Guangzhou Shipyard issues 2012 profit warning
Guangzhou Shipyard International (GSI) has warned that its net profit for 2012 is expected to plunge by 80% to 99% compared to 2011, Seatrade Asia online reports.
In the year ended 31 December 2011, the Chinese shipbuilder posted net profit of RMB518.33m ($83.25m).
“During the year 2012, as affected by the decline of the shipbuilding market, the prices of the ships under construction dropped sharply as compared with the same period last year, which resulted in the decrease in profits of the company derived from shipbuilding. Moreover, the company has made impairment losses in respect of relevant new secured orders for vessels and relevant ships under construction,” GSI said.
