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Highlights: • Group achieved net profit attributable to equity holders of $27.8m on turnover of $978.7m against the backdrop of a difficult business environment in Q1 2012. • Group turnover fell 3.2% on declines in shipyard and dry bulk shipping revenues. • Turnover from shipyard operations decreased 2.5% to $965.9m due mainly to lower revenue contributions from ship repair and ship building projects. • Turnover from dry bulk shipping and other businesses dropped 37.6% to $12.8m due to lower charter-hire rates. • Net profit attributable to equity holders of the Company slipped 25.0% to $27.8m on lower profit contributions from dry bulk shipping and shipyard operations. • The Group will continue to focus on reinforcing its strong foundation in ship building and offshore marine engineering sectors, and efficient deliveries and yard upgrades. SINGAPORE (8 May 2012) – Singapore Exchange (“SGX”) mainboard-listed COSCO Corporation (Singapore) Limited (“COSCO” or the “Company”), a leading ship repair & marine engineering and shipping group, today announced its 1st quarter financial results for the 3 months ended 31 March 2012. Group turnover fell 3.2% to $978.7 million in Q1 2012 from $1.0 billion in Q1 2011 due to declines in shipyard and dry bulk shipping revenues. In spite of the growth in revenue from marine engineering segments, turnover from shipyard operations decreased 2.5% to $965.9 million in Q1 2012 from $990.2 million in Q1 2011 due mainly to lower revenue contributions from ship repair and ship building segments. In the quarter, the Group successfully delivered 12 dry bulk carriers and 2 offshore marine engineering vessels – the Sevan Brasil (a cylindrical drilling unit) and a shuttle tanker. Turnover from dry bulk shipping and other businesses decreased 37.6% to $12.8 million in Q1 2012 from $20.5 million in Q1 2011 due to lower charter rates. Gross profit dropped 11.8% from $112.0 million in Q1 2011 to $98.8 million in Q1 2012 mainly due to lower dry bulk shipping income as a result of lower BDI and lower shipyard revenue. Distribution costs rose 13.3% in line with new orders secured and more marketing promotions. As a result, net profit attributable to equity holders of the Company fell 25.0% from $37.1 million in Q1 2011 to $27.8 million in Q1 2012. Capt. Wu Zi Heng, Vice Chairman and President of the Company said, “Our Group expects business and operating conditions for the rest of 2012 to remain difficult and challenging due to the uncertain global economy. We will continue to focus on deliveries while we upgrade our shipyard capabilities and manpower skills to reinforce the strong foundation we have established in the ship building and offshore marine engineering sectors.” As at 31 March 2012, the Group’s order book stood at US$5.8 billion with progressive deliveries up to 2014. This order book is subject to revision from any new orders or cancellation of orders that may arise. New orders received amounting to US$1 billion as of 8 May 2012 include 1 wind turbine installation vessel, 2 pipelay heavylift offshore construction vessels, 4 platform supply vessels, 1 tender rig, 2 tender barges, 1 semi-submersible accommodation vessel and 3 bulk carriers. Currently one of the largest producers of offshore drilling equipment in the PRC, the Group aims to optimize its offshore marine engineering offerings and enhance its expertise and capabilities to reach out to a broader customer base, laying a firmer foundation for long-term sustainable growth in the offshore and marine engineering space. 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. Cosco Corporation (Singapore) Limited, press release |
