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Guangzhou Shipyard returns to profit in 2014 after restructuring

Guangzhou Shipyard returns to profit in 2014 after restructuring
Restructured Guangzhou Shipyard International (GSI) has boosted its revenue in 2014 and returned to profit from the loss recorded in 2013.

The Chinese shipbuilder posted a profit of RMB151.5m ($24.24m) in 2014 as against a loss of RMB218.57m in 2013.

Revenue for the year ended 31 December 2014 rose to RMB9.53bn, an increase of 63.2% from RMB5.84bn in the previous financial year.

The return to profit last year was attributed mainly to the sale of non-core units which allowed the company to book a non-operating income of RMB813.33m.

The sale of the non-core assets was part of GSI’s restructuring process, which also included GSI’s parent firm China State Shipbuilding Corporation (CSSC) transferring 100% shares of its subsidiary Huangpu Wenchong Shipbuilding Company to GSI ownership.

Last year, GSI commenced the building of 23 ships, launched 25 ships and completed construction of 18 ships of 1.34m dwt, which represented an increase of 13% year-on-year in tonnage terms.

For 2015, GSI plans to undertake contracts amounting to RMB10bn and to complete the construction of ships with 21.17m dwt, as well as other jobs on ship equipment.

TAGS: Shipyards