Colombo Dockyard sales revenue in excess of Rs. 7b

REVENUE: The Colombo Dockyard Limited (CDL) a leading ship-repairer and shipbuilder in the region recorded sales revenue of Rs 7,333 million with a profit after tax of Rs 607 million for 2006.

According to the annual report, the company set a revenue target of Rs 6,000 million with a net profit off 3.5 per cent on revenue was another plan set up under the three year management plan of the company and could surpass these targets in the second year of the three year plan.

The ship-repair sales revenue of Rs 3,317 million with an operating profit of Rs 1,019 million has been

 recorded in the year 2006.

This was the highest ever results recorded by the company in 2006. Where the contracts for the building of two numbers of 80t anchor handling tug and supply vessels were signed with Greatship (India) Limited in August 2006 for the total value of US$ 29.5 million.

This is the very first contract for the construction of Anchor Handling Tug Boats by CDL. CDL has also successfully completed 10 numbers fast patrol craft project to the Sri Lanka Navy.

Further, the 35m and 40m Fisheries Protection Vessels are also under construction to be delivered this year.

The company is also involved in the heavy engineering business as well, the annual report revealed.

The present success is mainly attributed to constant rationalisation of production facilities including the aforesaid capital investment of over Rs 800 million, vigorous marketing drive to obtain several international new building orders, supported by the shareholders, customers and employees and recent favourable shipping and shipbuilding markets.

As for 2007, as presently forecasted, net profit appears to be rather than that of 2006, in spite of the expected sales revenue to be more or less similar to the year 2006.

This is due to the substantial volume of work done in 2007, which will be completed only in the year 2008.

(HS)