 $7,508 $8,221 $11,265 $14,449
Daily O pex $4,703 $4,535 $4,481 $4,613 $3,055
Total Assets $797.12m $777.41m $784.47m $722.39m $379.98m
Net Profit (Loss) $2.65m $17.49m $4.45m $23.64m $154.22m
Total Revenues $69.53m $156.72m $123.24m $112.19m $277.09m
*Excludes Pre-delivery debt ** H1-2014 Numbers are annualised where necessary
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Precious Shipping PCL
Operating Expenses Comparison
OPEX Comparison with Industry compiled by Moore Stephens & Co.
OPEX excluding dry dock and special survey cost
-
1,000
2,000
3,000
4,000
5,000
6,000
Industry PSL Industry PSL Industry PSL Industry PSL Industry PSL PSL
2008 2009 2010 2011 2012 2013
5,139
3,785
5,115
4,011
5,278
3,850
5,342
3,923
5,271
3,939 4,013
US
$ (
Pe
r D
ay)
Total Operating Costs
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Environmental Performance
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COMPLIANCE WITH REGULATIONS & CONVENTIONS
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In order to have the Company’s ships sailing in international waters,
the Company is legally required to be fully compliant with various
rules and regulations.
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Four pillars of the international maritime industries regulatory frame work:
1) Safety of Life at Sea (SOLAS);
2) Maritime Regulations for Prevention of Pollution (MARPOL) deal with various types of
pollution:
a. Regulations for the Prevention of Pollution by Oil.
b. Regulations for the Control of Pollution by Noxious liquid substances in bulk.
c. Regulations for the Prevention of Pollution by harmful substances carried by sea in
packed forms, or in freight containers, portable tanks or road and rail tank wagons.
d. Regulations for the Prevention of Pollution by Sewage from ships.
e. Regulations for the Prevention of Pollution by Garbage from ships.
f. Regulations for the Prevention of Pollution by Air from ships.
3) Standards for Training Certification and Watchkeeping (STCW);
4) Maritime Labour Convention (ILO MLC 2006). This new convention takes care of employees
benefits and comforts under the 5 titles below:
Title 1: Minimum requirements for seafarers to work on a ship.
Title 2: Conditions of employment.
Title 3: Accommodation, recreational facilities, food and catering.
Title 4: Health protection, medical care, welfare and social security protection.
Title 5: Compliance and enforcement - on board complaint procedures.
COMPLIANCE WITH REGULATIONS & CONVENTIONS
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Two other important regulatory requirements applicable to ship operations are:
International Safety Management Code (ISM Code) and,
International Ship and Port facility Security (ISPS) Code
International Safety Management Code (ISM Code): Learning from
various marine casualties over the years, “International Safety Management
Code” (ISM Code) was introduced by the International Maritime Organization, to
enhance the safe operation of ships and pollution prevention. The ISM Code
became mandatory on 1st July, 1998, for passenger ships including passenger
high-speed crafts, oil tankers, chemical tankers, gas carriers, bulk carriers and
cargo high-speed crafts of 500 gt and upwards, but the Company implemented
this in 1995 itself after obtaining due certification.
The Code is implemented on board the vessels and offices ashore in order to
provide an international standard for the following objectives:
1. Ensure safety at sea
2. Prevent human injury or loss of life
3. Avoid damage to the environment
COMPLIANCE WITH REGULATIONS & CONVENTIONS
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International Ship and Port facility Security (ISPS) Code:
International Ship and Port Safety: ISPS Code, The code is an amendment to
the Safety of Life At Sea (SOLAS) Convention that encompasses a greater level
of security arrangements for ships and ports.
In implementing the ISPS Code the Company has developed standard operating
procedures for vessels entering ports prone to drug smuggling, and
stowaways. This includes employing sniffer dogs and armed guards where
appropriate.
Annual internal reviews are conducted on preventative measures including the
performance of the companies providing the sniffer dogs and guards.
