The Singapore-listed company registered a third quarter net profit of RMB820.74m ($134.75m), down 6% from RMB877.25m recorded in the same period of 2012.
Revenue inched up 2% year-on-year to RMB3.67bn with the shipbuilding segment remaining the core revenue driver, contributing about 90.5% of the group's revenue during the quarter. The shipyard delivered eight vessels during the third quarter. Year to date, the yard has delivered a total of 28 vessels.
“Although Yangzijiang has also been affected, we see the silver lining during this time of difficulty. As the prolonged weak demand causes excess capacity and financial stress at shipyards, customers increasingly gravitate towards stronger players to safeguard their investment,” said Ren Yuanlin, executive chairman of Yangzijiang.
“Therefore, the contributing factor to our strong order momentum is not so much due to industry recovery, but rather our sound financial position. The flight towards strong players should be increasingly apparent with the implementation of the Chinese government’s restructuring and consolidation plan, which may result in a higher market share for Yangzijiang,” Ren commented.
In the first nine months of this year, Yangzijiang has secured a total of 52 firm shipbuilding contracts amounting to $2.1bn, with 28 options worth $1.36bn. The company expects more options will be exercised by the end of this year.
The privately-owned Chinese yard is sitting on an orderbook of $3.87bn comprising of 88 vessels, keeping the yard busy until 2016.
“With the limited capacity to take on new orders, the group will focus on securing orders for more technologically advanced vessels going forward. In addition to maximizing returns from the remaining shipyard capacity, constant upgrade of our capabilities ensures that we remain ahead of competition. The venture into offshore oil and gas segment and our jack-up rig project is an extension of this principle,” Ren said.
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