China Cosco Guides H1 Profits at $306mln
China Cosco Holdings, the flagship unit of Cosco Group, is expecting a net profit of Yuan1.9bn ($306m) for the first half, against the Yuan2.3bn loss during the same period last year.
Compared to the same period of last year, the company turned losses into profits in the first half of 2015. The imbalance between supply and demand in the international shipping market did not improve in the first half of this year.
The above swing is mainly due to the receipt of subsidies for the decommissioning and upgrading of vessels, and the effort of the company in increasing revenue and reducing operation costs through various measures.
"The container and dry bulk shipping market remained sluggish, leading to the year-on-year fall in freight rate," says the company statement.
During the period, the company obtained subsidies of ship scraping and renewal and took measures to increase revenue and cut expenditures, according to a filing to the stock exchange.
The board believes that the expected profit… is due to the receipt of subsidies for the decommissioning and upgrading of vessels which will be included in the profit and loss for the six months ended 30 June 2015, and the effort of the company in increasing revenue and reducing operation costs through various measures,” Cosco said in a statement.
