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CSIC warns of potential losses in early 2014CSIC warns of potential losses in early 2014

China Shipbuilding Industry Corp (CSIC) has warned of a potential net loss, or a significant year-on-year plunge in profit in the first quarter of 2014, as China's shipbuilding industry continues to battle with a severe downturn.

Lee Hong Liang, Asia Correspondent

October 25, 2013

1 Min Read
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The state-owned shipyard group managed to achieve a net profit of RMB2.63bn ($432.42m) in the third quarter of this year, though it was a 27.5% drop from RMB3.62bn in the corresponding period of 2012.

Revenue for the quarter ended 30 September 2013 came up to RMB35.44bn, down 21.4% from RMB45.1bn, it announced to the Shanghai Stock Exchange.

For the past two years, China's shipyards have been struggling to stay in operation as newbuilding prices plunged and orders for new ships dried up, hitting the margins of shipbuilders.

More than 50% of Chinese yards have shut down, most of them small to medium sized private enterprises, and further consolidation of the remaining 1,600 yards is taking place.

About the Author

Lee Hong Liang

Asia Correspondent

Singapore-based Lee Hong Liang provides a significant boost to daily coverage of the Asian shipping markets, as well as bringing with him an in-depth specialist knowledge of the bunkering markets.

Throughout Hong Liang’s 14-year career as a maritime journalist, he has reported ‘live’ news from conferences, conducted one-on-one interviews with top officials, and had the ability to write hard news and featured stories.

 

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