Yangzijiang Shipbuilding net profit up 73% in Q2

SINGAPORE - Yangzijiang Shipbuilding posted a net profit of 720 million yuan (S$146 million) in the second quarter, up 73 per cent from a year ago.

Revenue in the three months to June 30 was 3.79 billion yuan, up 27 per cent from a year ago.

Although four vessels were delivered in the quarter, lower than the seven delivered in the second quarter last year, shipbuilding revenue rose by 25 per cent to 2.26 billion yuan.

This was due to higher volume of activities with construction of vessels of larger size, the group said. The trading business also contributed towards a higher revenue of 1.11 billion yuan.

Earnings per share was 18.79 Chinese cents, up from 10.84 Chinese cents a year ago.

Net asset value per share was 608.43 Chinese cents as at June 30, up from 592.20 Chinese cents as at Dec 31 last year.

The group said: "The global shipbuilding market continued to recover in the first half of 2017, especially in some segments, such as dry bulk carrier, supported by the higher volume of iron ore transportation and the easing of overcapacity. New shipbuilding demand for containerships remained weak."

As at 30 June 2017, the firm had an outstanding order book of US$4 billion (S$5.5 billion) comprising 85 vessels.