GSI sees profits jump on one-time gains

Guangzhou Shipyard International (GSI) booked a significant rise in profit in the first nine months of this year, riding on one-off gains mainly from government subsidies and investments.

Hong Kong and Shanghai-listed GSI announced a profit of RMB65.75m ($10.82m) in the nine months ended 30 September 2013, improving 51.6% from a profit of RMB43.39m in the same period of last year.

Revenue during the period, however, declined 49.1% year-on-year to RMB2.46bn.

GSI said it received government subsidies amounting to RMB64.2m and investment returns of RMB53.03m in the first nine months, significantly boosting its bottomline despite the decrease in revenue.

“As at the end of the reporting period, the company commenced the construction of eight ships, launched four ships and completed the construction of six ships,” GSI said.

“In the third quarter of 2013, the company undertook the contracts for constructing 13 ships with a total tonnage of 1,470,000 dwt, and held an order for 58 ships with a total tonnage of 4,190,000 dwt,” it added.
Source: Seatrade Global