Cosco could be veering towards a gloomy 2013

Only 32 bulk carriers are for delivery.

According to CIMB, Cosco’s execution in offshore projects appears to have improved with more reversals of provisions in 4Q12.

However, the firm expects earnings to decline in 2013 from weaker conversion and ship repair, and dwindling shipbuilding projects.

4Q12 net profit is in line at 25% of our FY12 forecast and 22% of consensus, helped by S$17.6m in provisions write-back.

Final DPS of S$0.02 is a payout of 42% (FY11: S$0.03, 45%). 

Here's more from CIMB:

We expect 2013 to be a worse year due to lower revenue from shipbuilding (with only 32 bulk carriers left for delivery from 2013 - 14), ship repair and conversions.

However, Cocso could be a turnaround story in 2014, with most of its offshore projects due for delivery, assuming there are no major delays and cost overruns.