Cosco Corporation (Singapore) posted stronger earnings in the second quarter on revenue increase at the shipyard, but turnover from the dry bulk shipping and other businesses fell.

Net profit in the quarter ended 30 June 2014 rose 19% to SGD14.3m ($11.47m) from SGD12.04m in the same period of last year.

Revenue also increased 29% year-on-year to SGD1.15bn due mainly to higher revenue from shipyard operations such as ship repair, shipbuilding and marine engineering.

The group delivered three bulk carriers, one pipelay heavylift vessel, one tender barge and one floatover launch barge during the second quarter.

Turnover from its dry bulk shipping and other businesses decreased 6.1% year-on-year to SGD12.3m in the second quarter as the current short term rates were lower than the more favourable charter rates in the previous corresponding period.

“Our group’s performance amid the lingering industry headwinds vindicates our resilience under trying conditions,” said Wu Zi Heng, vice chairman and president of Cosco Corporation (Singapore).

As at 30 June 2014, the group’s orderbook stood at $8.1bn with progressive deliveries up to 2016.

As the group continues construction in 2014 on new shipbuilding contracts that were secured in recent years at low contract values, the group expects operating margins on these new shipbuilding projects to continue to be under great pressure.

In dry bulk shipping, the group expects the positive impact from any rebound in BDI to be subdued as expansion in the global bulk carrier fleet continues to outpace demand.