Cosco Corporation (Singapore) is expecting newbuilding prices to drop further as buyers are increasingly unwilling to pen new orders due to global economic uncertainties, Seatrade Asia online reports. “There may be greater pressure on the prices of new vessels as our customers may be reluctant to commit to new orders for vessels in the short term. The rising cost pressure may also affect our operating margins though cushioned by our improving productivity,” said Wu Zi Heng, vice chairman and president of Cosco Corp.
The gloomy business outlook has hit Singapore-listed Cosco Corp which reported a 44% plunge in net profit for its financial year 2011.
Net profit for the Chinese-based ship repair, shipbuilding and marine engineering and dry bulk shipping group fell to S$139.67m ($111.46m) in 2011 compared to S$248.84m in 2010. Revenue, however, rose 8% to S$4.16bn.
The plummet in net profit was blamed largely on lower profit contributions from dry bulk shipping and the higher costs incurred in shipyard operations.
As at 31 December 2011, the group's orderbook stood at $6.1bn with progressive deliveries up to first half 2014.
Wu added that Cosco Corp will enhance its offshore marine engineering offerings to reach out to a broader customer base. Its orderbook in this sector includes one deepwater drillship, one semi-submersible barge, one wind turbine installation vessel, one shuttle tanker, two semi-submersibles, two jack-up rigs, three Sevan 650 drilling units, and three tender rigs.
The gloomy business outlook has hit Singapore-listed Cosco Corp which reported a 44% plunge in net profit for its financial year 2011.
Net profit for the Chinese-based ship repair, shipbuilding and marine engineering and dry bulk shipping group fell to S$139.67m ($111.46m) in 2011 compared to S$248.84m in 2010. Revenue, however, rose 8% to S$4.16bn.
The plummet in net profit was blamed largely on lower profit contributions from dry bulk shipping and the higher costs incurred in shipyard operations.
As at 31 December 2011, the group's orderbook stood at $6.1bn with progressive deliveries up to first half 2014.
Wu added that Cosco Corp will enhance its offshore marine engineering offerings to reach out to a broader customer base. Its orderbook in this sector includes one deepwater drillship, one semi-submersible barge, one wind turbine installation vessel, one shuttle tanker, two semi-submersibles, two jack-up rigs, three Sevan 650 drilling units, and three tender rigs.