Mainboard-listed Cosco Corporation (Singapore), one of the leading ship repair & marine engineering and shipping groups, says it posted an 84.7% y-o-y rise in net profit attributable to equity holders of the company to to $68.4 million for its financial results for the second quarter ended 30 June 2010 (2Q 2010) due to higher profit contributions from dry bulk shipping and shipyard operations.

Group turnover increased 33.9% to $962.5 million in 2Q mainly due to higher revenue recognized from ship building and marine engineering projects and higher dry bulk shipping revenue. Turnover from shipyard operations increased 35.5 % to $923.5 million on the back of higher progressive revenue recognition for the group’s ship building and offshore marine engineering projects. Dry bulk shipping turnover increased 6.3% to $35.6 million due to higher charter rates.

Gross profit surged 73.2% to $120.9 million due to higher dry bulk charter rates and higher profit contributions from ship building and marine engineering projects on the back of higher turnover.

The group says it delivered 18 bulk carriers in the 1st half of 2010. Of these, Cosco Guangdong shipyard delivered 4 bulk carriers, Cosco Dalian shipyard delivered 7 bulk carriers and Cosco Zhoushan shipyard delivered 7 bulk carriers. In addition, Cosco Nantong shipyard delivered 1 jack-up rig, Super M2, in June 2010. The group says it will continue to focus on deliveries while it upgrades its shipyard capabilities to improve operational efficiency and productivity.

The group has an order book of US$5.5 billion ($7.4 billion) with progressive deliveries up to 1st quarter 2013 which will keep the group’s shipyards busy. This order book is subject to revision from any cancelation of orders or new orders that may arise. On June 15, Cosco Dalian shipyard and Cosco Guangdong shipyard signed 11 contracts and four letters of intent totaling over US$440 million with four European shipowners to build 15 units of bulk carriers, four of which are 82,000 dwt and 11 of which are 57,000 dwt each. The effectiveness of these contracts is dependent on certain conditions including the receipt of the initial deposits from the shipowners. As at July 31, seven of these shipbuilding contracts totalling over US$200m illion have become effective.