Yangzijiang Shipbuilding orderbook hits $20 billion

Singapore-listed Yangzijiang reported a net profit of RMB3.06 billion ($536.18 million) in the first half of 2024 up 77% on the same period last year.

The company reported revenues in H1 of RMB13.0 billion which was 15.3% higher on a year-on-year basis. Its core shipbuilding segment contributed 95.0% of the total sales due to increased progressive construction activities and better pricing of overall newbuild vessels.

During the period, Yangzijiang delivered a total of 35 vessels. Together with the two ships built for its own fleet, the group had achieved 59% of its annual delivery target of 63 vessels.

Yangzijiang Shipbuilding secured a total of 79 new orders worth $8.5 billion in the first half of the year. Demand for clean energy vessels remained robust with 79% of the new orders, including 12 gas carriers, 18 LNG dual-fuel vessels, and 17 methanol dual-fuel vessels.

These new orders brought the group’s total outstanding orderbook to a record-high amount of $20.2 billion for 224 vessels, providing earnings visibility up to mid-2028.

In line with the global trend, Yangzijiang is positioning itself to capitalise on the energy transition by enhancing its capabilities and capacity, as well as venturing into synergistic businesses. In July, the group signed a framework agreement with the local government to construct its Yangzi Xinfu Yard which will be developed into a new clean energy ship manufacturing base.

Related:China exports $20.5 billion worth of newbuilds in H1

Moreover, the group has recently received the government approval to convert its fully-owned chemical terminal along the Yangtze River into an LNG terminal. This project, together with the construction of a new LNG storage tank facility, will enable Yangzijiang to develop a comprehensive LNG logistics hub with storage and distribution capabilities.