Sri Lanka shipyard December quarter net down 38-pct

EconomyNext – Colombo Dockyard said December 2014 quarter net profit fell 38 percent to 174 million rupees from a year ago with annual profits also lower as the prolonged slump in shipping took its toll.

Earnings per share for the quarter were 2.43 rupees, a stock exchange filing said.

Sales fell 16 percent to four billion rupees in the quarter from a year ago while cost of sales rose 20 percent, the yard, a unit of Japan’s Onomichi Dockyard Company, said.

Interim accounts filed with the stock exchange showed ship repair profits improved only marginally to 782 million rupees from 719 million rupees during the December 2014 quarter from the year before.

Earnings from ship building fell by more than half to 413 million rupees from 891 million rupees over the same period.

For the financial year ending 31 December 2014, EPS were 4.03 rupees with net profit down 69 percent to 290 million rupees while sales fell12 percent to 14.7 billion rupees.

Ship owners are putting off orders for new vessels and delaying repairs because their earnings have been reduced by the prolonged slump in shipping caused by an oversupply of tonnage and low freight rates.