COSCO Turnover Down But 2012 Profitable

COSCO Group achieved net profit attributable to equity holders of $105.7 million on turnover of $3.7billion in 2012.

Group turnover decreased 10.3% to $3.7 billion in 2012 from $4.2 billion in 2011 owing to a decrease in shipyard and dry bulk shipping revenue. However, Gross profit increased 27.3% from $380.8 milli on in 2011 to $484.9 million in 2012 mainly due to
higher profit contributions from shipyard operations.

In 2012, turnover from shipyard operations decreased by 10.1% to $3.7 billion from $4.1 billion in 2011. This is due to lower revenue contribution from the ship building segment which more than offset the growth in revenue from marine engineering segment.

As at 31 December 2012, the Group’s order book stood at US$6.1 billion with progressive deliveries up to 2015. This order book is subject to revision from any new or cancellation of orders that may arise.

New orders received in 2012 amounting to US$2.0 billion include 1 FPSO, 1 wind turbine installation vessel, 1 jack-up drilling rig, 1 jack-up barge, 1 tender rig, 1 semi-submersible accommodation vessel, 1 semi-submersible accommodation rig, 2 pipelay heavylift offshore construction vessels, 2 tender barges, 5 bulk carriers and 8 platform supply vessels.

As the Group continues construction in 2013 on new ship building contracts that were secured in 2010 to 2012 at low contract values due to the slumping bulk carrier 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.