Volumes Continue Rising at Cosco Shipping Ports
- Business & Finance
Although total throughput recorded by China-based Cosco Shipping Ports Limited increased during the first six months of 2017, the company’s gross profit for the period was down.
For the six months ended June 30, 2017, Cosco Shipping Ports’ throughput was up by 11.8% to 41.78 million TEU from 37.35 million TEU handled in the first half of 2016, while throughput of bulk cargo stood at 41.59 million tons, rising by 0.4% from 41.42 million tons.
In the same period, the company’s gross profit dropped by 8.2% to USD 98.5 million from USD 107.3 million reported in the corresponding half of 2016.
While revenue increased by 0.3% to USD 275.7 million from USD 274.9 million, the group’s operating profit for the period surged to USD 385.5 million from USD 69.8 million reported a year earlier.
Profit from terminal companies in which the group has controlling stakes was mainly attributable to Piraeus Container Terminal in Greece and Guangzhou South China Oceangate Terminal.
Piraeus Terminal recorded a profit of USD 10.84 million in the first half of 2017, down by 39.4% from (1H2016: USD 17.9 million reported in the corresponding period last year. The decrease in profit was mainly attributable to completion of construction of the eastern part of Pier 3 of Piraeus Terminal at the end of September 2016, as well as commencement of operation of the phase I of western part of Pier 3 of Piraeus Terminal in August last year.
During the period, the throughput of Guangzhou South China Oceangate Terminal grew by 6.7% compared with the corresponding period last year. However, due to higher dredging costs and the impact of change in RMB exchange rate during the period, Guangzhou South China Oceangate Terminal recorded a profit of USD 7.72 million in the first half, down from USD 8 million seen in the first six months of 2016.