China Merchants Energy Shipping sees profits double in 2018

China Merchants Energy Shipping (CMES) expects to record around RMB11.3-RMB12.5bn net profit in 2018, $1.84bn a huge increase of 84%-104% year-on-year.

The company’s improved performance was due to the contribution delivery of a Very Large Ore Carrier (VLOC) fleet and the improvement of dry bulk business. In addition, the very large crude carrier (VLCC) market rebounded strongly in the fourth quarter of 2018 and brought positive effects to its financial sheet. 

CMES recently received one 400,000 tonne-class VLOC through its subsidiary Hong Kong Ming Wah Shipping (HKMW). The vessel was built by China Merchants Heavy Industry (Jiangsu), it is one the ten VLOCs China Merchants Energy Shipping ordered. Four of the ten VLOCs were built by Shanghai Waigaoqiao Shipbuilding (SWS) and four were built by Qingdao Beihai Shipbuilding Heavy Industry, the remaining two were assigned to China Merchants Heavy Industry (Jiangsu).

Incorporated in Hong Kong, HKMW is the dry bulk arm and a subsidiary of China Merchants Energy Shipping Co., Ltd (CMES). 

The company currently owns and operates twenty 400,000 tonne-class VLOCs and another four in order. 

Posted 22 January 2019

© Copyright 2019 Seatrade (UBM (UK) Ltd). Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of Seatrade.

Katherine Si

China Correspondent

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