Singapore Exchange mainboard-listed COSCO Corporation (Singapore) Limited, a leading ship repair & marine engineering and shipping group, today announced its 3rd quarter financial results for the 3 months ended 30 September 2014. Group turnover increased 17.1% to $1.2 billion in Q 3 2014 from $989.4 million in Q3 2013 on the back of increases in shipyard and dry bulk shipping revenues, the company said in its press release.
Turnover from shipyard operations increased 17.2% to $1.1 billion in Q3 2014 from $976.0 million in Q3 2013 mainly due to growth in revenue from marine engineering segment which more than offset the lower revenue contribution from ship building & ship repair segments. The Group delivered 1 bulk carrier, 1 livestock car rier and 1 jack-up rig in Q3 2014. Turnover from dry bulk shipping and other businesses increased 11.2% from $13.4 million in Q3 2013 to $14.9 million in Q3 2014 as most of the current short-term charter rates were higher than those received in Q3 2013.
Gross profit decreased 22.6% from $73.2 million in Q3 2013 to $56.7 million in Q3 2014 mainly due to lower profit contributions from shipyard operations. Other income comprised gain from the disposal of scrap metal, interest income, net currency exchange gain/(loss) and others. Compared to Q3 2013, other income decreased by 17.7% to $32.7 million in Q3 2014 mainly due to the absence of one-off compensation received from customers in Q3 2013. Interest expense increased by 12.5% to $31.3 million in Q3 2014 due to higher bank borrowings used to fund shipyard operations.
The decrease in income tax expense by 87.9% to $0.9 million in Q3 2014 was mainly due to adjust ment for over provision of tax in respect of prior year’s lower profit contributions from shipyard operations and higher tax-exempt shipping profits. Overall, net profit attributable to equity holders of the Company increased 69.2% from $4.2 million in Q3 2013 to $7.1 million in Q3 2014. Compared to first nine months in 2013, net profit attributable to equity holders of the Company increased 31.0% from $26.0 million to $34.1 million in the first nine months in 2014.
About COSCO Corporation (Singapore) Ltd
Listed on the main board of the SGX, COSCO Corporation (Singapore) Ltd is a leading offshore marine engineering, shipbuilding, ship repair & conversion and dry bulk shipping group. The Group owns 51% of a large shipyard group in China, COSCO Shipyard Group, and a fleet of 10 dry bulk carriers. COSCO is the listed subsidiary of China Ocean Shipping (Group) Company, the largest shipping group in China.