Mainboard-listed Cosco Corporation (Singapore), the leading ship repair & marine engineering and shipping group, today says net profit attributable to equity holders of the company soared 147.4% to $55.1 million for the third quarter ended 30 September 2010 (3Q 2010) from $22.3 million in 3Q 2009.

Group turnover increased 26.7% to $952.7 million in 3Q 2010 on the back of higher progressive revenue recognition for the group’s ship building and offshore marine engineering projects and higher dry bulk shipping revenue. Ship building, repair and marine engineering turnover rose 27.4% to $918.7 million in 3Q 2010 on progressive completions of projects. Turnover from dry bulk shipping business increased 13.7% to $30.4 million in 3Q 2010 due to higher charter rates strategically secured at the points of charter renewals.

Gross profit jumped 43.7% to $115.6 million due to higher dry bulk charter rates secured and higher profit contributions from ship building and marine engineering projects on the back of higher turnover and greater efficiencies.

Compared to the first nine months of 2009, net profit attributable to equity holders of the company increased 67.9% from $92.5 million to $155.2 million for the first nine months of 2010, which had exceeded the $110.1 million registered for the whole of FY2009.

Jiang Li Jun, Vice-chairman and president of the company, says: “We are heartened to be able to deliver continued growth in yet another quarter marked by challenges and uncertainties for our industry. With risks of global growth slowdown persisting unabated, our group remains cautious about our outlook for the rest of 2010. To solidify our strategic position in the industry, we will continue to focus on deliveries and upgrading our facilities, capabilities, efficiency and productivity.”

As at Nov 3, the group’s order book stood at US$6.1 billion ($7.9 billion) with progressive deliveries up to 1st quarter 2013 which will keep the group’s shipyards busy. This order book is subject to revision from any cancelation of orders or new orders that may arise.

On 15 June 2010, Cosco Dalian shipyard and Cosco Guangdong shipyard signed 11 contracts and 4 letters of intent totaling over US$400 million in value with 4 European ship owners to build 15 units of bulk carriers — 4 of 82,000 dwt each and 11 of 57,000 dwt each. The effectiveness of these contracts is dependent on certain conditions including the receipt of the initial deposits from ship owners. As at 3 November 2010, 9 of these shipbuilding contracts totaling over US$250 million have become effective.

With the successful deliveries of six more vessels in 3Q 2010, the group had delivered a total of 24 bulk carriers in the first nine months of 2010 — six by Cosco Guangdong shipyard, nine by Cosco Dalian shipyard and 9 by Cosco Zhousan shipyard. Also notably, Cosco Nantong shipyard delivered 1 jack-up rig, “SUPER M2”, in June 2010. The group will continue to focus on deliveries while it upgrades its shipyard capabilities to improve operational efficiency and productivity.