Cosco Shipping Ports profit up 42.9pc to US$324 million, sales up 57pc

COSCO Shipping Ports, a leading global port operator, declared that its 2018 adjusted net profit increased 42

29 March 2019 - 19:00

COSCO Shipping Ports, a leading global port operator, declared that its 2018 adjusted net profit increased 42.9 per cent year on year to US$324.6 million, drawn on revenues of US$1.4 billion, an increase of 57.6 per cent.

'Cosco Shipping Ports is progressing towards another year of growth iwith the unique advantages of backing up by parent company and Ocean Alliance,' said vice chairman and managng director Zhang Wei.

Total throughput was 117,365,360 TEU, up 17.1 per cent year on year. Of this was 7.8 per cent organic growth. Total throughput from subsidiaries was 22,507,686 TEU, up 29.7 per cent and total equity throughput was 37,062,172 TEU, an increase of 15.8 per cent.

'I am proud to announce that we have achieved robust growth in 2018 despite uncertainties casting shadow over the global trade,' said Mr Zhang.

Backed by the increased calls by the OCEAN Alliance and parent company at the subsidiaries, as well as the contributions from newly acquired terminals, we have achieved ahead of the market growth of 17.1 per cent in total throughout for the year,' he said.

'With the strong support from parent company and the OCEAN Alliance as well as debut of Abu Dhabi Terminal and added capacity at Cosco-PSA Terminal in 2019, Cosco Shipping Ports is well positioned to continue to outperform the market, especially throughput growth,' said Mr Zhang.

'While committed to globalisation, we will actively participate in the reorganization of major port groups in China to enlarge the group's operation scale and influence in domestic market.'

In 2018, throughput of the Greater China region increased by 13.8 per cent to 92,597,126 TEU (2017: 81,361,521 TEU) for the year and made up 78.9 per cent of the group's total, said the release accompanying the results.

Performance of the Pearl River Delta region was rather weak compared with other regions in China, throughput of the region increased marginally by 1.3 per cent to 27,388,896 TEU (2017: 27,049,188 TEU). Throughput of Yantian Terminal increased by 3.6 per cent to 13,159,705 TEU compared with last year's 12,703,733 TEU, while Hong Kong decreased by 6.6 per cent compared with 2017, mainly due to competition from neighbouring area.

Operation scale of the Group in Southwest Coast remained small in the year, throughput of the region increased slightly by one per cent to 1,371,051 TEU (2017: 1,357,005 TEU). Planned to enhance presence in the region, Cosco Shipping Ports took 4.34 per cent stake in Beibu Gulf Port Co Ltd by subscribing shares in the company in December 2018.

The Bohai Rim region also delivered strong growth, throughput soared by 35.7 per cent to 38,328,815 TEU compared with last year's 28,244,975 TEU; mainly because QPI has a year-full contribution in 2018 while last year only had eight-month.

Throughput of the Yangtze River Delta region made up 16.9 per cent of the Group's total and increased by 0.9 per cent to 19,808,646 TEU (2017: 19,630,693 TEU) for the year.

Nantong Tonghai Terminal was inaugurated on 30 June 2018. With three container berths and one bulk berth, Nantong Tonghai Terminal delivered 264,255 TEU container throughput in its trial operation during the year.

Throughput of the Southeast Coast region increased by 12.2 per cent to 5,699,718 TEU (2017: 5,079,660 TEU). Xiamen Ocean Gate Terminal increased throughput by 31.2 per cent to 1,968,613 TEU (2017: 1,501,001 TEU) for the year, mainly due to increased calls by the OCEAN Alliance.

Performance of overseas terminals posed a strong growth in the year. With contributions from newly acquired terminals including the CSP Spain Group and CSP Zeebrugge Terminal and the supports from shipping alliances and parent company, throughput of the overseas portfolio increased by 31.5 per cent to 24,768,234 TEU (2017: 18,840,664 TEU) for the year.

The CSP Spain Group delivered throughput of 3,622,200 TEU and throughput of CSP Zeebrugge Terminal increased by 24.0 per cent to 392,484 TEU compared with 316,448 TEU in 2017. Backed by the continuous support from the OCEAN Alliance and other shipping alliances, Piraeus Terminal achieved 19.4 per cent growth in volume to 4,409,205 TEU (2017: 3,691,815 TEU) for the year.

Going forward, the release said: 'It is expected that macroeconomic and geopolitical uncertainties will continue in 2019 and likely to create headwinds in some regions in the year.'.


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