Yangzijiang Shipbuilding reports 2Q18 net profit up 38 percent as 20 vessels delivered

China yuan coins

Yangzijiang Shipbuilding reported on Tuesday that its second quarter net profit attributable to equity holders rose 38 percent on-year to 994.9 million yuan as revenue more than doubled amid the delivery of 20 vessels.

The progressive construction and delivery in the quarter had more larger size vessels, including two units of 400,000 DWT bulk carriers, five units of 10,000 TEU containerships, and three units of 11,800 TEU containerships, it said.

That compared with just four vessels delivered in the year-earlier period, it said in a filing to SGX after the market close on Tuesday.

Revenue for the quarter ended 30 June increased 110 percent on-year to 7.964 billion yuan, with revenue from shipbuilding more than doubling on-year to 5.237 billion yuan from 2.263 billion yuan in the year-earlier quarter, Yangzijiang said.

Revenue from trading activities also doubled in the quarter to 2.20 billion yuan from 1.111 billion yuan in the year-ago quarter amid a higher volume, it said.

Other shipbuilding related businesses, such as shipping logistics and chartering and ship design services, also nearly doubled in the quarter to 133.45 billion yuan from 68.848 billion yuan in the year-earlier quarter, Yangzijiang said.

That was on higher charter income and shipping revenue contribution from the newly acquired 60 percent-owned subsidiary, Jiangsu Huayuan Logistics, and its wholly own subsidiary, Shanghai Huayuan Shipping, which owns four units of 47,350 DWT vessels providing domestic shipping services, Yangzijiang said.

Yangzijiang said that year-to-date, it has landed new orders for 22 vessels with a total contract value of US$982 million, including 10 units of 82,000 DWT, two units of 180,000 DWT, two units of 208,000 DWT bulk carriers, two units of 2,400 TEU and five units of 12,690 TEU containerships, and one unit of 83,500 DWT combination carrier.

“To achieve sustainable growth, we will continue to upgrade our product portfolio, especially through improving the technological content and efficiencies of large-size containerships and dry bulkers. We are making good progress on the R&D and innovation in clean energy vessels and gradually building up the capabilities in building LNG and LPG related vessels,” Ren Yuanlin, executive chairman of Yangzijiang Shipbuilding, said in the statement.

“As cost of steel increased, we have implemented methods to improve the steel utilization rate, along with broad scale cost-cutting measures,” he added.

Get Shenton Wire headlines in your inbox