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PR Newswire
29 Apr 2020 1Q2020 Result for Yangzijiang Shipbuilding (Holdings)
https://links.sgx.com/FileOpen/Announcem...eID=608796
(click for sgx announcement)
Revenue, profits etc about half.
What's interesting is their pipeline is strong and they even hire temporary workers to catch up on delivery.
Extracted from Page 13:
"As the COVID-19 pandemic spreads around the world and has impacted commercial and manufacturing activities in many economies, it is widely expected that the global economy could enter the worst recession since the 1930s. Global shipping has seen decreased demand so far in 2020, and the situation is unlikely to improve significantly in the second half of 2020. This has caused significant disruption to the rebalancing of the shipping demand and supply (new ships) that had been taking place in the past few years. According to Clarksons Research, the global fleet is expected to grow by 2.7%, while seaborne trade tonnage could decline by 5.1% in 2020. The weak sentiment globally and lack of visibility also make it very challenging for shipowners to plan their new order placement. In 1Q2020, the Group secured new orders for 7 vessels with a total contract value of USD 360 million. These new orders include 3 units of 82,000DWT bulk carriers, 2 units of 40,000DWT bulk carriers and 2 units of 14,000TEU containerships.
There was a termination of one shipbuilding order for one (1) unit of 157,000DWT oil tanker in 1Q2020, for which Group had received a total of USD12 million from the original buyer, and this 157,000DWT oil tanker had been resold to a new buyer earlier this month. After taking into account of the abovementioned termination, as at 31 March 2020, the Group had an outstanding order book of USD 2.9 billion for 69 vessels. These orders will keep the Group’s yard facilities at a healthy utilization rate up to 2021 and provide a stable revenue stream for at least the next 1.5 years.
The Group’s operations have become increasingly efficient over the past few years, represented by the steady increase in vessel deliveries, and it has become more resilient and ready in dealing with unforeseen situations like the COVID-19 pandemic. After a short disruption due to an extended lockdown period as required by the Chinese government after the Chinese New Year, the Group has taken proactive measures to resume production. By the end of March, almost 100% of the workers have resumed working. The company has also activated longer shifts and hired additional workers wherever needed since March to make up for the lost time. Construction of vessels is in good progress and the delivery schedule is within control. The Group has also utilised cloud-based technologies to facilitate the exchange of paperwork for vessel deliveries, thereby solving the problem of travel restrictions.
Since YAMIC started operation in August 2019, it has made steady progress in the construction and delivery of vessels. As it continues to ramp up the production and play out the synergies on cost and technology, YAMIC is expected to play an increasingly instrumental role in leading the Group’s effort in achieving sustainable growth, while building itself into the best shipyard in the world for mid-sized clean energy vessels, LNG carriers and dry bulkers.
With so many uncertainties to both the COVID-19 situation and global economy, the Group will remain vigilant and work closely with its customers to weather this challenging time together, to minimise any potential negative impact on its financial performance as much as possible."
Stay home and stay healthy, everyone.
https://links.sgx.com/FileOpen/Announcem...eID=608796
(click for sgx announcement)
Revenue, profits etc about half.
What's interesting is their pipeline is strong and they even hire temporary workers to catch up on delivery.
Extracted from Page 13:
"As the COVID-19 pandemic spreads around the world and has impacted commercial and manufacturing activities in many economies, it is widely expected that the global economy could enter the worst recession since the 1930s. Global shipping has seen decreased demand so far in 2020, and the situation is unlikely to improve significantly in the second half of 2020. This has caused significant disruption to the rebalancing of the shipping demand and supply (new ships) that had been taking place in the past few years. According to Clarksons Research, the global fleet is expected to grow by 2.7%, while seaborne trade tonnage could decline by 5.1% in 2020. The weak sentiment globally and lack of visibility also make it very challenging for shipowners to plan their new order placement. In 1Q2020, the Group secured new orders for 7 vessels with a total contract value of USD 360 million. These new orders include 3 units of 82,000DWT bulk carriers, 2 units of 40,000DWT bulk carriers and 2 units of 14,000TEU containerships.
There was a termination of one shipbuilding order for one (1) unit of 157,000DWT oil tanker in 1Q2020, for which Group had received a total of USD12 million from the original buyer, and this 157,000DWT oil tanker had been resold to a new buyer earlier this month. After taking into account of the abovementioned termination, as at 31 March 2020, the Group had an outstanding order book of USD 2.9 billion for 69 vessels. These orders will keep the Group’s yard facilities at a healthy utilization rate up to 2021 and provide a stable revenue stream for at least the next 1.5 years.
The Group’s operations have become increasingly efficient over the past few years, represented by the steady increase in vessel deliveries, and it has become more resilient and ready in dealing with unforeseen situations like the COVID-19 pandemic. After a short disruption due to an extended lockdown period as required by the Chinese government after the Chinese New Year, the Group has taken proactive measures to resume production. By the end of March, almost 100% of the workers have resumed working. The company has also activated longer shifts and hired additional workers wherever needed since March to make up for the lost time. Construction of vessels is in good progress and the delivery schedule is within control. The Group has also utilised cloud-based technologies to facilitate the exchange of paperwork for vessel deliveries, thereby solving the problem of travel restrictions.
Since YAMIC started operation in August 2019, it has made steady progress in the construction and delivery of vessels. As it continues to ramp up the production and play out the synergies on cost and technology, YAMIC is expected to play an increasingly instrumental role in leading the Group’s effort in achieving sustainable growth, while building itself into the best shipyard in the world for mid-sized clean energy vessels, LNG carriers and dry bulkers.
With so many uncertainties to both the COVID-19 situation and global economy, the Group will remain vigilant and work closely with its customers to weather this challenging time together, to minimise any potential negative impact on its financial performance as much as possible."
Stay home and stay healthy, everyone.
