May 17, 2010 (LBO) – Sri Lankan ship builder Colombo Dockyard’s net profit for the March 2010 quarter fell sharply as ship repair revenue came down despite an increase in earnings from ship building, a stock exchange filing said. The yard, which is majority owned by Japan’s Onomichi Dockyard, said net profit fell 48.7 percent to 266 million rupees in the March quarter from a year ago with sales down 12 percent to 2.6 billion rupees.
Earnings per share fell to 3.86 rupees in the March 2010 quarter from 7.58 rupees the year before.
The accounts showed revenue from ship repair fell 43 percent to 970 million rupees in the quarter from the previous year while revenue from ship building rose 21 percent to 1.4 billion rupees.
In the December 2009 quarter too, the yard’s net profit fell owing to lower earnings from ship repair, which yield higher margins than ship building.
Net profit for the December quarter was down 24 percent to 337 million rupees with sales flat compared with the previous year.
The yard has reported a full ship building order book in recent quarters, mainly vessels like tugs to support offshore oil fields.
Colombo Dockyard is scheduled to build and deliver altogether six vessels