Annual internal audits are conducted on board by a dedicated team of qualified
and experienced ship auditors reporting directly to the Managing Director.
All incidents of non-compliances, accidents and near misses are thoroughly
investigated and analyzed, after which procedures are reviewed immediately.
COMPLIANCE WITH REGULATIONS & CONVENTIONS
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Some of the other regulatory enactments are:
International Convention for the Control and Management of Ships’
Ballast Water and Sediments, 2004.
International Convention on the Control of Harmful Anti-Fouling
Systems, 2001.
International Convention on Civil Liability for Bunker Oil Pollution
Damage, 2001.
International Maritime Dangerous Goods Code.
International Maritime Solid Bulk Cargo Code
National, Regional and Local regulations are more stringent than the
international requirements, like US environment protection acts,
European Union air pollution directives, etcetera.
COMPLIANCE WITH REGULATIONS & CONVENTIONS
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ON A VOLUNTORY BASIS ALL COMPANY VESSELS TAKE PART IN
SEARCH AND RESCUE PROGRAMS WORLD WIDE
“Automated Mutual assistance Vessel Rescue System” (AMVER) : Sponsored by
the United States Coast Guard (“USCG”), AMVER is a unique, computer-based, and
voluntary global ship reporting system used worldwide by search and rescue
authorities to arrange for assistance to persons in distress at sea. The Company
continues to be involved in the AMVER program and its good performance is
recognized by the USCG in the form of AMVER awards given to the Company every
year through their representative at the United States Embassy in Bangkok. A
quote from the USCG citation letter would perhaps reflect what this award is all
about: “…you can take pride in the voluntary commitment of your officers and
crew to the safety of life at sea.”
COMPLIANCE WITH REGULATIONS & CONVENTIONS
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The Company targets to have
ZERO ISM, ISPS & MARPOL violations in 2014.
COMPLIANCE WITH REGULATIONS & CONVENTIONS
Precious Shipping PCL
USE OF NEW TECHNOLOGY & INNOVATIONS
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The Company has acquired larger ships, of 54,000 – 64,000 DWT; these ships can
carry almost twice the amount of cargo, i.e. 100% more, compared to smaller
ships in the fleet.
However, more importantly, the larger ships burn just about 40-45% more fuel
than the smaller ships per day of sailing. On this basis, the fuel burnt per unit
load of cargo reduces drastically and this is yet another example of the
Company’s efforts towards sustainability and to reduce the carbon footprint.
A few significant developments in respect of new ship-design and construction
are outlined below. As far as practically possible, the Company will take these
into consideration while acquiring new ships in the future.
• Eco-friendly ships
• Ballast Water Treatment
• Carbon Footprint and Waste Generation
• Maintain Inventory of Hazardous Material (Ship Recycling convention)
Precious Shipping PCL
PROTECTION & CONSERVATION OF ENVIRONMENT
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The Company has established an “Environment Protection Policy” In addition to
minimum requirements based on international conventions and regulations.
ISO 14001:2004 provides a framework for a holistic, strategic approach to the
Company’s environmental policy, plans and actions, and demonstrates that
the Company is an environmentally responsible organization.
The Company implements an Environment Management System (EMS)
complying with the ISO 14001 standards.
The EMS supplements the Quality Management System, meeting ISO 9001
standard, and the ISM code. This integrated Management System is known
as Safety Quality and Environment Management System (SQEMS).
Through periodic review and continual improvement of our SQEMS, the
Company hopes to elevate environmental performance over the coming years
and make significant contribution to conservation of the environment and
reducing the Company’s carbon footprint. Another tangible effort being made by
the Company to reduce the environmental impact of the business is the
adoption of new environment friendly technology on new ships acquired.
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COMMITMENT FROM TOP MANAGEMENT
With ocean sustainability issues increasing & affecting future of
shipping, shipping industries should demonstrate “CORPORATE OCEAN
RESPONSIBILITY”
Our industry being of a global nature we need to preserve the Oceans.
