On January 29, China State Shipbuilding Corporation (CSSC) released the Announcement on 2023 Increase in Annual Results.
The announcement disclosed that CSSC is expected to achieve a net profit of RMB2.7 billion to RMB3.2 billion in FY2023, representing an increase of 1,470.95% to 1,761.87% year on year, and is expected to have a loss of up to RMB500 million after deducting the non-net profit, compared to a non-net profit of -275 million in 2022.
China Shipbuilding said that last year, due to the disposal of offshore platforms by subsidiaries generated non-monetary asset exchange gains and losses and the receipt of government grants and other matters, the non-recurring gains and losses for the period amounted to about RMB 3.2 billion ( US$ 446 million ). Also, since the new shipbuilding market maintained a good development trend in 2023, the company’s hand-held order structure continued to improve with the gradual clearing of low-priced ship orders previously.
Last December, CSSC announced that its subsidiary Waigaoqiao Shipbuilding and its holding subsidiary Guangzhou Shipbuilding International(GSI) signed a new shipbuilding contract for several 10,800 CEU LNG dual-fuel car carriers (PCTC) with overseas companies on December 5, with a total contract value of about US$1.46 billion. It is reported that the contract sum is more than RMB 10 billion at spot exchange rate, accounting for about 17% of CSSC’s operating revenue in 2022, which makes it the world’s first order exceeding 10, 000 CEU super-large PCTCs.
Currently, the shipbuilding industry is booming, and since 2023, the price of new ships has continued to climb, and the global new shipbuilding market will remain highly active under the support of renewal demand. While, at the same time, the supply of ship slot is tight, and with obvious competitive characteristics of orders to the head of the enterprise gathering, also gives the ship enterprise certain bargaining space. It is expected that the price of new ships in 2024 will continue to maintain a relatively high level.
