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Avic Maritime improves Q3 profit

Avic Maritime improves Q3 profit
China’s Avic International Maritime Holdings (Avic Maritime) has improved its third quarter net profit as shipbuilding and ship design income increased.

Profit for the third quarter ended 30 September 2015 stood at RMB3.59m ($560,200), an increase of 21% compared to the gain of RMB2.97m in the previous corresponding period.

Third quarter revenue, however, fell by 9% year-on-year to RMB131.94m due mainly to a decline in other income as there was no ship-related steel trading income generated this year.

This was however offset by increases in shipbuilding income and ship design income of RMB6.5m or 13% and RMB11.4m or 338% respectively. In ship design, the group secured 24 new designing contracts during the third quarter amounting to EUR4.31m ($4.62m).

Avic Maritime noted that the overall outlook for the global maritime industry is likely to remain challenging, hampered by reduced orders for new vessels, and by concerns of slowing economic growth in China and emerging markets.

Diao Weicheng, executive chairman of Avic Maritime, said: “We have further diversified our business into the vessel trading and investment business with the acquisition of AZM.”

The group has completed the acquisition of 60% shareholding in Avic Zhenjiang Shipyard Marine (AZM) through an agreement with Catico Investments.

“Furthermore, we have already begun looking into commercially feasible LNG-fuelled dry bulk carriers, or ‘dry bulk carriers of the future’, amidst the stricter environmental regulations as more shipowners start to consider the potential usage of LNG,” Diao said.

TAGS: Shipyards