Dongfang slumps further into the red
Chinese firm Dongfang Shipbuilding announced on Tuesday a poorer set of results in the six months ended 30 June 2011, Seatrade Asia reported.
The shipping and shipbuilding firm fell to a deeper net loss of $3.7m in the first-half compared to a net loss of $1.7m in the same period of 2010.
The London-listed firm posted shipping income of $12.6m during the period, up 53.7% from $8.2m in the previous first-half. Its shipbuilding revenue dropped 24.2% year-on-year to $33.2m.
“With no new shipbuilding orders having been contracted by the group since 30 June 2011, the directors expect that outlook for the shipbuilding operations to remain weak for at least the next six months,” said Chen Tongkao, ceo of Dongfang.
“Currently, we are negotiating for new sale contracts worth approximately $50.8m in the 4,200, 3,800 and 4,999 dwt bunkering tanker series,” Chen said.
As at 31 August 2011, Dongfang's orderbook amounted to approximately $83m from six vessels, including two for its own use.
“The outlook for the global economy remains uncertain in view of the eurozone sovereign debt crisis and the weak US economy. We therefore remain cautious and envisage a challenging year ahead,” he added.