AVIC International Maritime has posted a 15% fall in its second quarter net profit on the back of a weaker shipbuilding market.
The Singapore-listed company said net income was CNY 9.7m ($1.4m) versus the CNY 11.4m achieved 12 months earlier.
Revenue fell 16% year-on-year to CNY 127.9m due to a decline in revenue from its ship design service due to a lack of new shipbuilding construction contracts.
“ Owing to the global supply chain being persistently affected by trade disputes coupled with the feeble growth of the major economies, global newbuilding orders dropped substantially across all major vessel types,” AVIV Maritime said.
Deltamarin was said to have signed a new contract with a major Finnish shipbuilding company to provide design services.
“Together with several other major vessel design orders in its order book, Deltamarin will see high capacity utilization till 2021,” said AVIC Maritime.
“Over the years, Deltamarin has carried out more than 700 studies exploring various markets, project feasibility, product applicability, machineries and systems.
“These studies have resulted in an extensive reference library of technologies from which ship owners, suppliers and yards can benefit.”
Commentating on the results AVIC Maritime chairman Dr Diao Weicheng said: “As uncertainties continue to loom over the global market, we will continue to focus on our core businesses, leveraging on our extensive experience and proven expertise in ship building management, consultancy and ship-design businesses, to secure more orders in 2019.
“With Deltamarin’s strength in the design of high-tech, green vessels and the group’s strong foothold in niche shipbuilding market, we are well positioned to withstand the uncertainties in the market as a strong, integrated maritime service group.”
Separately, AVIC Marine confirmed that it had completed the disposal of its 60% interests in AVIC Zhenjiang Shipyard Marine on 7 August 2019.
The stake in the company, which invests in vessels for investment purposes, was offloaded CNY 15.1mn. The funds will go towards strengthen the group’s financial position.
