The Straits Times / The Business Times News on Cosco

Cosco 's net profits surge 46% to $38m

FUELLED by the strong performances of its ship repair and dry bulk shipping businesses, Chinese shipyard giant, Cosco Corp (Singapore) posted a hefty 46 per cent jump in its first-quarter net profits to $37.6 million.

The group's sales shot up 63 per cent to $267.6 million for the three months ended March 31.

Ship repair sales surged by 53 per cent to $203 million, driven by an increase in the number of high value contracts secured and completed during the quarter.

Bulk shipping sales also increased 47 per cent to $39.3 million due to contributions from two additional ships which joined the fleet in the middle of last year. Earnings per share was 1.71 cents, up from 1.19 cents in the corresponding period last year.

Mr Ji Hai Sheng, vice-chairman and president of Cosco Corp, said the group is optimistic over its prospects for this year.

This is given the current buoyant state of the international ship repair and conversion market, as well as the oil and gas sector.

'In a bid to enhance our group's ship repair and marine engineering capacity, our Zhoushan shipyard upgrading work remains on track for progressive completions in 2006 and mid-2007,' Mr Ji said.

GABRIEL CHEN