COSCO Shipping International Company Limited announced its financial results for Q2 2017, reporting that the group turnover decreased by 32.2% to $524.7 million from $762.9 million in Q2 2016.
At the end of June, turnover from shipyard operations decreased by 31.6% to $516.1 million in Q2 2017, from $754.6 million in Q2 2016; mainly owed to lower revenue contribution from ship repair, ship building and marine engineering
Turnover from dry bulk shipping and other businesses increased by 4.7% from $8.3 million in Q2 2016 to $8.7 million in Q2 2017 as the current short-term rates were higher than the charter rates in Q2 2016.
Other income increased by 21.4% to $17.9 million in Q2 2017, mainly due to higher interest and rental income. Administrative expenses decreased by 93.2% to $0.9 million.
Mr. Gu Jing Song, Vice Chairman and President of the Company said, “The Company’s management has commenced and is actively reviewing potential investment opportunities and the Company will provide updates as necessary at the appropriate time.” As at 30 June 2017, the Group’s gross order book stood at approximately US$5.8 billion with progressive deliveries up to 2020.
This order book continues to be subject to revision from any new, cancellation, variation or scheduling of orders that may arise. New orders received in Q2 2017 include 1 FRSU module, and 3 container vessels. The Group expects operating margins on new ship building and offshore contracts to continue to be subject to severe downward pressure as these conditions continue to prevail.