The state-backed firm's results were battered by poor performance at its container and dry bulk sections but the logistics, terminals and container leasing businesses recorded growth.
The group's revenue dipped to RMB84.64bn last year compared to RMB96.49bn a year ago.
“During the period, freight rate dropped significantly due to oversupply while costs continued increase driven by soaring oil price. As a result, the profit of the group saw a sharp decline,” China Cosco said.
Bunker cost was the chief culprit in squeezing earnings of the group's container shipping and dry bulk shipping businesses. China Cosco said bunker costs accounted for 25.4% and 22.1% of operational cost of container shipping and dry bulk shipping respectively.
“In view of the excessive shipping capacity and serious unbalanced regional supply and demand, the international container market of container liners will remain challenging,” China Cosco said.
In the dry bulk shipping, the group expected that the market will slow down in the first half of 2012 and pick up again in the second half. “Nevertheless, the large delivery pressure will depress the recovery of the market,” it said, referring to growth rate of global dry bulk shipping capacity at 10.8% this year.
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