Cosco Corporation (Singapore) Limited said on Monday that its net profit for the second quarter ended June 30, 2011 fell 53 per cent to S$31.86 million compared to S$68.38 million a year ago due to a challenging business environment.
Profit for the half year also took a hit, falling 31 per cent from S$100.09 million the first half year in 2010, to S$68.95 million.
Revenue for the second quarter rose 3 per cent from S$962.46 million last year to S$996.05 million due to revenue recognition of ship building and marine engineering projects, although revenue from dry bulk shipping and ship repair had slipped.
Revenue for the half year increased 12 per cent from S$1.80 billion the previous year to S$2.01 billion this year.
Profits were also affected by a 74 per cent increase in income tax to S$25.0 million, due to a lower tax-exempt shipping profit and a deferred tax benefit.
The group's order books currently stands at US$7.0 billion, with deliveries scheduled all the way to the first half of 2014.
Cosco is cautious on its outlook, citing a fragile global economy, uneven recovery and eurozone debt crisis as worries. The strengthening of the Chinese Yuan against the US dollar and rising raw material costs may also affect their operating margins.
It also expects to incur higher costs in its entry to the offshore and marine sector.
Profit for the half year also took a hit, falling 31 per cent from S$100.09 million the first half year in 2010, to S$68.95 million.
Revenue for the second quarter rose 3 per cent from S$962.46 million last year to S$996.05 million due to revenue recognition of ship building and marine engineering projects, although revenue from dry bulk shipping and ship repair had slipped.
Revenue for the half year increased 12 per cent from S$1.80 billion the previous year to S$2.01 billion this year.
Profits were also affected by a 74 per cent increase in income tax to S$25.0 million, due to a lower tax-exempt shipping profit and a deferred tax benefit.
Cosco is cautious on its outlook, citing a fragile global economy, uneven recovery and eurozone debt crisis as worries. The strengthening of the Chinese Yuan against the US dollar and rising raw material costs may also affect their operating margins.
It also expects to incur higher costs in its entry to the offshore and marine sector.
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