Yangzijiang Q4 net profit leaps to 607.8m yuan on advance payments

YANGZIJIANG Shipbuilding Holdings (YZJ) saw its quarterly net profit jump to 607.8 million yuan (S$124.5 million) from 41.5 million yuan a year ago on the back of a huge increase in other income due to recognition of advance payment from terminated shipbuilding contracts and lower expenses.

Revenue for the China-based shipbuilder in the three months to December 2016 came in 76 per cent higher at 5.5 billion yuan from 3.1 billion yuan.

The shipbuilding business recorded a revenue of 3.98 billion yuan in the quarter during which nine vessels were delivered according to schedule - higher than six delivered in FY2015's fourth quarter.

For the full year, YZJ's net profit fell 29 per cent to 1.8 billion yuan on the back of a 6 per cent drop in revenue to 15 billion yuan.

Earnings per share for the full year stood at 45.73 yuan cents from 64.19 yuan cents a year ago.

The company has proposed a final dividend per share of four Singapore cents versus the previous year's 4.5 Singapore cents.