Cosco net profit soared to $249mn in FY2010

4Q 2010 net earnings surged 431% y-o-y and 70% q-o-q to $93.6 million.

According to DBS, high earnings was fuelled by improved margin recovery from shipbuilding, higher-than expected offshore revenue, cost savings from preferential tax rate and tightened cost management. This brings FY10 net profit to $249 million.

Adding back the cost overrun provision of S$24m for the heavy lift, car carrier and wind turbine installation vessel, Cosco’s bottomline would have been stronger at over S$117m, raising overall margins by 2.5ppt. In particular, gross margin for bulk carriers is estimated to have lifted to 11-12% from c.10% in 3Q due to efficiency gains, cuts in staff headcount and lower steel cost. DBS expects margin to be sustainable at 10% in FY11, as efficiency gains offset rising production costs.

Offshore contribution to revenue has increased from 15% in FY09 to 24% in FY10 and is expected to rise further to 40% by 2012 assuming offshore orders of US$2bn this year. Cosco’s first mover advantage into offshore and relatively more proven track record puts it in a favourable position among the Chinese yards to benefit from the return of offshore contracts.

If you've been wondering whether SBR could work for your company — yes, probably.

A lot of the companies we partner with started as readers. They'd been following our coverage for a while, saw their own customers and competitors in it, and eventually asked the obvious question: could we do something with you? The answer is usually yes. The shape of it depends on what you're trying to do.

The options are broader than most people assume — thought leadership articles, sponsored content, industry summits across Southeast Asia, regional awards programmes, podcasts, and media placements in print and digital. Some partners use one channel; most use a mix. We figure out the right combination by starting with your brief, not with our rate card.

So if the question has been on your mind, here's the easy way to ask it.

We'll tell you honestly whether we can help, and how. It's a better use of everyone's time.

Book a meeting

| Or download the media kit (PDF)

240,000 senior readers quarterly in print Top 1,700 Singapore companies reached

7 markets across Southeast Asia