Colombo Dockyard PLC on track towards steady financial progress

16 November 2015 06:30 pm

By Shabiya Ali Ahlam

•     Revenue improvement across all segments
•     Ship building emerge as highest revenue contributor
•     Heavy engineering show fastest growth

Having battled a period of struggle, Colombo Dockyard PLC is observed to be making continued financial progress as the September quarter (3Q15) saw its net profit soar 405 percent year-on-year (YoY) to Rs.183 million, largely due to improved performance in the ship building segment and increased activity in heavy engineering.

Revenue of the nation’s premier ship building and repair facility edged up 27.6 percent YoY to Rs.4.04 billion in 3Q15, indicating that the entity has either been successful in bagging new projects or has delivered orders previously placed.

The earnings per share which stood at Rs. 0.51 in 3Q14 improved to Rs.2.55 in 3Q15.

While the cost of sales expanded by 21.09 percent YoY to Rs.3.4 billion, the group’s gross profit for the period under review stood at Rs. 357 million, an 89.5 percent YoY increase.

Colombo Dockyard saw its distribution expenses contract by 40.57 percent YoY with it having reduced from Rs. 8.09 million to Rs. 4.8 million in 3Q15, but its other operating expenses expanded by 1170 percent to Rs. 3.3 million in the said quarter.

The consolidated statement on financial position for the first nine months showed that the total assets improved to Rs. 18.6 billion compared to the Rs. 16.2 billion the previous year. The net earnings per share moved to Rs. 156.65 from Rs. 152.57 in the same period.

However, interest bearing borrowings appreciated by 102 percent YoY to Rs. 4.8 billion, whereas bank overdraft increased to Rs. 74 million from Rs. 35.8 million.

The group’s revenue from the ship building segment improved to Rs. 7.4 billion from Rs.6.9 billion for the nine months ended 30 September. Revenue from ship repairs increased to Rs.3.03 billion compared to the Rs.2.9 billion achieved the previous year, whereas performance in heavy engineering increased by Rs. 604 million to Rs. 682 million for the first three quarters.

Colombo Dockyard is a unit of Japan’s Onomichi Dockyard Company which holds 51 percent of the entity with 36,648,051 shares. The government through various state-owned institutions collectively holds 35 percent of the equity of the company.