Avic's Q3 profit plunges 93%

Avic International, a shipbuilding project management and consultancy services provider, was hit by a 93.3% plunge in third quarter net profit despite a 66.2% rise in revenue, Seatrade Asia online reports.

“As a result of expenses relating to employee benefits, office expenses and other operating expenses, the group's net profit for 3Q2012 declined 93.3% to RMB0.8m ($128,300),” Singapore-listed Avic said. Net profit a year ago was RMB12.39m.

Revenue rose to RMB35.32m compared to RMB21.26m a year earlier.

“The weak global economic growth, excess ship supply and falling freight rates continue to affect the global shipping industry,” Avic said. “The group remains focused on its multi-pronged growth strategy to expand along the ship design, shipbuilding and ship trading related businesses value chain.”