COSCO profit down 25% to $27.8m

No thanks to lower profit contributions from dry bulk shipping and shipyard operations.

COSCO Corporation (Singapore) Limited said Group turnover fell 3.2% to $978.7 million in Q1 2012 from $1 billion in Q1 2011 due to declines in shipyard and dry bulk shipping revenues.

According to the company, in spite of the growth in revenue from marine engineering segments, turnover from shipyard operations decreased 2.5% to $965.9 million in Q1 2012 from $990.2 million in Q1 2011 due mainly to lower revenue contributions from ship repair and ship building segments.

Meanwhile turnover from dry bulk shipping and other businesses decreased 37.6% to $12.8 million in Q1 2012 from $20.5 million in Q1 2011 due to lower charter rates.

Gross profit dropped 11.8% from $112.0 million in Q1 2011 to $98.8 million in Q1 2012 mainly due to lower dry bulk shipping income as a result of lower BDI and lower shipyard revenue. Distribution costs rose 13.3% in line with new orders secured and more marketing promotions. As a result, net profit attributable to equity holders of the company fell 25% from $37.1 million in Q1 2011 to $27.8 million in Q1 2012.