COSCO Corporation (Singapore) announced 2Q 2014 results

By Joseph R. Fonseca
Sunday, August 03, 2014
COSCO's major shipyards


Singapore Exchange mainboard-listed COSCO Corporation (Singapore) Limited a leading ship repair & marine engineering and shipping group, today announced its 2nd quarter financial results for the 3 months ended 30 June 2014. Group turnover increased 28.8% to $1.1 billion in Q2 2014 from $890.3 million in Q2 2013 supported by the increase in shipyard revenue.

Turnover from shipyard operations increased 29.3% to $1.1 billion in Q2 2014 from $877.2 million in Q2 2013 mainly on higher revenue contributions from ship repair, ship building and marine engineering segments. The Group 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% from $13.1 million in Q2 2013 to $12.3 million in Q2 2014 as the current short-term rates were lower than the more favorable charter rates received in Q2 2013.

Gross profit decreased 4.0% from $95.8 million in Q2 2013 to $92.0 million in Q2 2014 mainly 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% to $35.4 million in Q2 2014 mainly due to higher sale value of scrap materials, an exchange gain of $0.6 million (Q2 2013: exchange loss of $10.2 million) and fair value gain of $4.0 million on forward currency contracts.

Overall, net profit attributable to equity holders of the Company increased 18.8% from $12.0 million in Q2 2013 to $14.3 million in Q2 2014. Compared to 1H 2013, net profit attributable to equity holders of the Company increased 23.6% from $21.8 million to $26.9 million in 1H 2014.
 
Captain Wu Zi Heng, Vice Chairman and President of the Company said, “Our Group’s performance amid the lingering industry headwinds vindicates our resilience under trying conditions. We are resolute in our commitment to deliver value through securing projects higher up the value chain as we intensify our efforts in improving capabilities and productivity.”

As at 30 June 2014, the Group’s order book stood at US$ 8.1 billion with progressive deliveries up to 2016. This order book is subject to revision from any new or cancellation of orders that may arise.
 
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 Group 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 Group 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 Group maintains a cautious outlook for 2014 with continuing uncertainty over the state of the global economy and global economic growth.
 

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

Energy

China's Navy holds Missile Combat Resupply Drill

China's navy held its first drill simulating the resupply of missiles in a combat environment in the Yellow Sea, the Defence Ministry said on Thursday, the latest

Qatar Navigation Absorbs Balance of SocGen Gasships

Qatar Navigation (Milaha) said on Thursday its unit Qatar Shipping Company had acquired the remaining 60 percent interest in two firms which own Liquefied Natural

GasLog Partners To Buy Three Vessels

GasLog Partners LP and GasLog Ltd. announced today the closing of the Partnership’s acquisition from GasLog of 100% of the ownership interests in the entities

News

Austal Delivers 7th Cape Class Patrol Boat

Shipbuilder Austal Limited announced it has delivered Cape Wessel, the seventh of eight Cape Class patrol boats being supplied to Australian Border Force under a $330 million design,

Silversea Cruises Orders Luxury Ship from Fincantieri

Shipbuilder Fincantieri has received an order to build a new luxury cruise ship for client Silversea Cruises due for delivery in April 2017.    At 40,700 grt and accommodating 596 guests,

Latest LCS Completes US Navy Trials

Littoral Combat Ship 6 (LCS 6), the future USS Jackson, has completed U.S. Navy acceptance trials, shipbuilder Austal Limited announced.   The trials, the final milestone before delivery,

Vessels

Austal Delivers 7th Cape Class Patrol Boat

Shipbuilder Austal Limited announced it has delivered Cape Wessel, the seventh of eight Cape Class patrol boats being supplied to Australian Border Force under a $330 million design,

Silversea Cruises Orders Luxury Ship from Fincantieri

Shipbuilder Fincantieri has received an order to build a new luxury cruise ship for client Silversea Cruises due for delivery in April 2017.    At 40,700 grt and accommodating 596 guests,

Latest LCS Completes US Navy Trials

Littoral Combat Ship 6 (LCS 6), the future USS Jackson, has completed U.S. Navy acceptance trials, shipbuilder Austal Limited announced.   The trials, the final milestone before delivery,

 
 
Maritime Security Maritime Standards Navigation Offshore Oil Pipelines Pod Propulsion Ship Electronics Ship Repair Ship Simulators Sonar
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: 0.2140 sec (5 req/sec)