Seatrade Maritime is part of the Informa Markets Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

China Cosco Holdings posts reduced earnings for 2015

China Cosco Holdings posts reduced earnings for 2015
China Cosco Holdings has posted lower earnings in 2015 but the decrease was cushioned by substantial subsidies from the government for demolition of elderly vessels.

Net profit for the year ended 31 December 2015 was recorded at RMB283.39m ($43.81m), down 21.8% from RMB362.53m in 2014.

Revenue fell by 14.2% year-on-year to RMB57.4bn due to the sluggish market situation both in container shipping and dry bulk shipping.

The reduced earnings were offset by other income of RMB4.75bn, an increase from RMB718.57m in 2014, received in the form of government subsidies for scrapping vessels.

Following the merger of China Cosco Group and China Shipping Group, China Cosco Holdings’ strategic position moving forward will be to focus on container shipping services from integrated shipping services.

Its dry bulk shipping business will be transferred to the expanded parent group, or Coscocs.

“In 2016, the container shipping market will still experience a tough operating environment and the supply and demand will remain imbalanced,” China Cosco Holdings said, adding that it will also face “complicated challenges in reform and restructuring.”