Cosco Shipping Development Readies for 252 Pct Profit Jump
The company’s full-year net profit for 2016 was RMB 368.6 million (USD 58 million).
The company said that the estimates were based on preliminary review and that final results would be released in March 2018.
The increase in the net profit was attributed mainly to the completion of the company’s restructuring in 2016 that included disposal of container shipping business, which was badly hit by the downturn in the sector and was bleeding red ink.
Furthermore, the container leasing and manufacturing markets have gradually recovered as a result of the improvement of the global economy and the international shipping markets since the fourth quarter of 2016, positively impacting the profitability of the company’s container leasing and container manufacturing segments.
COSCO Shipping Development added that its overall profitability continues to grow following the expansion of the leasing and investment businesses of the company.
The profit alert comes in the wake of the company’s plans to establish a shipping fundwith China Cinda Asset Management Co., Ltd.
The move is being pursued in line with the company’s investment in the financing sector of the shipping industry.
Initially, the fund will dispose of a total of USD 154 million and Cosco plans to take a 49.95 pct in the fund or an investment worth approximately USD 77 million (RMB 500 million).
As disclosed, the shipping fund will be used for financing of ship assets including non-performing assets and restructuring programs.
World Maritime News Staff