Yangzijiang Shipbuilding's first-quarter profit fell but still exceeded 400 million yuan, and completed 25 percent of its full-year delivery target, as the novel coronavirus outbreak delayed the resumption of production.
On April 29, Yangzijiang Shipbuilding disclosed its first-quarter results. The group's total revenue in the first quarter of 2020 fell 44 percent year-on-year to 3.5 billion yuan due to the delay in resuming work.
Among them, the core shipbuilding business revenue was 2.3 billion yuan, down 33 percent year on year. The group delivered 12 new ships in the first quarter, compared with 15 in the same period last year.
In the first quarter, Yangzijiang Shipbuilding Group's trading business revenue decreased from 2.2 billion yuan in the same period last year to 500 million yuan, mainly due to the reduction in trading activities in the first quarter. Revenue from other shipbuilding-related businesses such as services and ship recycling increased to 145 million yuan, a year-on-year increase of 18.7%.
Yangzijiang Shipbuilding said in its financial report that as the novel coronavirus epidemic spreads globally and affects the business and manufacturing activities of many economies, it is generally expected that the global economy may enter its worst recession since the 1930s.
So far, global shipping demand has fallen, and conditions are unlikely to improve significantly in the second half of 2020. This has seriously disrupted the rebalancing of supply and demand in the shipping market over the past few years. According to Clarkson, the global fleet is expected to grow by 2.7 per cent in 2020, while seaborne trade tonnage could fall by 5.1 percent.
Source: Sarah Yu, XINDE MARINE NEWS
The opinions expressed herein are the author's and not necessarily those of The Xinde Marine News.
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