The adverse offshore vessel market conditions, contract cancellations and the further impact of contract re-negotiations has resulted in a negative financial performance for Colombo Dockyard during the year ended December 31, 2016, Chairman Dr Toru Takehara told shareholders in the company’s latest annual report.
Takehara however noted that despite these challenging circumstances, the Company has managed to achieve substantial progress towards reversing losses suffered in the previous year, once again proving its resilience in the face of a challenging market environment.
Given the challenging conditions prevalent in the offshore petroleum industry, the Company has worked to further diversify its client portfolio in order to ensure that our strategy of continuous growth with stable earnings is maintained moving forward.
“While we will continue to maintain our strong relationships with existing clientele, Colombo Dockyard is also focusing on the construction of specialized vessels for other market sectors.
Parallel to the rising global interest in renewable energy, we see significant opportunities for growth in the construction of support vessels for cable laying and offshore wind turbines. Additionally, the Company is also working to attract new inquiries for high-spec vessels, river vessels, and passenger boats for the tourism and leisure sector. “
“As more of vessels seek to achieve compliance with the global new standard, we anticipate a significant uptick in activity in terms of orders for ship repair and ship modification coming to Colombo Dockyard.”
Takehara further noted that Colombo Dockyard is seeking new business of ship building and ship repair, Colombo Dockyard anticipates a steady recovery in its financial performance and a return to profitability over the coming financial year and beyond.
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