We conduct periodic reviews to improve our SQEMS and the Company
hopes to elevate environmental performance over the coming years and
make significant contribution to conservation of the environment and
reducing the Company’s carbon footprint.
Another tangible effort being made by the Company to reduce the
environmental impact of the business is the adoption of new
environment friendly technology on new ships acquired.
Each member of the Crew is trained to stress on the importance of
adopting best practices for conservation of the environment
PROTECTION & CONSERVATION OF ENVIRONMENT
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COMMITMENT FROM TOP MANAGEMENT
Environmental Management System (EMS) based on ISO 14001:2004
standard was developed and integrated into the existing Quality
Management System (QMS) based on ISO 9001 standard.
The new system is now being called Safety Quality and Environment
Management System (SQEMS).
After successful completion of Company audit and Shipboard audit, we
were awarded compliance certificate for ISO 14001:2004 in December
2009.
PROTECTION & CONSERVATION OF ENVIRONMENT
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Our Achievements & Environmental performance
Reduced fuel consumption
Reduced Environmental incidents
/complaints
Increased sludge disposal ashore
Reduced garbage and plastics
generated
Reduced Electricity consumption
Reduced Paper consumption
PROTECTION & CONSERVATION OF ENVIRONMENT
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Saving of fuel is achieved by implementing company and vessel
specific Ship Energy Efficiency Management Plan (SEEMP) on all
vessels:
Improved voyage planning with reduced Minimize ballast passage
Weather routing
Speed Optimization
Optimized ship handling by Trim, Ballast
Hull Maintenance
Use of improved Hull coatings like the Silicon based fouling
release which does not release biocides like other anti fouling
paints.
Improved cargo handling
Good Engine Maintenance
Our Achievements & Environmental performance
PROTECTION & CONSERVATION OF ENVIRONMENT
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Our Achievements & Environmental performance
Minimum incineration of Waste oil and Oil Sludge. Disposal ashore
has been encouraged on our vessels where ever suitable reception
facilities are available.
Data collected from the last year (2013) show that our vessels have
disposed to shore facilities 1,247 Tons of sludge (1,247,000 Liters)
That amounts to 3,741 tons of carbon dioxide NOT being emitted into
the atmosphere!
Empirical research suggests that every liter of oil burnt generates
approximately 3 kg of CO2. Waste oil or sludge generated on each
ship is about 1% of all fuel burnt.
Over the past 4 years since implementation of the environmental
objectives, CO2 emission due to oil sludge was reduced by 40% per
vessel per year.
Vessels are also encouraged to Minimize Garbage generated and
maximize disposal of Garbage ashore.
PROTECTION & CONSERVATION OF ENVIRONMENT
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Our Achievements & Environmental performance
Engine Efficiency Operational
Indicator (EEOI): An index of
the amount of Carbon dioxide
produced for every Ton-Mile of
cargo carried is being
implemented through a
software to enable measure our
carbon foot print.
PROTECTION & CONSERVATION OF ENVIRONMENT
Precious Shipping PCL
CONCLUSION
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Conclusion and Environmental Objectives and Goals
“We have had no major contingency situations
causing significant environmental damage.”
The Future Possibilities:
Use of Greener fuel like
Natural gas, Use of Fuel cells
& Sail assisted ships.
Precious Shipping PCL
Social Performance
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CUSTOMER RELATIONSHIP MANAGEMENT
The Company recognizes that it is in the sea transportation industry and its
success depends on adding value to customers by way of transporting
goods from place of production to the place of consumption
The Company is committed to provide substantive reply to any query from a
Customer promptly, but in any event within 24 hours including weekends and
national/international holidays.
Further, whilst operating within the scope of the agreed contract, the Company
tries to provide solutions to any situation/problem the Customer may face,
even if any of our vessels are not involved at that moment.
New computer-based Management Information System: The Company has
implemented a new Computer Program which covers all the operations at the
Company and also links all the vessels in the fleet. This software gives real-
time information on vessel operations, costs, etc. and keeps the Company in
close contact with the Master of each and every vessel; and assists in effective
decision making on all issues. This System has enhanced the Company’s
ability to better serve its Customers, and to provide support to its employees
serving onboard the ships.
