Hong Kong-listed Sinotrans Shipping said it expects to recorded a “substantial decrease” in net profit for the six months ended 30 June 2015 compared to the previous corresponding period, or “a considerable loss”.
Sinotrans Shipping attributed the anticipated poor financial results to the continual slowdown of growth in international trade and dry bulk seaborne volume due to the slowdown of economy growth in China and other emerging markets.
The company also blamed the oversupply of dry bulk carriers, leading to a sharp decline in charter rates.
The expected loss would also be caused by the disposal of aged vessels of the group.
“The board would also like to inform the shareholders of the company and potential investors that the financial position of the gorup remains stable,” Sinotrans Shipping said.
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