COSCO Shipping Int’s Earnings Surge as Market Recovers
- Business & Finance
COSCO Shipping International (Hong Kong) Limited witnessed a rise in its earnings during the first half of 2017, driven by long-awaited signs of recovery in the shipping industry.
For the six months ended 30th June 2017, the group’s profit attributable to the equity holders grew by 42% to HKD 206 million (USD 26.3 million), compared to HKD 144.8 million seen in the same period of 2016.
Benefiting from the recovery of shipping market, the number of new-build delivery and second-hand vessels was significantly up. The core business shipping service maintained a steady growth and its profit before income tax increased by 17% year-on-year.
Similarly, revenue for the period jumped by 49% to HKD 3.8 billion (USD 485.6 million) from HKD 2.55 billion reported in the first half of 2016, mainly driven by increases in segment revenues of marine fuel and other products, marine equipment and spare parts, coatings as well as ship trading agency.
In the first six months of 2017, the global economy saw an upward trend in growth with improving market confidence, which in turn brought about the signs of recovery for the shipping industry.
The rational competition and cooperation in the shipping industry further facilitated the positive growth momentum in the shipping market.
“However, the shipping industry will remain subdued by excess shipping capacity for a prolonged period of time, the company said.
Looking ahead, the global economy will continue its recovery momentum, as it is expected to see the fastest growth in 2017 over the past six years. At the same time, there are numerous favourable factors in the shipping industry:
“We are expecting the shipping industry will show the upward trend in the next few years. However, the factors of the intensifying trade protectionism, the increasing geopolitics risks, and the highlighted structural issues, etc., will remain the grey rhinos to the shipping industry which cannot be neglected,” COSCO Shipping International added.