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China Merchants Energy Shipping returns to profit in 2014

China Merchants Energy Shipping returns to profit in 2014
China Merchants Energy Shipping (CMES) has returned to the black in 2014 on the back of the tanker shipping market recovery and lower bunker costs.

The tanker and bulker shipowner posted a profit of RMB200.26m ($32.27m) in 2014, erasing the loss of RMB2.18bn in 2013.

Revenue remained largely stable at RMB2.6bn last year compared to RMB2.57bn in the previous financial year.

For the financial year 2015, Shanghai-listed CMES is aiming to double its revenue to RMB5.4bn through stringent cost cutting.

Looking ahead, CMES said the oversupply of ships continue to be a long term challenge for the shipping industry.

The Chinese shipowner has been renewing its fleet as it disposed of elderly vessels, taking advantage of subsidies worth a total of RMB521.7m in 2014 handed out by the government.