Singapores Cosco profit up

Singapore-listed Cosco, majority-owned by China Ocean Shipping (Group) Co, said its 2007 net profit climbed to S$336.6 million ($239 million), from S$205.4 million a year ago, a 64 % increase.

The company said the strong performance came on the back of robust growth in its ship repair, ship building and rig building businesses. The 2007 attributable profit was higher than a forecast average of S$308.5 million. Including minority interest the company earned S$478.6 million, up 71 % from 2006.

Since last year, Cosco has seen a steady rise in big orders for conversions and construction of offshore oil and gas vessels, taking its order book to $6.5 billion as of December 31. Its yards, all in China, are building parts of offshore rigs, purpose-built semi-submersible vessels, pipe-laying vessels and hulls for FPSO vessels.

Analysts expect Cosco Corp to earn net profit of S$568 million in 2008, as sales from ship repairs and construction of offshore vessels are expected to continue to grow, thanks to increased capacity at its shipyards. Last month, Cosco said it would build a new yard in China’s Jiangsu province that would focus on rigs and other oil and gas-related vessels.