Hong Kong-listed Sinotrans Shipping turned a USD 1.86 million net profit in 2014 despite an 8% drop in revenue, which stands at USD 1.21 billion.
In 2013, the dry bulk and container shipping company posted a USD 0.64 million loss.
Even though the annual operating loss was USD 27.6m, investment gains from the cash raised through the 2007 IPO covered the difference and pushed the company to profit.
Annual revenues from dry bulk and container shipping fell by 13.1% and 1.3%, respectively, due to a weak dry bulk market and a capacity oversupply in the container shipping segment.
In 2015, Sinotrans expects the trend of weak recovery, and unbalanced development of global economy to continue.
”Shipping enterprises will still face a host of challenges such as demands shortage, high costs, tight capital and narrow profit margins,’‘ Sinotrans says in their financial statement. ”According to the prediction from Clarkson’s, the growth of dry bulk shipping capacity will outstrip the growth of demand again in 2015.”
With regard to the Intra-Asia container shipping market, the company expects the weak balance situation to continue in 2015.
”Though the improved shipping demand may consume a certain amount of shipping capacity, it is unlikely to bring a substantial change in the market oversupply,” Sinotrans says.”However, large shipping companies’ responses toward the changing supply-demand relationship and their degree of alliance remain crucial factors to the freight rate. Facing current market situation, our Group will adhere to the operating shipowner business mode.”
World Maritime News Staff