HONG KONG-listed Sinotrans Shipping has posted a 78 per cent decline in net profit year on year to US$20.1 million.
Sinotrans 2012 profit drops 78pc to US$20 million, revenue off 21pc
HONG KONG-listed Sinotrans Shipping has posted a 78 per cent decline in net profit year on year to US$20.1 million, drawn on revenues of $222.1 million, which fell 21 per cent.
Container shipping revenue was down 6.9 per cent to $21.42 million because of the sale of an old containership and a 6.1 per cent year-on-year reduction in company fleet's operational days.
Container shipping is a minor business for Sinotrans, with only nine box ships aggregating to 5,883 TEU, but it plans to develop the China-Japan/Korea routes. Container fleet utilisation last year was 99.5 per cent, better than 97.9 per cent posted in 2011, the company said.
International container sea borne demand was feeble in 2012 due to slow recovery of the global economy and the European debt crisis, said company executive director and deputy general manager Li Hua, adding that the Asia feeder market was also weak.
Sinotrans chairman Zhao Huxing, whose company owns one of China's largest dry bulk fleet, said: "The austere supply-demand imbalance dragged the shipping market into a gloomy environment, particularly in the dry bulk shipping sector."
Mr Li said container prospects depend on American and European recovery though global tonnage growth had slowed, making newbuilding prices attractive. This, he said, prompted Sinotrans to consider ordering new containerships because they are more cost effective than the older ones they would replace.
Sinotrans chairman Zhao also expressed hopes that the central government would re-launch a scheme to subsidise new vessel orders.