Strong Tanker Market Drives CSDC’s Profit Surge

  • Business & Finance

Chinese shipping major China Shipping Development Company Limited (CSDC) achieved 34.95% higher profit for 2015 totaling in RMB417 million (USD 64.3 million) when compared to figures from 2014, mostly due to a very strong tanker market.

The group’s revenue was on course and amounted to RMB 12.213 billion, representing a decrease of approximately 0.50% as compared to 2014.

In 2015, the volume of cargo shipped by the company was 184 million tonnes, up 1.1% year-on-year while the transport turnover reached around 470.9 billion tonne-nautical miles, up by 9.5% year-on-year.

With respect to the outlook for 2016, CSDC said that the international economic environment remains complex, however world economic growth is expected to rebound slightly coupled with slow growth trend in the next few years.

As newbuilding delivery gains momentum the company anticipates the oil transport market in 2016 to be weaker than that in 2015.

“In respect to dry bulk market, in 2016 the global dry bulk shipping demand growth will be about 0.6% whilst the global capacity is expected to grow 2.8%, well below the growth in demand; our destocking efforts will further increase, iron ore, coal demand will shrink further. To this end, in 2016 domestic and international dry bulk shipping market will remain at low level,” the company added.

In 2016, CSDC expects to add 5 new oil tankers and dry bulk vessels with a total tonnage of 150,000 deadweight tonnes of shipping capacity, and 3 new LNG vessels with a total shipping capacity of 525,000 cubic meters.

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