Find out why COSCO's 1Q13 performance was disturbingly disappointing

Turnover form shipyard operations dropped 26%.

According to OCBC, COSCO Corp’s 1Q13 revenue and net profit attributable to shareholders came in at S$733m (-25% YoY) and S$9.7m (-65% YoY) respectively.

Turnover from shipyard operations, consisting of ship repair and shipbuilding, decreased by 26% YoY to S$719m in 1Q13 (1Q12: S$966m), while turnover for dry bulk shipping and other businesses increased by 8% YoY to S$13.8m (1Q12: S$12.8m).

Here's more from OCBC:

All in all, 1Q13 performance was disappointing with PATMI forming only about 9-10% of ours and consensus’ FY13F estimates.

Gross profit margin remained stable at 10.7% in 1Q13, comparable with the 10.1% in the year-ago quarter.

However, net margin declined to 1.3% (1Q12: 2.8%), mainly due to (1) lower sale of scrap materials, (2) an exchange loss, and (3) higher finance expenses.

As the group continues construction on the low-margin contracts in its order-book, management expects its operating margins to continue “under great pressure notwithstanding improving gains in efficiency and productivity”.

Also Read

Shell pipeline leaks oil into Singapore’s Bukom Island

Changi Airport Group unveils three faster vessels for sea rescues

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

I want to download the media kit