Ship Building

March 01, 2010 (LBO) – Sri Lankan ship builder Colombo Dockyard said net profit for the 2009 financial year rose by almost half although they fell in the December quarter as ship repair revenue came down. The yard, which is majority owned by Japan’s Onomichi Dockyard, said in a stock exchange filing that net profit for the financial year ending December 31, 2009 rose 48 percent to 2.15 billion rupees from a year ago.

Sales rose 21 percent to 13.5 billion rupees during the year. Earnings per share were 31.45 rupees compared with 21.24 rupees the previous year.

Revenue from ship repair rose to 6.7 billion rupees in 2009 from six billion rupees in 2008 while revenue from ship building rose to 5.6 billion rupees from 4.3 billion rupees.

In the December quarter the yard’s net profit fell 24 percent to 337 million rupees with sales flat compared with the previous year.

Revenue from ship repair fell to 1.56 billion rupees in the December quarter from 1.78 billion a year ago with revenue from ship building slightly down.

The decline in December quarter profits came on the decline of revenue from ship repair which yield higher margins than ship building, stockbrokers SC Securities said.