Cosco net profit grew 53% in 1Q11

Net profit attributable to equity holders of the Company also increased 16.9 per cent.

According to Cosco, net profit grew from $38 million in 1Q 2010 to $58.4 million in 1Q 2011.

Net profit attributable to equity holders of the company grew from $31.7 million to $37 million in 1Q 2011.

The Group achieved a 21.0% increase in turnover to $1.0 billion in Q1 2011 from $835.0 million in Q1 2010 boosted by higher revenue from ship building and marine engineering projects notwithstanding lower revenue from ship repair & conversion and dry bulk shipping.

Gross profit increased by 42.8% from $78.5 million in Q1 2010 to $112.0 million in Q1 2011 on greater efficiencies from ship repair and conversion projects and higher profit contributions from ship building and marine engineering projects on the back of higher turnover with greater efficiencies despite a lower dry bulk shipping charter rates amidst a difficult business environment.

Overall, net profit attributable to equity holders of the Company increased 16.9% from $31.7 million in Q1 2010 to $37.1 million in Q1 2011 due to higher profit contributions from shipyard operations despite lower profit contributions from dry bulk shipping.

Cash and cash equivalents decreased from $867.2 million to $833.5 million mainly due to cash used in the purchases of new property, plant and equipment and purchase of inventories.

As at 31 March 2011, the Group’s order book stood at US$5.9 billion with progressive deliveries up to 2013 which will keep the Group’s shipyards busy. This order book is subject to revision from any new orders or cancellation of orders that may arise.