Colombo Dockyard PLC saw a dip in their profits according to their Annual Report 2014.
"We experienced space constraints for the ship repairs during the year, due to the construction of the two passenger vessels taking up nearly 25% of the yard space available for ship repairing," said Ranil Wijegunawardane, Managing Director/ CEO.
Nevertheless, the ship repair sector reported a marginal growth in 2014, against the previous year.
This sector is expected to show improved results in years to come with more space now available for ship repair work.
As a result of the unplanned cost overflows from the two passenger vessels discussed above, our revenue dropped by 14% against 2013. Our profitability plummeted by almost 75%, against 2013. We were also not able to offset the higher costs through rupee depreciation, as the rupee remained exceptionally stable throughout the year.
However, our profitable ship repair business contributed significantly towards alleviating the overall impact on profitability.
We closed the year with profits after tax at Rs 209.2 Mn, compared to Rs 823.7 Mn in 2013. The lower profitability of the Colombo Dockyard also weighed down Group profitability by 68.5% against the previous year.
Due to our continuing focus on improving workplace safety standards, I am happy to report a 36% reduction in accidents at work, during the year.
Courtesy: Daily News 14 August 2015