COSCO reports profits from its ship repair, conversion, & engineering projects cushioned shipbuilding losses.
- Group achieved net profit attributable to equity holders of $27.6m on turnover of $975.3m against the backdrop of a difficult business environment in Q2 2012.
- Turnover from shipyard operations decreased 2.2% to $960.8m due mainly to lower revenue contributions from ship building projects, cushioned by growth in revenue from ship repair and marine engineering segments.
- Turnover from dry bulk shipping and other businesses increased marginally by 2.8% to $14.6m supported by contribution from other businesses which more than offset the fall in dry bulk shipping revenue due to lower charter-hire rates.
- Gross profit increased 56.2% to $117.4m mainly due to higher profit contributions from ship repair & conversion and marine engineering projects.
- Net profit attributable to equity holders of the Company slipped 13.3% to $27.6m.
Capt. Wu Zi Heng, Vice Chairman and President of the Company commented, “Our Group maintains a cautious outlook for 2012 as the state of global economy remains fragile. With excess capacity in the shipping industry and the uncertain global economic conditions, shipowners may be reluctant to place new orders for vessels and the Group may experience a decline in new orders in ship building.”