Net profit for the quarter ended 31 March 2017 was recorded at RMB692.58m ($100.44m), up from RMB459.61m in the previous corresponding quarter of 2016.
First quarter revenue for Singapore-listed Yangzijiang improved by 72.7% year-on-year to RMB4.68bn due to the delivery of 14 vessels, including the resale of four 82,000 dwt bulk carriers that had their orders previously terminated in 2016.
In March 2017, privately-owned Yangzijiang also delivered two 27,500 cu m LNG carriers, four months ahead of schedule.
“2017 started off well for us. The first two LNG carriers that Yangzijiang ever built were successfully delivered,” said Ren Yuanlin, executive chairman of Yangzijiang. He added that the LNG carriers further enhanced the group’s product profile for future orders of high-tech and clean energy vessels.
As at 31 March 2017, Yangzijiang had an outstanding orderbook of $4.03bn, comprising 84 vessels. This is after taking into account the termination of four shipbuilding orders consisting of three 36,500 dwt bulk carriers and one 10,000 teu containership during the first quarter.
Despite the handful of order cancellations, Yangzijiang noted several encouraging signs for the shipping and shipbuilding industry, citing attractive price of new vessels and the need for owners to renew and upgrade their fleet.
“The improved sentiment on the shipbuilding market not only led to a pick-up in new shipbuilding orders, but also helped us find new buyers for several orders that were previously terminated,” Ren commented.
“However, as the sustainability of the recovery is uncertain, we will remain cautiously optimistic, mindful of the market dynamics, give preference to good quality orders and continue to build up the orderbook,” he said.
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