Singapore-listed shipbuilder Yangzijiang Shipbuilding Holdings’ profit for the second quarter of 2015 shrank 17% on a year ago despite higher revenue contribution for the period.
The company recorded CNY5.7 million (USD0.9 million) in revenue for second-quarter 2015, up 34% on a year ago, mainly because it delivered more vessels in the quarter (11 vessels), as compared with nine vessels a year ago.
Revenue derived from the company’s shipbuilding business increased 12% from CNY3.3 million in the second-quarter 2014 to CNY3.76 million in second-quarter 2015.
However, Yangzijiang’s other earnings, including interests from bank deposits ship finance leases, decreased significantly to CNY64.7 million in second-quarter 2015 from CNY214.9 million a year ago.
Yangzijiang executive chairman Ren Yuanlin said the prolonged shipping downturn has almost reached “rock bottom”, but the company is well-positioned to weather the uncertainty by adapting to market changes.
As of the end of June 2015, Yangzijiang has an outstanding orderbook of USD4.14 billion. For July-August 2015 the company has secured new orders for four 9,700 teu container ships and four 3,800 teu container ships for a total contract value of USD510 million.
Additionally, Yangzijiang will seek to add more clean energy vessels into its product mix as part of its growth strategy.
So far, the shipbuilder has clinched orders for two 27,500 m³ vessels in the last quarter.