Yangzijiang Shipbuilding (Holdings) has reported FY2020 earnings of RMB2.5 billion, down 19% from the preceding year. Revenue in the same period was down 37% to RMB14.8 billion.
Despite the full-year earnings decline, there was a marked improvement in 4QFY2020. Revenue for the quarter ended Dec 31 2020 was down 38% y-o-y to RMB3 billion.
However, due to a more favourable mix of higher-margin contracts and other factors, earnings for the quarter was up 17% y-o-y to RMB753.5 million.
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During the year, the company won new orders for 54 vessels worth US$1.82 billion. As at Dec 31 2020, its outstanding order book was US$3.09 billion for 83 vessels.
The order momentum has carried on into 2021. Thus far this year, it has won contracts for 29 vessels worth US$1.3 billion.
“Despite unprecedented challenges faced in 2020 and a decline of new shipbuilding orders, market demand and sentiment improved towards the end of 2020,” says executive chairman and CEO Ren Letian.
The company plans to pay a final dividend of 4.5 cents per share.
Yangzijiang shares closed Feb 25 at $1.06, up 1.92%.