GSI warns of 50% fall in profit
Guangzhou Shipyard International (GSI) has warned that its net profit for the first three quarters of 2012 is expected to decrease by more than 50% year-on-year, Seatrade Asia online reports.
“It is also expected that the group will record a loss for the third quarter of the year ending on 30 September 2012,” GSI said in an announcement.
Hong Kong-listed GSI recorded a net profit of RMB408.85m for the first three quarters of 2011 and a profit of RMB145.46m for the third quarter of last year.
GSI blamed the decline of the shipbuilding market which resulted in the fall in profits of the company derived from shipbuilding. “Moreover, in order to maintain normal production and operation, the company has secured orders for nine vessels in the first three quarters of year 2012, impairment losses in respect of eight of those vessels could be made,” it said.
