CMES Poised to Reap Fruits from Profit Surge
State-run energy shipping giant China Merchants Energy Shipping (CMES) revealed that it expects its net profit for 2018 to increase by 84-104 percent year-on-year.
As such, the tanker and bulker owner estimates that its net profit would stand between RMB 1.1 – 1.2 billion (approximately USD 165 million), exceeding last year’s RMB 614 million result.
CMES explained that its bullish expectations were driven by acquisitions, deliveries of new Valemax ore carriers and improved earnings of its very large crude carrier fleet (VLCC). What is more, both the dry bulk and the VLCC sectors experienced notably recovery in the recent period boosting further the company’s results.
Eight Capesize bulkers have been delivered to CMES since the beginning of 2018 until today, data from VesselsValue shows. Two more Valemaxes remain to be delivered this year, Pacific Excellence and Pacific Longevity.
CMES ordered ten Valemax ships in 2016, out of which Qingdao Beihai Shipbuilding Heavy Industry secured four units. Four more Valemaxes were entrusted to Shanghai Waigaoqiao Shipbuilding (SWS), whereas the remaining two were assigned to China Merchants Heavy Industry (Jiangsu).
The ore carriers are intended for a long-term charter with Brazilian miner Vale.
World Maritime News Staff