China Cosco profit fell 22pc to US$43.8 million, subsidy saves it from loss
CHINA Cosco net profit fell 22 per cent year on year to US$43.8 million in 2015, drawn on revenues of CNY57.4 billion, down 14 per cent.
CSCL ends independent life with 97.5pc plunge into US$448.5 million loss
CHINA Shipping Container Lines (CSCL's) results show a 97.5 per cent year-on-year net profit plunge into a CNY2.89 billion (US$448.5 million), drawn on revenues of CNY31.83 billion, down 12 per cent.
The revenue decline was attributed to weak Asia-Europe and Mediterranean container freight rates and overcapacity, the company said in a filing to the Hong Kong stock exchange.
China Shipping in January had forecast a loss of CNY2.8 billion for 2015.
These results are the CSCL's and Cosco's last under their old names. China’s state-owned Assets Supervision and Administration Commission announced approval in December for the reorganisation of China Ocean Shipping Group and China Shipping Group.
Under the new structure, China Cosco operates container ships and China Shipping is a leasing and financing company for vessels and boxes.
Cosco Pacific Ltd holds wharf assets held by China Shipping to operate the combined company’s terminals globally. China Shipping Development Co will be the focal point for oil- and gas-transportation business.
The combined Chinese company has 7.4 per cent of the global container shipping market, the largest share among Asian operators, according to Alphaliner.