CSIC posts first quarter profit

For the quarter ended 31 March 2017, the state-owned shipbuilder posted a gain of RMB277.07m ($40.18m), an increase of 31.1% compared to the profit of RMB211.32m.

First quarter revenue also rose by 4.2% year-on-year to RMB10.53bn due mainly to increased completed newbuilding tonnage and cost savings reaped from the consolidation of some subsidiary yards.

Last year, CSIC placed Shanhaiguan New Shipbuilding Industry under Dalian Shipbuilding Industry Co, and merged Wuchang Shipbuilding Industry Group under Qingdao Beihai Shipbuilding Heavy Industry.

“Following the consolidation of some subsidiary yards as part of efforts to mitigate the yard overcapacity issue, the group has managed to cut losses for those subsidiaries,” CSIC stated.

Compatriot state-owned shipbuilder China State Shipbuilding Corp, however, was hit by a first quarter loss of RMB71.94m.