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UPDATE 1-Yangzijiang Shipbuilding Q2 net profit jumps to record high
August 6, 2014 / 12:40 AM / in 3 years

UPDATE 1-Yangzijiang Shipbuilding Q2 net profit jumps to record high

* Q2 profit climbs 52 pct to 1.2 bln yuan from year earlier

* Q2 revenue drops 3 pct from year-ago period (Adds details on order book, investment assets)

SINGAPORE, Aug 6 (Reuters) - China’s Yangzijiang Shipbuilding Holdings Ltd said on Wednesday second-quarter net profit jumped 52 percent to a record high as some cash deposits matured.

Yangzijiang, one of China’s largest shipbuilders, said net profit climbed to 1.24 billion yuan ($201 million), although revenue eased 3 percent from a year earlier as fewer vessels were delivered in the quarter.

The shipbuilder said it is optimistic that the industry is on track for a recovery, noting there is increasing demand for more complex and larger vessels.

“The Group continued to witness gradual increase in new shipbuilding prices in tandem with a steady number of vessel newbuild enquires,” it said in a statement.

Yangzijiang secured new orders worth $1.4 billion in the first half of 2014, including those for bulk carriers and container ships, pushing its outstanding order book to $5 billion. Its yard capacity is expected to be highly utilised until end of 2016, the company said.

Large investments in held-to-maturity assets, which have dampened investors’ interest in the company due to the lack of transparency, decreased nearly 8 percent from the end of 2013 to 13 billion yuan at the end of June. This is in line with the company’s plan to trim its non-shipbuilding business. ($1 = 6.1705 Chinese Yuan) (Reporting by Rujun Shen; Editing by Edwina Gibbs)

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