Yangzijiang Shipbuilding Profit Doubles on Ship Sales

Yangzijiang Shipbuilding Holdings Ltd. (YZJSGD), the biggest Singapore-listed Chinese shipbuilder, said first-quarter profit doubled on higher sales of containerships.

Net income rose to 371.3 million yuan ($53 million) in the three months ended March 31, compared with 183.5 million yuan a year earlier, the Jiangyin-based company said in a statement today. Revenue jumped 86 percent to 1.69 billion yuan.

Yangzijiang has orders worth $6.8 billion and expects profit to advance more than 50 percent this year, it said in the statement. The company plans to increase its shipbuilding capacity by 2 million deadweight tons from 300,000 deadweight tons by the end of 2010, Singapore's Business Times reported today, citing Chairman Ren Yuan Lin. It's also considering raising the capacity at its yard in Jiangyin city by 20 percent, the newspaper said.

The shipbuilder has orders for delivery in 2011 and 2012 and expects to meet this year's target of 50 vessels, the report said. The company had 19 vessels under construction as of the end of March, after delivering five during the first quarter, it said in today's statement. Yangzijiang didn't pay a dividend.

To contact the reporter on this story: Simeon Bennett in Singapore at sbennett9@bloomberg.net.

To contact the editor responsible for this story: Jason Gale at j.gale@bloomberg.net.

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