Guangzhou Shipyard International has braced investors for more profit decrease.
The Hong Kong-listed Chinese shipbuilder said it expects its net profit for the first three quarters of the year to be just half of what it was during the same period of last year.
Plummeting ship values are having a blow to the bottom line of the shipyard.
“During the first three quarters of 2012, as affected by the decline of the shipbuilding market, the prices of the ships under construction dropped sharply as compared to the same period last year, which resulted in the decrease in profits of the Company derived from shipbuilding.
“Moreover, in order to maintain normal production and operation, the Company has secured orders for nine vessels in the first three quarters of year 2012, impairment losses in respect of eights of those vessels could be made.”
Published : October 4, 2012
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