Yangzijiang’s shipbuilding contracts reach a whopping $1.81b YTD

These will keep its yards busy until 2016.

Yangzijiang Shipbuilding (YZJ) reported not-so-impressive financials in 3Q, but its orderbook stands promising.

The group delivered eight vessels in 3Q14, similar to 3Q13, and its order book stands at 114 vessels worth a total of US$4.6b, comprising 94 bulk carriers (US$3.1b) and 20 containerships (US$1.5b). YTD, the group has secured 32 effective shipbuilding contracts worth a total of US$1.4b, and these will keep its yards busy till end 2016.

According to management, compared to last year, the Chinese shipbuilding industry is starting to show signs of a recovery as the industry consolidates. This should benefit yards that are “left standing” such as YZJ.

The fall in oil prices should also support the shipping industry, in terms of lower fuel costs.