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• The Group achieved 84.7% jump in net profit attributable to equity holders on turnover rise of 33.9%. • Turnover from shipyard operations climbed 35.5% to $923.5m on higher progressive revenue recognized for the ship building and marine engineering projects. • Turnover from dry bulk shipping business rose 6.3% to $35.6m due to higher charter-hire rates. • Net profit attributable to equity holders of the Company soared 84.7% to $68.4m on higher profit margins. • Group will continue to leverage on the strength of its well-diversified business to remain competitive and to consolidate its strategic position in the industry. SINGAPORE (2 August 2010) – Singapore Exchange (“SGX”) mainboard-listed COSCO Corporation (Singapore) Limited (“COSCO” or the “Company”), a leading ship repair & marine engineering and shipping group, today announced strong growth for its financial results for the second quarter ended 30 June 2010. Group turnover increased 33.9% to $962.5 million in Q2 2010 mainly due to higher revenue recognized from ship building and marine engineering projects and higher dry bulk shipping revenue. Turnover from shipyard operations increased 35.5 % to $923.5 million on the back of higher progressive revenue recognition for the Group’s ship building and offshore marine engineering projects. Dry bulk shipping turnover increased 6.3% to $35.6 million due to higher charter rates. Gross profit surged 73.2% to $120.9 million due to higher dry bulk charter rates and higher profit contributions from ship building and marine engineering projects on the back of higher turnover. As a result, net profit attributable to equity holders of the Company increased 84.7% to $68.4 million in Q2 2010 due to higher profit contributions from dry bulk shipping and shipyard operations. Compared to 1H 2009, net profit attributable to equity holders of the Company increased 42.6% from $70.2 million to $100.1 million in 1H 2010. Mr. Jiang Li Jun, Vice Chairman and President of the Company said, “We are pleased to achieve strong growth against a challenging backdrop for our entire industry. As business, industry and private demand conditions remain uncertain, and as various governments begin unwinding some of their stimulus measures amidst a fragile global economic recovery pressured by the recent fiscal crisis and financial market turmoil in parts of Europe, our Group maintains a cautious outlook for the rest of 2010.” The Group successfully delivered 18 bulk carriers in the 1st half of 2010. Of these, COSCO Guangdong shipyard delivered 4 bulk carriers, COSCO Dalian shipyard delivered 7 bulk carriers and COSCO Zhoushan shipyard delivered 7 bulk carriers. In addition, COSCO Nantong shipyard delivered 1 jack-up rig, “Super M2 “, in June 2010. The Group will continue to focus on deliveries while it upgrades its shipyard capabilities to improve operational efficiency and productivity. The Group has an order book of US$ 5.5 billion with progressive deliveries up to 1st quarter 2013 which will keep the Group’s shipyards busy. This order book is subject to revision from any cancelation of orders or new orders that may arise. On 15 June 2010, COSCO Dalian shipyard and COSCO Guangdong shipyard signed 11 contracts and 4 letters of intent totaling over US$ 440 million with 4 European shipowners to build 15 units of bulk carriers, 4 of which are 82,000 dwt and 11 of which are 57,000 dwt each. The effectiveness of these contracts is dependent on certain conditions including the receipt of the initial deposits from the shipowners. As at 31 July 2010, 7 of these shipbuilding contracts totaling over US$ 200 million have become effective. “The Group will continue to leverage on the strength of its diversified business to remain competitive and to consolidate its strategic position in the industry.” Mr. Jiang added. Barring any unforeseen circumstances, the Group expects to stay profitable in 2010. 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 |
