Cosco profit jumps 85% to S$68mln

The Group, however, is working to improve productivity after retrenching 1,500 employees and as it took more time to build new vessels compared to competitors.

In addition, there was a decline in the profit margin of new orders compared to orders obtained in 2007, according to a Phillip Securities Research Pte Ltd report. Cosco, though, posted 34% increase in second quarter revenue to S$963 million coming from ship building, marine engineering projects and dry bulk shipping.

“Turnover from shipyard operations increased 35.5 % to $924 million on the back of higher progressive revenue recognition for the Group’s ship building and offshore marine engineering projects. Dry bulk shipping turnover increased 6.3% to $36 million due to higher charter rates,” added Cosco.

Net profit attributable to equity holders of the Company increased 42.6% from $70 million to $100 million in the first half of 2010 in comparison with the same period in 2009.