COSCO posts results for Q1 of 2016
Singapore Exchange (“SGX”) mainboard-listed COSCO Corporation (Singapore) Limited, a leading ship repair & marine engineering and shipping group, today anno unced its financial results for the first quarter ended 31 March 2016.
Group turnover decreased 27.1% to $722.3 million in Q1 2016 from $991.2 million in Q1 2015 owing to falls in shipyard and dry bulk shi pping revenues.
Turnover from shipyard business decreased 26.9% to $716.6 million from $980.8 million in Q1 2015, owing to lower revenue contributions from marine engineering and shipbuilding, partially offset by an increase in revenue from ship repair.
The Group delivered 6 projects in Q1 2016, namely 2 oil tankers, 1 salvage lifting vessel, 1 livestock carrier, 1 platform supply vessel and 1 semi-submersible accommodation vessel.
Turnover from dry bulk shipping and other businesses decreased 45.2% from $10.4 million in Q1 2015 to $5.7 million in Q1 2016 on decreased charter rates. Gross profit increased 22.3% from $73.0 million in Q1 2015 to $89.3 million in Q1 2016 due to higher profit contributions from shipyard operations partially offset by losses from shipping operations due to the lower charter rates.
Other income which comprised gain from the disposal of scrap metal, interest income, and others decreased 31.4% to $13.8 million in Q1 2 016 mainly due to lower sales value of scrap materials and interest income. Other gains/losses totaled $0.8 million in losses in Q1 2016 (Q1 2015: $6.6 million gains) mainly due to an exchange loss of $0.1 million (Q1 2015: $7.8 million gain).
Interest expense increased 53.9% to $59.7 million in Q1 2016 due to higher bank borrowings to fund shipyard operations. As a result, the Group recorded net loss attributable to equity holders of the Company of $14.4 million in Q1 2016 compared to net profit of $0.8 million in Q1 2015, weighed down by losses in shipping operations.
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 is the listed subsidiary of China Ocean Shipping (Group) Company, the largest shipping grou p in China.