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OUR EMPLOYEES
• Employee Recruitment
• Training & Development
• Employees Benefits & Welfare
• Safety & Occupational Health
• Implementation of ILO Maritime Labour Convention
(MLC 2006)
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Employee Recruitment:
The Company recognizes that employees are one more key success factor
for the Company’s operations. The Company provides equal opportunities
in employment, job security, and career advancement, as well as adhering
to other good principles related to employees and employment.
The Company also ensures that employees are adequately
knowledgeable and skillful to perform their jobs for the Company’s
business, and understand relevant code of conduct and practice and
are encouraged to gain knowledge and ability and keep them updated
following Industry trends.
OUR EMPLOYEES
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Precious Shipping PCL
OUR EMPLOYEES
Training & Development:
It is the Company’s policy to encourage and support competent and efficient
seafarers and give them the opportunity to grow within the Organization.
The Company is introducing a mechanism whereby the officers and crew
serving onboard our ships can send in their complaints and/or suggestions to
the office. This, we expect will encourage the ship-staff to make effective
contribution to the shipboard operations, and help us further improve the
Company’s performance.
In order to motivate the junior officers and also keep up with the process of
learning while on board, senior officers are asked to actively interact with them.
In order to measure their levels of competency, computer based competency test
facility is provided on board. Based on the results of these tests, officers are
able to determine their weaknesses and work to improve upon on weak areas.
Maritime Training Center & Bridge Navigation Simulator : The Company has set
up a full-fledged Maritime Training Center at its Head Office in Bangkok which
includes a state-of-the-art Bridge Navigation Simulator.
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OUR EMPLOYEES
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Our Training Center
Bridge Navigation Simulator
Precious Shipping PCL
Employee Benefits & Welfare:
Provide provident fund on a voluntary basis
Provide health insurance for all staff
Provide the medical checkup for crews
Provide medical care for any sickness or injury to all crews
Provide provision of recreational facilities and communication
services, such as television and radio facilities, films, gym,
library, telephone and internet services among others
Internet access & e-mail are offered, crews can send emails to
their families and friends
OUR EMPLOYEES
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Facilities on board:
OUR EMPLOYEES
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Facilities on board:
OUR EMPLOYEES
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OUR EMPLOYEES
Safety & Occupational Health:
It is the Company’s policy to conduct its activities in a manner that
promotes the health and safety of its employees so that the actions of the
Company, and its employees, promote the health and safety of others
too.
The Company’s Safety Management System (SMS) is intended to affirm
that the Company achieves its purpose in this area and is based on the
philosophy that accidents can be prevented by the identification and
management of risk
The Company’s medical fitness requirements are higher than the
standards set by International Labour Organization (ILO) and other
regulatory bodies. As a result, the Company finds very few cases of
fitness or sickness related problems amongst its seafarers.
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Safety on board:
OUR EMPLOYEES
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OUR EMPLOYEES
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Blood Donation Award:
Precious Shipping PCL
SOCIAL & COMMUNITY DEVELOPMENT
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The Company recognizes that a solid community and society is a
significant factor to support the Company’s business.
The Company fully recognizes its responsibility to the Community and is
attentive to the consequences of the Company’s conduct that affect the
people around more than what the laws require, including making efforts
to gradually absorb social accountability.
The creation and expansion of the Company’s CSR Fund will provide a
permanent and formal framework to enhance the Company’s CSR
activities.
The Company employs most of the cadets passing out from the Merchant
Marine Training Center, Thailand and thus contributes to the
development of qualified Thai officers. This pool of officers is available to
any/all Thai ship-owners and not just restricted to the Company.
NASIC Dormitory project, scholarship, periodic blood donation drive
Precious Shipping PCL
Thank You!
A
PRECIOUS SHIPPING
PRESENTATION
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