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Yangzijiang Shipbuilding (YZJ) reports today record earnings of RMB 1.24 billion in their second quarter.
As the third largest shipyard in China by market cap, Yangzijiang is one of the few publicly-listed yards located in China that is prospering amid a shipbuilding down turn that has devastated others in the sector. The company’s USD $5.02 billion order book currently stands at 122 vessels of 3.61 million compensated gross tons. This number includes 25 containerships and 97 bulk carriers.
Within the first half of 2014, the company won 32 shipbuilding contracts with an aggregate value of USD $1.42 billion and delivered six 10,000 TEU containerships, among others, which represents the largest such containerships delivered by a Chinese yard ever. The order was originally placed by Seaspan in 2011.
Mr Ren Yuanlin (???), Executive Chairman of Yangzijiang Shipbuilding commented on the results, “We are happy to deliver another good set of results for 2Q2014 and we will be striving to keep the strong growth momentum going. Another milestone achieved in 2Q2014 was securing our first four 260,000DWT very large ore carriers from our first customers in Australia. This, together with our leading order wins in China, is a testament to global shipowners’ growing confidence in our execution strengths.”
Besides shipbuilding however, YZJ notes they are looking to build up and operate its own fleet of ships as well. The company’s current fleet includes five 92,500 bulk carriers under bareboat hire purchase and five others of the same size that are managed internally by the company. Further expansion of the company’s fleet “may occur while shipbuilding industrial activities are low,” YZJ notes in a press release.
Looking ahead, YZJ says their company’s drydocks will be “highly utilized until end of 2016,” and they are waiting to see what will happen with regard to the four remaining options that Seaspan has for more 10,000 TEU box ships.
“The shipping industry continues to be on a steady recovery track and we have observed that ship owners are enhancing their focus on vessels’ operational efficiencies. This has led to a rise in demand among the shipping industry for vessels that are more complex and larger,” adds Yuanlin.
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