03 October 2014, News Wires – Chinese fabrication group Cosco boosted third-quarter net profit by 69.2%. fuelled by higher marine engineering revenue, but warned of a “challenging” newbuild market.
The Singapore-listed giant reported net income for the period of $7.1 million, versus $4.2 million a year ago, as its turnover rose 17% year on year to $1.2 billion, mainly from its shipyard operations.
The group’s orderbook stood at $8.9 billion at the end of the quarter, having netted contracts for platform supply vessels, subsea vessels, a jack-up rig and accommodation unit, among other units, for delivery up to 2016 so far this year.
However, president Wu Zi Heng said Cosco “maintains a cautious outlook” given the weakness of the global economy, with the group’s profits under pressure from low margins on shipbuilding projects due to the shipping slump.
It stated “the group continues to expect difficult and challenging business and operating conditions to persist for the rest of 2014”.