CHINA Cosco and China Shipping Container Lines (CSCL) have received state grants, helping to boost third quarter earnings.
China Cosco recorded net profits of CNY1.62 billion (US$263 million) in the third quarter, reversing the net loss of minus -CNY1.04 billion recorded in the same quarter last year, reported Alphaliner.
The results for the latest quarter included earnings from the company's dry bulk shipping, container shipping, container terminals and container leasing businesses.
Its third quarter result included CNY1.52 billion (in state grants, of which CNY1.38 billion were related to Chinese government subsidies for vessel scrapping.
According to Alphaliner records, Cosco has scrapped 18 containerships of 500-4,200 TEU so far this year, with a total capacity of 44,200 TEU. The ages of the ships scrapped ranged from 15 to 25 years old.
The improved third quarter performance was however insufficient to reverse the losses from the first half of this year, as the cumulative net loss for the first nine months totalled minus CNY654 million.
In the first three quarters of the year, total government subsidies received by China Cosco totalled CNY1.65 billion.
Separately, China Shipping Container Lines (CSCL) also revealed that it had received CNY121 million in state grants, including CNY40 million that was received in September for the scrapping of four containerships.
CSCL reported net profits of CNY203 million in the third quarter, raising its cumulative net profits for the first nine months of this year to CNY664 million.
However, the reported earnings included various one-time gains totalling CNY971 million.
CSCL had disposed of its 100 per cent stake in China Shipping Terminal Development (CSTD) in June to a related company, for a total consideration of CNY3.42 billion from which most of the gains were booked.
If these extraordinary gains are excluded, CSCL's net earnings for the first nine months would be negative at minus CNY289 million. CSCL is expected to post a full year operating loss.
WORLD SHIPPING
06 November 2014 - 05:25
Cosco, CSCL post profits in 3Q on the back of government grants
CHINA Cosco and China Shipping Container Lines (CSCL) have received state grants, helping to boost third quarter earnings.
WORLD SHIPPING
06 November 2014 - 05:25
Cosco, CSCL post profits in 3Q on the back of government grants
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