Yangzijiang Shipbuilding has reported earnings of RMB585.2 million for 3QFY20, down 17% y-o-y, as its bottom line was hit by forex losses and impairment.
Revenue in the same period was RMB3.58 billion, down 34% y-o-y, due to lower trading volume.
During the quarter, the company booked forex losses of RMB291 million and made an impairment of RMB190 million too.
The company has been winning new ship building orders. Year to date, it has secured contracts totalling US$834 million to build 29 vessels. Its total order book now stands at around US$2.4 billion for 67 vessels, to be delivered over the next year or so.
Ren Letian, Yangzijiang’s executive chairman and CEO, has observed some “encouraging” signs of recovery in the shipping market in the past few months.
“Demand for containers on major routes has been strong while the rationalized shipping supply struggled to cope with it. Container charter rates rebounded strongly, and we are glad to see that major shipping companies, in our downstream, posted above-expectation financial results,” he says.
“As the market gradually adapts to new trade and shipping patterns brought about by the COVID-19, including the need for shorter trips within regions and expedited services, Yangzijiang is in an advantageous position to capture the business opportunities amid and post the pandemic,” he adds.
Yangzijiang shares closed at 94 cents on Nov 4, up 1.08%.
