SINGAPORE (Aug 7): Yangzijiang Shipbuilding reported 2Q earnings of RMB719.9 million ($146 million) for 2Q17 ended June, 73% higher than the RMB415.4 million a year ago.
See: From worst to best: Chinese shipbuilder Yangzijiang's fortunes turn around
Total group revenue increased 27% to RMB3.8 billion in 2Q17. Four vessels were delivered in the quarter, compared to seven delivered in 2Q16.
Revenue derived from shipbuilding business increased by 25% to RMB2.3 billion in 2Q17 from RMB1.8 billion in 2Q16, led by the construction of vessels of larger size during the quarter.
Revenue generated by trading business and other shipbuilding related businesses, such as shipping logistics & chartering and ship design services, were also higher in 2Q17, supported by higher trading volume and higher charter rate.
Under investment segment, interest income increased to RMB341 million from RMB258 million in 2Q16. The higher interested income was mainly due to higher average interest rate as a result of more long-term investments in the portfolio.
The group recorded other gains of RMB189 million, including some fair value gains on its financial assets, from outstanding currency-hedging derivative financial instruments, and from the dissolution of four shipping companies under its shipping arm, which was offset by an exchange related loss.
As at end June, the group had an outstanding order book of US$4.0 billion ($5.5 billion), comprising 85 vessels.
In its outlook, Yangzijiang says global shipbuilding market continued to recover in the first half of 2017, especially in some segments, such as dry bulk carrier, supported by the higher volume of iron ore transportation and the ease of overcapacity. However, new shipbuilding demand for containership remained weak.
Shares in Yangzijiang closed 2 cents higher at $1.48.
