COSCO Corporation (Singapore) Limited, a leading ship repair & marine engineering and shipping group, today announced its financial results for the full year ended 31 December 2015.
Group turnover decreased 17.4% to $3.5 billion in FY 2015 from $4.3 billion in FY 2014 owing to decrease in shipyard and shipping revenue. Turnover from shipyard operations fell 17.3% to $3.5 billion in FY 2015 from $4.2 billion in FY 2014, mainly attributed to lower revenue contribution from marine engineering, partially offset by an increase in revenue from ship building and ship repair.
The Group delivered 21 projects in FY 2015, namely 6 platform supply vessel, 9 bulk carriers, 2 anchor handling tug supply vessels, 1 oil tanker, 1 floating accommodation unit and 2 semi-submersible accommoda tion vessels. Turnover from dry bulk shipping and other businesses decreased 25.0% from $52.5 million in FY 2014 to $39.4 million in FY 2015 on l ower charter rates.
The Group swung into a gross loss of $214.8 million in FY 2015 from gross profit of $291.0 million in FY 2014 on lower revenues and hig her inventory write-down which increased $184.8 million to $309.3 million in FY 20 15 due mainly to the impairment made for DP3 Deepwater Drillship (DDD), which is cu rrently available for lease or sale.
Other income decreased 23.9% to $81.4 million in FY 2015 mainly due to lower sales value of scrap materials and lower interest income. Administrative expenses increased $348.8 million to $522.5 million mainly due to the increase in allowance for impairment of trade and other receivables of $354.5 million to $380.3 million which relates mainly to construction contracts on modules of drillship and FPSO for certain Brazilian customers with uncertainties in their pro ject status. Interest expense increased 30.7% to $166.9 million in FY 2015 due to higher ba nk borrowings used to fund shipyard operations.
As a result, the Group recorded net loss attributab le to equity holders of the Company of $570.0 million in FY 2015 as compared to net profit of $20.9 million in FY 2014.
About COSCO Corporation (Singapore) Ltd
Listed on the main board of the SGX, COSCO Corporat ion (Singapore) Ltd (“COSCO”) is a leading offshore marine engineering, shipbuilding, ship repair & conversion and dry bulk shipping group. The Group owns 51% of a large shipy ard group in China, COSCO Shipyard Group, and a fleet of 10 dry bulk carriers. COSCO i s the listed subsidiary of China Ocean Shipping (Group) Company, the largest shipping group in China.