Colombo Dockyard sustains turnaround with second consecutive profitable quarter
Strong ship repair performance, narrowing shipbuilding losses and lower finance costs drive continued recovery Colombo Dockyard PLC continued its return to profitability during the second quarter of its 2026/27 financial year, recording its second consecutive profitable quarter and further strengthening the turnaround seen since the beginning of the current financial year. For the three months […]
Colombo Dockyard PLC achieved a second consecutive profitable quarter in the second half of its 2026/27 financial year, marking a significant turnaround since the beginning of the year. The ship repair division was the primary driver of this recovery, with revenue increasing by 32.4% to Rs. 8.85 billion and gross profit rising by 53.4% to Rs.
3.28 billion during the period. Shipbuilding revenue, although lower due to ongoing projects, saw a narrowing of gross losses to Rs. 838.4 million as legacy loss-making projects were completed and new contracts secured. Net finance costs decreased by 40.7% to Rs. 294.5 million, benefiting from the Rights Issue and debt restructuring.
This resulted in a profit attributable to shareholders of Rs. 164.9 million for the quarter, up from a loss of Rs. 563.6 million in the same period last year. For the six months to September 2026, profit attributable to shareholders reached Rs. 251.2 million, compared with a loss of Rs. 1.37 billion in the corresponding six months of the previous year.
The improved financial position is supported by a stronger balance sheet, with current assets at Rs. 33.09 billion against current liabilities of Rs. 23.58 billion, giving a current ratio of approximately 1.4 times, and cash reserves of Rs. 17.27 billion. Despite an increase in administrative expenses due to inflation, the company maintained its positive earnings trajectory through higher operational margins and lower financing expenses.
Managing Director Thimira S. Godakumbura highlighted the progress, stating that the company has now delivered two consecutive profitable quarters, supported by the strong performance of the ship repair business and improved financial discipline.
Written by urgent.news from The Island Sri Lanka's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
