Highlights:

• Turnover soared 104% to $1.05 billion, surpassing the $1-billion mark in a quarter for the first time on broad-based expansion across all key segments.
• Ship repair, ship building & marine engineering turnover jumped 112% driven by high-value offshore & conversion and shipbuilding projects.
• Net profit attributable to equity holders rose 60% on successful business expansion and operational efficiencies.
• Strong order book, efficiency & capability enhancement and capacity expansion support positive outlook.
• Healthy order book of US$7.4 billion as at 30 June 2008.

SINGAPORE (4 August 2008) – Singapore Exchange (“SGX”) mainboard-listed COSCO Corporation (Singapore) Limited (“COSCO” or the “Company”), a leading ship repair, shipbuilding & marine engineering and dry bulk shipping group, is pleased to announce another record-breaking quarter on broad-based expansion, mainly due to ship repair, shipbuilding and marine engineering businesses which are supported by buoyant order book.

Net profit attributable to equity holders of the Company surged 60% to $128.7 million on 104% turnover jump to $1.05 billion.

Turnover from ship repair, ship building and marine engineering operations rose 112% to $978.2 million in Q2 FY2008. This was driven by progressive revenue recognition for the Group’s healthy stream of high-value offshore marine engineering and ship conversion projects, as well as contribution from the ship building segment which began recognizing revenue for its first dry bulk carrier in Q3 FY2007. The 2 new dry docks which became operational at COSCO Zhoushan in 1H FY2007 further contributed positively to turnover. Dry bulk shipping business also delivered steady growth of 38% to $61.1 million in turnover in Q2 FY2008 on the back of higher charter-hire rates.

Ship repair, ship building & marine engineering business remained the largest revenue contributor, representing 93% of Group turnover in Q2 FY2008. Dry bulk shipping and shipping agency and others accounted for the remaining 7%.

Compared to Q1 FY2008, turnover registered a sequential growth of $329.4 million or 46% from $717.7 million in Q1 FY2008. Turnover grew 103% from $868.1 million in 1H FY2007 to $1.8 billion in 1H FY2008, well-supported by buoyant performance across the board.

Gross profit increased 61% to $245.4 million in Q2 FY2008, lifted by higher turnover partially offset by rising costs of sales. Other gains rose 63% to $62.4 million mainly due to higher income from sale of scrap materials and interest income from bank deposits. The Group managed to keep expenses in check despite higher operating costs due to growing business volume and rising price environment.

Overall, net profit attributable to equity holders of the Company rose 60% from $80.4 million in Q2 FY2007 to $128.7 million in Q2 FY2008 backed by strong business expansion and operational efficiencies. Compared to 1H FY2007, net profit rose 74% from $122.3 million to $212.6 million in 1H FY2008.

Mr. Ji Hai Sheng, Vice Chairman and President of COSCO Corporation said, “In face of the challenges of global inflationary pressures and economic uncertainties, our Group’s undaunted focus on growing our businesses against all odds had again yielded dividends. To drive further expansion and profitability, our Group remains committed to growing the top line by building on our high-value ship repair, ship building and marine engineering order book, and boosting the bottom line margin by keeping a tight grip on costs through operational efficiencies.”

The Group currently has a healthy and growing order book of US$7.4 billion for progressive delivery up to 2011. As the Group drums up its strong capabilities in the highly technical offshore marine engineering and ship building work, it recently scored another coup with the signing of Letter of Intent (“LOIs”) with two wholly-owned subsidiaries of Sevan Marine ASA (“Sevan”) who exercised the options secured earlier to build two more Sevan 650 drilling units, with the option to build six more Sevan platform as announced on 15 July 2008. Such affirmation of the Group’s competency in offshore rig-building serves to open up even more doors for the Group in its inroad into this market.

Mr. Ji added, “Our growing order book is well-support by our continuing efforts to expand our capacity. Out joint venture with the Port of Authority of Lianyungang, Jiangsu, has contributed positively to ship repair and conversion earnings since Q2 FY2008. We also look forward to further increase in contributions from our two new Zhoushan dry docks with total capacity of 380,000 dwt (that commenced operations in the 1H FY2007) as they begin their first full-year contributions in FY2008.” On 16 January 2008, the Group announced that through Cosco (Nantong) Shipyard, it had acquired a piece of land at Qidong, Jiangsu province. When fully developed in 4 phases by 2011, it will have 8 new berths for ship repair, conversion and offshore operations.

Barring unforeseen circumstances, the Board of Directors is confident of the Group’s prospects in FY2008.

About COSCO Corporation (Singapore) Ltd
Listed on the main board of the SGX, COSCO Corporation (Singapore) Ltd (“COSCO”) is a leading ship repair, shipbuilding & marine engineering and dry bulk shipping group. The Group owns 51% of the largest shipyard group in China, COSCO Shipyard Group, and a fleet of 12 dry bulk carriers. It also operates shipping agencies. COSCO is the listed subsidiary of China Ocean Shipping (Group) Company, the largest shipping group in China.

Source: Cosco Corporation (Singapore) Limited