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Highlights: • Group achieved net profit attributable to equity ho lders of $9.7m on turnover of $733.0m in spite of the challenging ope rating conditions in Q1 2013. • Group turnover fell 25.0% on decline in shipyard re venues. • Turnover from shipyard operations decreased 25.5% t o $719.2m due mainly to lower revenue contributions from ship bui lding projects. • Turnover from dry bulk shipping and other businesse s increased 7.8% to $13.8m. • Gross profit fell 20.4% to $78.6 million in Q1 2013 mainly due to lower profit contributions from dry bulk shipping and shi pyard operations. • Net profit attributable to equity holders of the Co mpany slipped 65% to $9.7m. • The Group will continue to enhance capabilities and efficiencies. Singapore - 3 May 2013 – Singapore Exchange (“SGX”) mainboard-listed COSCO Corporation (Singapore) Limited (“COSCO” or t he “Company”), a leading ship repair & marine engineering and shipping group , today announced its 1st quarter financial results for the 3 months ended 31 March 2 013. Group turnover fell 25.0% to $733.0 million in Q1 2 013 from $978.7 million in Q1 2012 owing to a decrease in shipyard revenue. Turno ver from shipyard operations decreased 25.5% to $719.2 million in Q1 2013 from $ 965.9 million in Q1 2012 due to lower revenue contribution from the ship repair and ship building segment. The Group successfully delivered 7 bulk carriers in Q1 2013. Turnover from dry bulk shipping and other businesses recovered 7.8% from $12.8 million in Q1 2012 to $13.8 million in Q1 2013. Gross profit decreased 20.4% from $98.8 million in Q1 2012 to $78.6 million in Q1 2013 mainly due to lower profit contributions from dry bulk shipping and shipyard operations. Other income which comprised gain from the disposal of scrap metal, interest income, net currency exchange gain/(loss) and others decreased 75.4% to $10.9 million in Q1 2013 mainly due to lower sale value o f scrap materials. Distribution costs and administration costs decreas ed 37.6% and 26.3% respectively in line with the decline in revenue. Interest expense increased by 25.3% to $27.2 million in Q1 2013 due to higher bank borrowings deployed t o fund shipyard operations. Overall, net profit attributable to equity holders of the Company decreased 65.0% from $27.8 million in Q1 2012 to $9.7 million in Q1 2013. As at 31 March 2013, the Group’s order book stood a t US$6.4 billion with progressive deliveries up to 2015. This order book is subject t o revision from any new or cancellation of orders that may arise. New orders received in Q1 2013 amounting to about U S$254.0 million include 1 semi- submersible tender assist drilling rig and 2 platfo rm supply vessels. With excess capacity in the shipping industry and the uncertain and weak global economic condition, shipowners may be reluctant to place new orders for vessels and the Group may experience a decline in new orders in ship buil ding which may lead to excess shipyard capacity. In dry bulk shipping, we expect that any rebound in BDI is likely to be subdued as expansion in the global bulk carrier fleet continue s to outpace demand. Captain Wu Zi Heng, Vice Chairman and President of the Company said, “As global economic outlook remains cloudy, our Group expects even more difficult and challenging business and operating conditions in 20 13. The Group will continue to focus on enhancing its offerings by gathering exper tise and capabilities to reach out to a broader customer base. As a leading player among Ch inese shipyards in the offshore marine segment, the Group is well-positioned to mee t customers’ expectations.” About COSCO Corporation (Singapore) Ltd Listed on the main board of the SGX, COSCO Corporat ion (Singapore) Ltd (“COSCO”) is a leading ship repair, shipbuilding & marine engineer ing and dry bulk shipping group. The Group owns 51% of the largest shipyard group in China, CO SCO Shipyard Group, and a fleet of 11 dry bulk carriers. COSCO is the listed subsidiary of China Ocean Shipping (Group) Company, the largest shipping group in China. Cosco Corporation (Singapore) Limited, press release |
