CMES Poised to Reap Fruits from Profit Surge

BulkerIllustration. Image Courtesy: Pxhere under CC0 Creative Commons license

State-run energy shipping giant China Merchants Energy Shipping (CMES) revealed that it expects its net profit for 2018 to increase by 84-104 percent year-on-year.

As such, the tanker and bulker owner estimates that its net profit would stand between RMB 1.1 – 1.2 billion (approximately USD 165 million), exceeding last year’s RMB 614 million result.

CMES explained that its bullish expectations were driven by acquisitions, deliveries of new Valemax ore carriers and improved earnings of its very large crude carrier fleet (VLCC). What is more, both the dry bulk and the VLCC sectors experienced notably recovery in the recent period boosting further the company’s results.

Eight Capesize bulkers have been delivered to CMES since the beginning of 2018 until today, data from VesselsValue shows. Two more Valemaxes remain to be delivered this year, Pacific Excellence and Pacific Longevity.

CMES ordered ten Valemax ships in 2016, out of which Qingdao Beihai Shipbuilding Heavy Industry secured four units. Four more Valemaxes were entrusted to Shanghai Waigaoqiao Shipbuilding (SWS), whereas the remaining two were assigned to China Merchants Heavy Industry (Jiangsu).

The ore carriers are intended for a long-term charter with Brazilian miner Vale.

World Maritime News Staff

Share this article

Follow World Maritime News

In Depth>

Events>

<< Jun 2019 >>
MTWTFSS
27 28 29 30 31 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

Defence Safety Conference 2019

The Defence Safety Conference returns to London this October as the only event solely dedicated to enhancing safety across all aspects of defence.

read more >

Electric & Hybrid Marine World Expo Conference 2019

Electric & Hybrid Marine World Expo Conference is the world’s only international conference…

read more >

GreenTech in Shipping USA Forum 2019

GreenTech in Shipping USA Forum is an event for Maritime leaders who want to unlock successful business formula of the industry!

read more >

Global Sustainable Shipping Forum 2019

The event will provide valuable insights from conference sessions, great networking opportunities and will offer…

read more >