Cosco Slides to Loss

Singapore-based Cosco Corporation Limited, an investment holding company engaged in ship building, marine engineering and dry bulk shipping, reported USD 4.8 million net loss in the second quarter of 2015, due to a slide in shipyard and shipping revenues.

Turnover from shipyard operations decreased 25.6% to USD 843.4 million in Q2 2015 from USD 1.1 billion in Q2 2014 on lower revenue contribution from marine engineering, partially offset by an increase in revenue from shipbuilding segment.

Turnover from dry bulk shipping and other businesses decreased by 17.8% from USD 12.3 million in Q2 2014 to USD 10.1 million in Q2 2015 as the current short-term rates were lower than the more favorable charter rates received in Q2 2014.

”The low crude oil prices over recent months had adversely impacted the global marine industry. Languid dry bulk shipping market put pressures on the Group’s dry bulk fleet while the shipbuilding market slump negatively affected the Company’s shipyards. In 1H 2015, the group recorded net loss attributable to equity holders of the Company of USD 4 million compared to net profit of USD 26.9 million in 1H2014,” Cosco commented.

As at 30 June 2015, Cosco’s order book stood at USD 8.1 billion with progressive deliveries up to 2017. New orders received in 1H 2015 include 7 container vessels, 1 shuttle tanker, 1 module carrier, 1 multipurpose vessel, 1 research vessel and 1 FPSO conversion.

Captain Wu Zi Heng, Vice Chairman and President of Cosco, said: ”The Group expects present difficult and challenging business and operating conditions to persist. We will continue to focus on moving up the value chain and increasing efficiencies.”

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