China's Avic International Q2 net profit up 53.5%

Avic International Investments, a China-based shipbuilding project management and consultancy services provider, reported higher earnings in the second quarter ended 30 June 2012, Seatrade Asia online reports.

The Singapore-listed company posted second quarter net profit of RMB7.2m ($1.1m), a jump of 53.5% from RMB4.7m in the same period of last year.

Revenue during the quarter also surged 92.4% year-on-year to RMB19.2m. The significant increase in revenue was due to higher management service fee income for the provision of marketing and consultancy services to a shipyard, which more than doubled in 2Q2012 compared to 2Q2011, as well as a close to 80% year-on-year increase in service fee income derived from management and consultancy services in 2Q2012.

“To date, we have secured a $60m contract for the construction of five service vessels and signed a new service agreement with Avic Weihai Shipyard,” said Diao Weichang, executive chairman and interim ceo of Avic Singapore, majority owned by Avic International.