Shipyards Feather in Cosco’s Cap
Turnover from shipyard operations increased 29.3% according to Cosco Corporation Limited’s, a Singapore-based ship repair and marine engineering and shipping group, 2nd quarter financial results for the 3 months ended June 30, 2014.
The rise in figures is attributed to higher revenue contributions from ship repair, ship building and marine engineering segments.
Group turnover increased 28.8% compared to Q2 2013, supported by the increase in shipyard revenue.
The company delivered 3 bulk carriers, 1 pipelay heavy lift vessel, 1 tender barge and 1 float-over launch barge in Q2 2014.
Turnover from dry bulk shipping and other businesses decreased by 6.1% compared to Q2 2013, as the current short-term rates were lower than the more favorable charter rates received in Q2 2013.
Gross profit decreased 4.0% due to lower profit contributions from shipyard operations. Other income comprised gain from the disposal of scrap metal, interest income, net currency exchange gain/(loss) and others.
Other income increased by 121.6% mainly due to higher sale value of scrap materials, an exchange gain of $0.6 million and fair value gain on forward currency contracts.
Overall, net profit attributable to equity holders of the company increased 18.8%.
Compared to 1H 2013, net profit attributable to equity holders of the company increased 23.6%.
As of June 30, 2014, the company’s order book stood at USD 8.1 billion with progressive deliveries up to 2016.
New orders received in first half FY 2014 include 8 platform supply vessels, 4 emergency response/rescue/field support vessels, 2 livestock carriers and 1 jack-up rig.
As the company continues construction in 2014 on new ship building contracts that were secured in recent years at low contract values due to the slumping shipping market then, the group expects operating margins on these new shipbuilding projects to continue to be under great pressure notwithstanding improving gains in efficiency and productivity.
In dry bulk shipping, the company expects the positive impact from any rebound in BDI to be subdued as expansion in the global bulk carrier fleet continues to outpace demand.
The company said it maintains a cautious outlook for 2014 with continuing uncertainty over the state of the global economy and global economic growth.
Press Release, August 1, 2014