Yangzijiang Remains Confident in Uncertain Times

Yangzijiang Shipbuilding (Holdings) Limited (Yangzijiang), one of PRC’s leading shipbuilders reported net profit attributable to shareholders of approx $505.8 million for the full year ended 31 December 2013 (FY2013).

• Gross profit margin boosted by financial investments segment to 33.2%; shipbuilding related segment gross profit margin remains healthy at 27.4%
• Contract win momentum continues with US$1.3 billion orders for shipbuilding and offshore segment; outstanding order book of US$4.6 billion supports near term shipbuilding outlook
• Proposed final cash dividend of 5.0 Singapore cents per share; translating into a dividend payout ratio of 29.7%

Yangzijiang delivered 34 vessels in FY2013, out of which 6 vessels were delivered in 4Q2013. In February 2014, the group added yet another milestone to its strong track record with the successful sea trial for its first 10,000 TEU containership.

Since 13 November 2013, the group has further secured $511.0 million in shipbuilding orders for 14 vessels. These comprise of 2 units of 36,000 DWT bulk carriers, 3 units of 64,000 DWT bulk carriers, 3 units of 82,000 DWT bulk carriers, 3 units of 208,000 DWT bulk carriers, 2 units of 1,100 TEU containerships, and 1 unit of 10,000 TEU containership.

With these new orders, the group’s outstanding order book increased to $4.6 billion for 111 vessels as at the date of announcement, with 11 outstanding options worth $0.83 billion. Of these, 8 outstanding options are for containerships worth $0.72 billion, while the remaining 3 options are for bulk carriers amounting to $0.11 billion.

The group has made substantial progress in its offshore segment, having signed a contract to build 2 semi-submersible rigs for $825 million, with options for 2 additional similar units. However, the contract has not been made effective pending the receipt of down payment. Construction of the group’s jack-up rig is progressing according to schedule.

The Board remains confident of the group’s financial performance for the year 2014.

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Press Release, February 27, 2014