Singapore-listed Yangzijiang has reported a 32% higher net profit for the first half of 2022.
The Jiangsu-based shipbuilder said “continuing operations” enabled it to register CNY 1.2bn ($177m) net profit, up from CNY 887m in the same period of 2021.
Yangzijiang said the group recorded a 70% increase in revenue of CNY 9.7bn from the same period a year ago, backed by higher contributions from all segments including shipbuilding and shipping.
Yangzijiang said it achieved a higher shipbuilding revenue of CNY 8.5bn during the first half of this year as compared with CNY 4.78bn for IH2021. It said the 78% rise in revenue was due to 35 vessels being delivered as compared to 23 ships delivered in the same period a year ago.
But along with the rise in shipbuilding revenue, operating costs for Yangzijiang’s shipbuilding activities increased to CNY 7.4bn for 1H2022, up from last year’s CNY 4.1bn.
The company said this rise in cost was in line with the higher revenue from the shipbuilding business.
Revenue contribution from Yangzijiang's shipping business increased by 37% to CNY 561m as a result of an expanded charter fleet size and improved charter rates.
“Revenue generated by other business such as trading, ship design services and investments retained by the group subsequent to spin-off increased to CNY 659m,” it added.
Yangzijiang also disclosed that its gross profit increased by 64% year on year to CNY 1.4bn, while its gross profit margin remained relatively unchanged at about 15%.
Its annualised return on equity rose to 14% between January and June 2022, up from 9% in the same period of last year.
The figures released by Yangzijiang exclude earnings from the group’s investment and financing segment Yangzijiang Financial Holding which it spun off in April.
“From an operational perspective, this set of results was particularly meaningful to all of us at Yangzijiang Shipbuilding,” said executive chairman and chief executive officer Ren Letian. “We delivered a record number of vessels in 1H2022, despite an extremely challenging environment due to Covid-related supply chain disruptions”.
“With our yards at full capacity, our new workflow systems showed a clear improvement in productivity and efficiency. But this wouldn’t have been possible without the tenacity of our staff who were able to adapt to the numerous obstacles that they had to overcome.”
Yangzijiang said it has secured 18 newbuildings worth $1.09bn this year. The contracts lifted the company’s order book to 134 vessels worth a combined$8.13bn.
“The group, backed by its technology, quality and timely delivery, is well positioned to benefit from the ongoing upcycle for shipbuilding and extend its foothold to clean energy sectors,” said Yangzijiang.
“As the shipbuilding industry is propelling a shift towards decarbonisation, the group has proactively navigated to clean energy sectors and made meaningful progress in July with order-wins of 4 units of 8,000-teu LNG dual-fuel containerships that will carry the GTT Mark III technology with an ammonia-ready fuel tank; and 2 units of 36,000-cbm liquefied ethylene gas carriers,” said Yangzijiang.
