rss icon Subscribe
desktop mobile

China's Yangzijiang Triples Q3 Profits

Angkan Mukherjee

Chinese Shipbuilding Group Yangzijiang posted a third quarter net profit of $130 million which is more than a tripling of its profits in the third quarter last year.

The group also managed to exceed its target of $1.5 billion in annual orders.

This caused the share price to hit a six year high at $1.64 and the group to increase its annual target for orders to $2 billion for this year and and $2 billion for next year.
The group expects to construct and deliver up to 50 vessels each this year and the next in spite of increasing steel prices and the Renminbi appreciating against the dollar. Plans to increase capacity were announced that will allow the builder to attract more value added contracts.
To increase its capacity quickly, the group aims to pursue opportunities for mergers and acquisitions. They are currently in talks with other shipyards in China as well as with European and Asian technology contractors.
Yangzijiang has been aided by the demise of other Chinese shipyards as many face bankcruptcy and the industry gets more and more consolidated into a few large hands.
However, they have many previous M&A deals that have fallen through including their planned investment in Rongsheng Heavy Industries although they did acquire a semi built hull of a tanker being built at that shipyard at the time.
The group also plans to start building LNG and LPG tankers with an aim to grow that sector to 30% of all its orders. Container ships and bulkers will make up the rest of the orders. With their intention of taking LNG orders, it makes sense that the group has been acquiring technologies for clean-energy shipbuilding.
This change in strategy comes with the expected regulation change that will require a 0.5% limit on sulphur in fuels by 2020. Shipping companies will be forced to use LNG, which burns cleaner, for refuelling and bunkering to meet the regulations pushing up LNG demand and demand for LNG tankers. While many companies may opt to install scrubbers to remove sulphur emissions from exhaust gas, new builds may still be commissioned due to the large amount of space scrubbers take up on deck.

Nov 10, 2017

 

Ship Sales

Cosco Energy Transportation to Buy New Tankers

Photo: Cosco Energy Transportation

Cosco Energy Transportation has entered into the Agreements with Dalian Shipbuilding Industry

CMA CGM Adds 4 Vessels Under French Flag

Photo: CMA CGM

CMA CGM has announced four additional ships under the French flag. The first among these will be

Arctic LNG Carriers Delivered: RS Class

 Photo: Russian Maritime Register of Shipping

The construction of a series of Arctic LNG carriers under the technical supervision of Russian

Shipbuilding

Cosco Energy Transportation to Buy New Tankers

Cosco Energy Transportation has entered into the Agreements with Dalian Shipbuilding Industry Company Limited for the construction of the Very Large Crude Carriers (VLCCs) and

CMA CGM Adds 4 Vessels Under French Flag

CMA CGM has announced four additional ships under the French flag. The first among these will be a 20,600 TEU containership which will be named as CMA CGM Antoine de Saint

Philly Shipyard Completes Tanker Series for APT

Philly Shipyard, Inc. (PSI) has delivered American Pride, the final vessel in a series of four 50,000 dwt product tanker newbuilds for American Petroleum Tankers (APT)

Maritime Apps