COSCO Singapore Announces Record Breaking Sales

by Mary Swire, Tax-News.com, Hong Kong

04 May 2006

COSCO Corp (Singapore), a leading ship repair and marine engineering and shipping group strong first quarter profits achieved on the back of record turnover.

COSCO Singapore announced on Tuesday that its net profit jumped 46% to S$37.6 million (US$23.9 million), up from S$25.8 million in the same period last year.

Group sales jumped 63% to a historical quarterly high of S$267.6 million.

Ship repair sales jumped 53% from $132.6 million in the first quarter of 2005 to $203 million in the first quarter of this year driven by an increase in the number of high value contracts secured and completed during the quarter, as well as the group's shipyard capacity upgrades.

Bulk shipping sales increased by 47% from $26.6 million in Q1 2005 to $39.3 million in Q1 2006 as two additional ships joined the fleet midway through last year.

"We are optimistic of our prospects in FY2006 given the buoyant international ship repair and conversion market in the oil and gas sector," commented Ji Hai Sheng, Vice President and Chairman of COSCO Corporation.

"Clearly underscoring our Group's offshore marine engineering and ship repair & conversion capabilities, our Group successfully secured a number of new high value rig-building and ship repair & conversion contracts in the last two months totalling US$137.15 million in value," he added.

COSCO Singapore is a wholly owned subsidiary of China Ocean Shipping Group, the largest shipping group in China. The company is listed on the Singapore Stock Exchange's main board.

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