Cosco Group achieved net profit attributable to equity holders of USD 37 million on turnover of USD 718.5 million in Q2 of 2009 despite another challenging quarter for the industry. For H1 of 2009, group net profit attributable to equity holders amounted to USD 70.2 million on turnover of USD 1.4 billion.

Turnover declined 31% to USD 718.5 million in Q2 of 2009 from USD 1 billion in Q2 of 2008 mainly due to less revenue recognized from ship repair, ship building and marine engineering projects and lower dry bulk shipping revenue. Ship repair, ship building and marine engineering operations fell 30.4% to USD 681.3 million in Q2 of 2009 on lower revenue from ship repair and conversion projects due to the global economic downturn.

Turnover from dry bulk shipping business decreased 45.2% to USD 33.5 million in Q2 of 2009 on lower charter hire rates compared to Q2 of 2008. Ship repair, ship building and marine engineering business remained the largest revenue contributor, representing 94.8% of Group turnover in Q2 2009. Dry bulk shipping and shipping agency and others accounted for the remaining 5.2%.

For H1 of 2009, group turnover fell 18.8% to USD 1.4 billion from USD 1.8 billion in H1 of 2008 on declines in revenues from shipping, ship repair, shipbuilding and marine engineering owing to the global economic downturn.

Gross profit fell 67.7% from USD 245.4 million in Q2 of 2008 to USD 79.3 million in Q2 of 2009 due to the lower dry bulk shipping charter rates and lower profit contributions from ship repair, ship building and marine engineering business led by higher operational costs and a difficult business environment.