Cosco Shipping Ports' H1 profit falls 13pc despite 4.5pc hike in revenue
CHINA's Cosco Shipping Ports' (CSP) net profit for the first half of the year dropped 12
CHINA's Cosco Shipping Ports' (CSP) net profit for the first half of the year dropped 12.5 per cent due to higher labour costs and a change in accounting standards.
Net profit for the six months ended June was US$147.8 million, compared with $169.0 million over the same period last year, the company said in a Hong Kong stock-exchange filing.
CSP - the biggest terminal operator in the world - saw its revenue rise to $517.9 million in the first half of 2019, an increase of 4.5 per cent.
Total throughput was 59,764,100 TEU, a 5.4 per cent increase on the same period in 2018. CSP also recorded a total throughput from subsidiaries of 12,445,333 TEU, a hike of 14.6 per cent, according to media reports.
CSP enjoyed growth across all its regions. Greater China, for instance, increased by 3.3 per cent to 46,015,330 TEU (1H2018: 44,558,562 TEU), and accounted for 77.0 per cent of the Group's total, the company said.
As well as that, the throughput of Mainland China (excluding Hong Kong and Taiwan) increased by 3.7 per cent to 43,675,110 TEU (1H2018: 42,097,856 TEU) accounting for 73.1 per cent of the Group's total.
The Bohai Rim region increased by 3.3 per cent to 19,298,356 TEU (1H2018: 18,677,784 TEU), of the Southeast Coast region increased by 2.8 per cent to 2,890,372 TEU (1H2018: 2,812,495 TEU), of the Southwest Coast region increased by 12.6 per cent to 724,795 TEU (1H2018: 643,599 TEU).
CSP's overseas terminals also performed well as it grew by 13.2 per cent to 13,748,770 TEU (1H2018: 12,150,188 TEU) and accounted for 23.0 per cent of the Group's total.
CSP said in a statement: 'Looking ahead, despite the fact that challenges do remain in the second half of 2019 with various uncertainties, global economic growth is supported to an extent by the market expectation that the low interest rate policy will be sustained.
'Given the uncertainties of macro-economy, it is difficult to forecast the outlook of global throughput growth. Cosco Shipping Ports is cautiously optimistic for the whole year. We expected that the equity throughput for 2019 would record high single-digit growth.
'Meanwhile, Cosco Shipping Ports will continue to step up the development of its terminal extended business to other terminals so as to further improve profitability and actively optimize shareholder return.'