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China Merchants Energy Shipping returns to the black in H1

China Merchants Energy Shipping returns to the black in H1
China Merchants Energy Shipping (CMES) returned to the black with a profit of RMB253.55m ($41.25m) in the first half of 2014 even as revenue dipped.

Net profit in the first six months was recorded at RMB253.55m as against a loss of RMB137.49m in the previous corresponding period, the Shanghai-listed bulker and tanker owner said.

Revenue during the period fell 8.4% year-on-year to RMB1.19bn.

CMES noted that the oil tanker shipping market has performed better during the first half compared to the corresponding period of 2013, but the second half outlook is expected to be gloomy as overcapacity and low rates continue to pose a challenge.

In the dry bulk sector, the market has yet to adequately absorbed excess tonnage and freight rates continue to stay suppressed. CMES commented.

It added that the second half prospects remain uncertain, and China continues to play a key role in driving demand for the bulk market.