Wednesday, March 6, 2013

Colombo Dockyard profits up 28%

Colombo Dockyard Plc, a unit of Japan’s Onomichi Dockyard Co. Ltd, said profits grew 28 percent to 1.9 billion rupees helped by new buildings, amid tough conditions for ship repairs.

In the December quarter the group reported earnings of 434 million rupees, up 7.9 percent from a year earlier. The group reported earnings 6.11 rupees per share for the quarter and 27.81 rupees for the year.

Revenues rose 28 percent to 16.3 billion rupees and cost of sales also rose 28 percent to 13.4 billion rupees allowing gross profit to rise 30 percent to 2.9 billion rupees.

Revenues from ship building rose 43 percent to 11.0 billion rupees in the year.

The group said its focus and a reputation for building high quality support ships for the oil industry had brought benefits.

"Our focus on shipbuilding for the Offshore Supporting Vessels (OSV) market segment has also held us in good stead in that the strategic diversification decisions taken many years ago have seen us charter into niche areas, " Chairman Akihiko Nakauchi told shareholders in the annual report.

"The ship repair area of our business, meanwhile, did have to contend with survival strategy, where ship owners minimised spending and delayed repairs until statutory regulations dictate that repairs be completed."

In 2012, an anchor handling tug supply vessel and two multi-purpose platform supply vessels had been delivered.

Managing director Mangala Yapa said the order book was full and capacity fully utilized until the end of 2013.

Four platform supply vessels are to be completed in 2013, and another in 2014. Colombo Dockyard was also building two 400 passenger cum 250 tonne cargo vessels to be used by Lakshadweep administration in India.

Ship repair revenue rose 4.8 percent to 4.6 billion rupees, but the firm said there was less business from long-time India based customers, and overall market conditions were weak with prices slashed at Chinese yards. (LBO)

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