Sri Lanka’s Dockyard makes return to profit in June quarter

ECONOMYNEXT – Sri Lankan ship builder Colombo Dockyard said it made a net profit of 182 million rupees in the June 2015 quarter compared with a loss of 52 million rupees a year ago.

Earnings per share were 2.53 rupees in the June quarter, according to a stock exchange filing by the yard, a unit of Onomichi Dockyard of Japan.

Colombo Dockyard group sales rose 14 percent to 3.6 billion rupees in the June 2015 quarter from a year ago with gross profit shooting up 206 percent to 600 million rupees.

Other income and net finance income fell, the accounts showed. 

Last year the yard was affected by cost overruns and delays in delivery of passenger vessels for an Indian customer while this year lower international steel prices have helped reduce costs.

Ship building accounted for about 75 percent of sales in 2014 and ship repairs about 24 percent.

In the six months to June 2015, the accounts showed ship building revenue fell to 4.6 billion rupees from 5.2 billion rupees but gross profit shot up sharply to 595 million rupees from 141 million rupees.

Ship repair revenue rose but gross profit fell to 369 million rupees from 413 million rupees in the first half of 2015 compared with the same 2014 period.  (Colombo/August 14 2015)

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