Despite a rise in volumes and revenue, the net profit of Hong Kong-based port operator COSCO Shipping Ports plunged in the first quarter of 2019.
For the three months ended March 31, the company’s net profit was at USD 49.9 million, representing a drop of 27.9 percent compared to the same period a year earlier.
However, revenues was up by 4.1 percent year-over-year, reaching USD 247.7 million, while total throughput increased by 5.6 percent to 28.73 million TEU.
The port operator added that total throughput from subsidiaries was at 5.94 million TEU, a surge of 13.5 percent compared to the first quarter of 2018.
COSCO Shipping Ports explained that the Greater China region remains the major contributor. Total throughput of the region increased by 3.6 percent year-over-year to 22.1 million TEU, accounting for 76.9% of the group’s total throughput.
Bohai Rim region volumes were up by 3.8 percent to 9.19 million TEU, while Yangtze River Delta region volumes rose by 4.6 percent to 4.84 million TEU. Regarding Southeast Coast and other regions, volumes here decreased by 0.8 percent to 1.34 million TEU, accounting for 4.7 percent of the company’s total throughput.
Total throughput of the Pearl River Delta region increased by 3 percent reaching 6.39 million TEU, while the Southwest Coast region handled 16.3 percent more boxes.
Volumes at the company’s overseas regions were also up at 6.62 million TEU, representing a 13 percent rise.
“Although there are still uncertainties in the global economy in 2019, the market expects that Sino-US trade war may reach agreement, low interest rates environment continues and China and Europe will continue to strengthen cooperation to promote “Belt and Road Initiative”, which may gather momentum of growth for global economy,” COSCO Shipping Ports concluded.