Driven by strong tanker shipping market tailwinds, the Chinese state-owned shipping operator China Merchants Energy Shipping (CMES) posted an almost fivefold surge in its 2015 net profit.
Namely, compared to a net profit of RMB 200.26 million (USD 30.7 million) seen in 2014, CMES reported a 476 percent jump in its 2015 annual net profit reaching RMB 1.15 billion (USD 176.6 million).
The Chinese government’s subsidy, received in September to boost the company’s efforts to dispose of the aging vessels and replace them with new tonnage, also contributed to a positive net profit.
The company’s revenue for the full year stood at RMB 6.15 billion, a 136 percent increase over RMB 2.6 billion revenue reported in 2014, mainly contributed by CMES’ joint venture China VLCC, which expanded its fleet and increased its carrying capacity.
While the tanker market pushed the company into the black, CMES’ dry bulk shipping business remained sluggish due to the market downturn in 2015.
The company’s financial announcement was followed by CMES’ latest order of ten very large ore carriers (VLOCs) at three Chinese yards.
The new vessels, which will feature 400,000 dwt each, are valued at USD 850 million.
World Maritime News Staff