COSCO Shipyards, Like Most Others, Found 2013 Challenging

MarineLink.com
Tuesday, April 01, 2014
Mr. Li Yun Peng: Photo courtesy of COSCO

China shipbuilder and repairer COSCO group in its financial report for year ending 31, December 2013, informs that operating conditions for most of 2013 continued to be difficult. The Group’s turnover was $3.5 billion, lower by 6% from $3.7 billion for the year before. Excerpts from chairman Mr. Li Yung Peng' letter to shareholders follow:

"Gross profit amounted to $321 million, from $485 million in 2012. Net profit attributable to shareholders was $30.6 million, a decline of 71%. Diluted earnings per share was 1.4 cents. Group net asset value per ordinary share as at 31 December 2013 was 59.7 cents.

Tremendous efforts were made during the year to control cost and execute projects more effectively under more difficult conditions. As the new construction projects executed during 2013 were from contracts secured two years before, at a time when the shipping market was depressed, some margins were understandably lower. Similarly, cost pressures had also negatively compressed the margins in our offshore marine engineering contracts.

Offshore Marine Engineering Continues To Be Major Contributor
Shipyard operations continued to be the major contributor to overall turnover, at 98.4%. The offshore marine engineering segment accounted for 70% of the shipyard turnover.

During the year under review, a total of 24 projects were completed and delivered. They included one jack-up barge, one transportation barge, one Sevan 650 ultra deep-water cylindrical drilling rig, two tender rigs, two livestock carriers and 17 bulk carriers.

COSCO’s ship repair business continued to perform above industry level, as it maintained its leadership in the China market. During the year, this segment contributed 10% to total shipyard revenue.

An Improved 2013 Order Book
Despite the difficult market conditions, COSCO secured US$3 billion worth of contracts in 2013 compared to US$2 billion for the year earlier, including repeat orders for the offshore marine segment. The Group’s order book as at 31 December 2013 stood at US$7.8 billion.

Market Conditions Remain Challenging
Much has been reported in media about the improvement in world economic conditions since the second half of 2013, with sentiments indicating that growth should increase over the next two years."
 

 

Maritime Reporter June 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

ABB hands over Germany’s DolWin1

DolWin1 integrates 800 megawatts (MW) of clean energy into the German transmission grid ABB, the leading power and automation technology group, has successfully

CMMI’s Maritime Potpourri Focuses on Raising the Bar

The growing popularity of “Maritime Potpourri” Conference organized by the Company of Master Mariners of India (CMMI) was evident yet again on 25th July, 2015

Two Rescued Near Hug Point, ORE.

A Coast Guard Air Station Astoria aircrew assisted Clatsop County Sheriff Department personnel with the rescue of two hikers stranded by incoming tide near Hug Point, Monday.

Shipbuilding

Carrier for Kansai Electric Power Named LNG FUKUROKUJU

Mitsui O.S.K. Lines, Ltd. today took part in a naming ceremony for the newbuilding liquefied natural gas carrier LNG FUKUROKUJU, which is co-owned by MOL and Kansai Electric Power Co.

AAM, UNH in Vessel Design, Construction Pact

All American Marine, Inc.(AAM) together with the University of New Hampshire (UNH) are pleased to announce a contract for the design and construction of a new aluminum catamaran research vessel.

Korean Shipyards in Troubled Water

Struggling with technology and a plunge in oil prices that has discouraged exploration, Korean vessel makers are racking up debt and could show billions of dollars in losses, reports Bloomberg.

Ship Repair & Conversion

Miko Magnetic Patches Pioneer New Repair Technique

BW Offshore has successfully used Miko magnetic patches in a pioneering new repair technique that creates significant time and cost savings. When some cracks

Korean Shipyards in Troubled Water

Struggling with technology and a plunge in oil prices that has discouraged exploration, Korean vessel makers are racking up debt and could show billions of dollars in losses, reports Bloomberg.

Sainty Marine Chairman Resigns

The chairman of Shenzhen-listed Sainty Marine, Wang Shuhua has delivered his resignation amid  the company's deteriorating financial situation, according to an exchange filing.

Finance

NewLead Holdings Announces Commercial Competency of MT Sofia

NewLead Holdings Ltd.announced today a review of the commercial competency of one of its bitumen tanker vessels, the MT Sofia since the vessel was delivered to NewLead's fleet.

Statoil 2Q 2015 Earnings Slip

Statoil delivered Adjusted earnings of NOK 22.4 billion and adjusted earnings after tax of NOK 7.2 billion in the second quarter. Statoil reported Net income in accordance with IFRS of NOK 10.

MOL's Barge Terminal in Bangkok

Mitsui O.S.K. Lines, Ltd. today announced the signing of a Joint Venture Agreement with SahaThai Terminal Co.,Ltd., a container terminal operation company in Thailand,

People in the News

Two Rescued Near Hug Point, ORE.

A Coast Guard Air Station Astoria aircrew assisted Clatsop County Sheriff Department personnel with the rescue of two hikers stranded by incoming tide near Hug Point, Monday.

AAM, UNH in Vessel Design, Construction Pact

All American Marine, Inc.(AAM) together with the University of New Hampshire (UNH) are pleased to announce a contract for the design and construction of a new aluminum catamaran research vessel.

Obama, Leaders Discuss Possible Sanctions, Force for South Sudan

U.S. President Barack Obama and regional leaders discussed options on Monday that included sanctions and a "regional intervention force" if South Sudan's warring

 
 
Maritime Contracts Maritime Security Offshore Oil Pipelines Pod Propulsion Port Authority Salvage Ship Simulators Sonar Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1939 sec (5 req/sec)