Net profit during the quarter decreased to S$27.6m from S$31.9m a year ago mainly due to lower profit contributions from the dry bulk shipping operations, said Singapore-listed Cosco Corp.

Second quarter revenue slipped 2.1% year-on-year to S$975.3m due to a decline in shipyard revenue.

In the first six months ended 30 June 2012, Cosco Corp posted a 19.6% decline in net profit to S$55.4m.

“With excess capacity in the shipping industry and the uncertain global economic conditions, shipowners may be reluctant to place new orders for vessels and the group may experience a decline in new orders in shipbuilding,” said Wu Zi Heng, vice chairman and president of Cosco Corp.

As at 30 June 2012, the group's orderbook stood at $5.9bn with progressive deliveries up to 2014. New orders received in the first half of this year amounted to about $1bn.

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