Revenue also fell to RMB31.06bn from RMB33.16bn previously as "there was no substantial improvement in the imbalance between supply and demand in the international shipping market, the container and dry bulk shipping markets remained weak and freight rates had also dropped as compared to the same period of last year and remained at low level," the company said in a stock market announcement.
The red ink was stemmed somewhat by selling assets, something China Cosco is continuing to do with a related announcement to also sell majority stakes in three commercial properties to its parent Cosco Group. The stakes in Sunshine Plaza and Cosco Plaza phase II in Qingdao, Shandong province, and Cosco Plaza in Shanghai’s Hongkou district are estimated to be worth about RMB3.67bin.
Earlier this year, stakes in Cosco Logistics and Cosco Container Industries Limited were sold. The company also reduced he size of dry bulk vessel charters and expenses,
China Cosco is desperately trying to return to the black this year to avoid being de-listed as this will be its third consecutive year of losses.
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