Shipbuilding and repair firm Cosco Corp, controlled by China's biggest shipping company, yesterday posted a 12% rise in quarterly profit due to strong business at its shipyards, and forecast higher profit for 2007.
Since last year, Cosco Corp (Singapore) has seen a steady rise in big orders for conversions and construction of offshore oil and gas vessels – a new business for the company – taking its order book to US$1.05bil at the end of March.
Cosco, majority owned by China Ocean Shipping Co, has sold most of its bulk shipping business to focus entirely on repairing ships and building offshore oil rigs as well as converting oil tankers into floating production, storage and offloading vessels (FPSO). The company’s yards in China are building offshore rigs, purpose-built semi-submersible vessels, pipe-laying vessels and hulls for FPSO.
Chief executive Ji Hai Sheng said in a statement the company planned to expand its operations to take advantage of booming demand from the oil and gas industries.
The company said it expected its performance this year to be better than in 2006. The Singapore-listed firm earned January–March net profit of S$42mil, up from S$37.6mil a year earlier. Sales climbed by a third to S$355.8mil.
Since last year, Cosco Corp (Singapore) has seen a steady rise in big orders for conversions and construction of offshore oil and gas vessels – a new business for the company – taking its order book to US$1.05bil at the end of March.
Cosco, majority owned by China Ocean Shipping Co, has sold most of its bulk shipping business to focus entirely on repairing ships and building offshore oil rigs as well as converting oil tankers into floating production, storage and offloading vessels (FPSO). The company’s yards in China are building offshore rigs, purpose-built semi-submersible vessels, pipe-laying vessels and hulls for FPSO.
Chief executive Ji Hai Sheng said in a statement the company planned to expand its operations to take advantage of booming demand from the oil and gas industries.
The company said it expected its performance this year to be better than in 2006. The Singapore-listed firm earned January–March net profit of S$42mil, up from S$37.6mil a year earlier. Sales climbed by a third to S$355.8mil.