Cosco Corp's Q3 profit up 69% to $7.1 million

SINGAPORE - Shipbuilder, offshore marine engineering and ship repair firm Cosco Corp has reported a 69 per cent jump in net profit to $7.1 million for its fiscal third quarter ended Sept 30.

Net profit rose on the back of higher revenue in the quarter, which increased 17 per cent compared with the same period last year to $1.16 billion.

The firm said on Monday that turnover went up due to increases in its shipyard and dry bulk shipping revenues.

Revenue from its shipyard operations rose 17.2 per cent to $1.1 billion as a result of growth in revenue from the marine engineering segment that delivers barges and rigs.

Turnover from its dry bulk shipping and other businesses increased 11.2 per cent to $14.9 million on higher short-term charter rates.

Earnings per share for the third quarter came in at 0.32 cents, up from 0.19 cents in the same period last year.

Net asset value per share also rose to 60.10 cents at the end of September from 59.65 cents at the end of December.

But Cosco warned of tough times ahead due to uncertainty in global economic growth.

Cosco shares gained half a cent to 60 cents on Monday. It reported its earnings after markets closed.