Cosco Q2 profit up 60% to $128.7m

Turnover doubles to $1.05b; first time it reports quarterly revenue above $1b

By VINCENT WEE

COSCO Corp (Singapore) continued its good form in the second quarter, with a 60 per cent year-on-year rise in profit to $128.7 million on a doubling of turnover to $1.05 billion from $512.3 million. It was also the first time that the group reported quarterly revenue of more than $1 billion.

First-half turnover also doubled - to $1.76 billion from $868.1 million. And profit rose 74 per cent to $212.6 million.

Growth was good across all business segments and benefited from the expansion of Cosco's facilities and resulting increased capacity. In the dominant (93 per cent) ship repair, shipbuilding and marine engineering business, turnover rose 112 per cent to $978.2 million, while the dry bulk shipping business saw steady 38 per cent growth to $61.1 million. Earnings per share rose from 3.60 cents to 5.75 cents.

'Our growing order book is well-supported by our continuing efforts to expand our capacity,' said vice-chairman and president Ji Hai Sheng. 'Our joint venture with the Port Authority of Lianyungang, Jiangsu has contributed positively to shiprepair and conversion earnings since Q2FY08. We also look forward to a further increase in contributions from our two new Zhoushan dry docks with total capacity of 380,000 dwt as they begin their first full-year contributions in FY2008.'

First-half turnover also doubled - to $1.76 billion from $868.1 million. And profit rose 74 per cent to $212.6 million.

Growth was good across all business segments and benefited from the expansion of Cosco's facilities and resulting increased capacity. In the dominant (93 per cent) ship repair, shipbuilding and marine engineering business, turnover rose 112 per cent to $978.2 million, while the dry bulk shipping business saw steady 38 per cent growth to $61.1 million. Earnings per share rose from 3.60 cents to 5.75 cents.

'Our growing order book is well-supported by our continuing efforts to expand our capacity,' said vice-chairman and president Ji Hai Sheng. 'Our joint venture with the Port Authority of Lianyungang, Jiangsu has contributed positively to shiprepair and conversion earnings since Q2FY08. We also look forward to a further increase in contributions from our two new Zhoushan dry docks with total capacity of 380,000 dwt as they begin their first full-year contributions in FY2008.'

Mr Ji reassured investors that there have been no order cancellations and is confident that there will not be any as Cosco's customers are reputable