CSSC Holdings posts 43.5% jump in H1 profit

CSSCChina State Shipbuilding Corp ( CSSC ) Holdings has posted a strong 43.5% year-on-year rise in first half net profit amid stringent cost control and higher revenue.

Profit for the six months ended 30 June 2015 jumped to RMB171.7m ($26.96m) compared to RMB119.67m.

Revenue during the period increased by 3% year-on-year to RMB14.24bn.

Shanghai-listed CSSC said the shipbuilding market continues to be under pressure due to the prolonged oversupply of ships.

It added that shipowners have made requests to delay deliveries of newbuildings or to amend shipbuilding contracts, creating a more difficult operating environment for shipbuilders.

At the same time, margins have been squeezed due to lower sales from the higher value offshore units as the oil and gas market softened on lower oil prices, the company said.

As at 30 June 2015, CSSC sat on an orderbook of 139 vessels with a total capacity of 17.74m dwt. It also has 10 jack-up drilling rig newbuildings on order.

In the first six months, the Chinese yard won orders for nine ships with a combined tonnage of 982,400 dwt, and zero orders for offshore units.

The Original Posted by Lee Hong Liang from Singapore/Seatrade Maritime News