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Shipbuilding sees drop in profitability in H1

By ZHONG NAN | chinadaily.com.cn | Updated: 2013-07-24 17:39

The Chinese Association of the National Shipbuilding Industry reported sinking profits in the first half of this year.

Profits of 80 major shipbuilders monitored by the association totaled 3.58 billion yuan ($580 million), a 54 percent drop from the same period a year earlier.

A total of 20.6 million deadweight tons (DWT) of new vessels have been completed for both domestic and international shipowners in the first half. This represents a 36 percent decrease from the previous year.

However, shipyards received new orders of 22.9 million DWT, a 113 percent growth from the first half of 2012.

The nation's shipbuilding capacity accounted for 39.1 percent of the global industry, according to Clarkson Research Studies, British analysts of the shipping industry.

New orders accounted for 44.2 percent, and existing orders for 43.1 percent, of the industry worldwide.

Due to falling demand, many foreign shipowners are also delaying delivery and payment dates on new ship orders. Chinese shipyards are also confronting the problems of limited cash flow, lower freight rates and tight liquidity.

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