Cosco Shipping Development Readies for 252 Pct Profit Jump

Image Courtesy: Pixabay

Hong Kong-listed Cosco Shipping Development expects to see a 2017 full-year profit increase of 252 percent when compared to figures from the previous year, reaching RMB 1.3 billion (USD 205.4 million).

The company’s full-year net profit for 2016 was RMB 368.6 million (USD 58 million).

The company said that the estimates were based on preliminary review and that final results would be released in March 2018.

The increase in the net profit was attributed mainly to the completion of the company’s restructuring in 2016 that included disposal of container shipping business, which was badly hit by the downturn in the sector and was bleeding red ink.

Furthermore, the container leasing and manufacturing markets have gradually recovered as a result of the improvement of the global economy and the international shipping markets since the fourth quarter of 2016, positively impacting the profitability of the company’s container leasing and container manufacturing segments.

COSCO Shipping Development added that its overall profitability continues to grow following the expansion of the leasing and investment businesses of the company.

The profit alert comes in the wake of the company’s plans to establish a shipping fund with China Cinda Asset Management Co., Ltd.

The move is being pursued in line with the company’s investment in the financing sector of the shipping industry.

Initially, the fund will dispose of a total of USD 154 million and Cosco plans to take a 49.95 pct in the fund or an investment worth approximately USD 77 million (RMB 500 million).

As disclosed, the shipping fund will be used for financing of ship assets including non-performing assets and restructuring programs.

World Maritime News Staff

 

Share this article

Follow World Maritime News

In Depth>

Events>

<< May 2018 >>
MTWTFSS
30 1 2 3 4 5 6
7 8 9 10 11 12 13
14 15 16 17 18 19 20
21 22 23 24 25 26 27
28 29 30 31 1 2 3

ReCAAP ISC Piracy and Sea Robbery Conference 2018

The Conference aims to provide a platform for sharing and exchange of views between the speakers/panellists and audience comprising…

read more >

Europort 2018

From 15-17 May 2018, the 12th edition of Europort Romania willl take place in the IDU Hall in Constanta…

read more >

THE 7TH EDITION OF NAVALIA, INTERNATIONAL SHIPBUILDING EXHIBITION 2018

The event wanted to be from the beginning a reference for the naval sector and to serve as a tool to attract investors and contracts for the industry…

read more >

BlueWeek2018

The BlueWeek2018 will be held on 28-29-30 May in Rotterdam, under the auspices of the Blue Forum…

read more >