COSCO Singapore's Q2 net profit dropped 13.3 pct on yr

SINGAPORE, August 2 (Xinhua) -- COSCO Corporation (Singapore) Limited, Singapore Exchange mainboard-listed subsidiary of China Ocean Shipping (Group) Company, announced Wednesday that its net profit dropped 13.3 percent on year to 27.6 million Singapore dollars (22.3 million U.S. dollars) in the second quarter, mainly due to lower profit contributions from dry bulk shipping operations.

During the first half of this year, the company suffered an annual net profit drop of 19.6 percent to 55.4 million Singapore dollars (44.7 million U.S. dollars).

Turnover from COSCO's shipyard operations, major contributor to the overall revenue, decreased marginally by 2.2 percent to 960.8 million Singapore dollars (774.8 million U.S. dollars) in Q2.

The company attributed the drop to lower revenue contribution from ship building segment which more than offset the growth in revenue from ship repair and marine engineering segments.

Turnover from dry bulk shipping and other businesses increased marginally by 2.8 percent to 14.6 million Singapore dollars (11.8 million U.S. dollars) in Q2 due to contribution from other businesses which more than offset the decline in dry bulk shipping revenue affected by lower charter rates, the company said in a statement.

"With excess capacity in the shipping industry and the uncertain global economic conditions, shipowners may be reluctant to place new orders for vessels and the Group may experience a decline in new orders in ship building," the company said, adding that they may maintain a cautious outlook for 2012. Enditem

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