Colombo Dockyard says not publishing 4Q results due to order delays

IT ADDED THAT THE BOARD, HAVING OBTAINED PROFESSIONAL ADVICE, WAS NEGOTIATING WITH THE CUSTOMERS WITH REGARD TO THE ABOVE MATTERS

The Colombo Dockyard PLC on Thursday informed shareholders it would not publish its fourth quarter (4Q15) financial statements due to delays in orders.

Acknowledging t here could be a potential impact on the price of the company’s stock, Colombo Dockyard in a filing to the Colombo Stock Exchange said the Board was unable to release unaudited financial statements for the final quarter until the negotiations of the orders were closed.

“Colombo Dockyard entered into contracts with customers for the purpose of manufacturing and delivering new ships. However, due to adverse global economic conditions, particularly due to the drop in oil prices, customers have indicated their inability to proceed with some orders on the originally agreed terms and conditions,” the company explained in the filing. It added that the board, having obtained professional advice, was negotiating with the customers with regard to the above matters said thus was not in a position to release the results for the said period till the deals were firm. Colombo Dockyard said it would keep its shareholders and the investing public fully informed of any future developments and material information relating to the matter.

The company’s September quarter (3Q16) saw net profit soar 405 percent yearon-year (YOY) to Rs.183 million, due to improved performance in the ship building segment and increased activity in heavy engineering. The earnings per share, which stood at 51 cents in 3Q14 improved to Rs.2.55 for the said period.

Colombo Dockyard is a unit of Japan’s Onomichi Dockyard Company which holds 51 percent of the entity with 36,648,051 shares. The government through various state-owned institutions collectively holds 35 percent of the equity of the company.