COLOMBO (EconomyNext) – Sri Lankan ship builder Colombo Dockyard’s March 2015 quarter net profit rose three percent to 135 million rupees from a year ago despite a fall in sales as growth remained constrained by the global slump in shipping.
Earnings per share for the quarter were 1.87 rupees, according to a stock exchange filing of the yard, which is 51 percent owned by Japan’s Onomichi Dockyard Company Limited and in which state institutions have about 33 percent.
Colombo Dockyard sales fell 13 percent to 3.7 billion rupees in the quarter. Revenue from ship building, the yard’s biggest current source of revenue, fell during the quarter although gross profit rose.
Revenue and gross profit from ship repair were up slightly during the period.
The yard has been hit by the continuing downturn in shipping where an oversupply of ships has led to sharply lower freight rates and many lines making losses which forces them to put off new building orders and repair.
Sri Lanka’s Employees Provident Fund is the second biggest shareholder of Colombo Dockyard with a 16.3 percent stake and big stakes also held by the state-owned Sri Lanka Insurance Corporation’s General and Life funds, the Sri Lanka Ports Authority, Employees Trust Fund, and National Savings Bank.