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CMES sees earnings jump in first half

CMES sees earnings jump in first half
China Merchants Energy Shipping (CMES) recorded a jump in earnings in the six months ended 30 June 2015, due mainly to higher contributions from its tanker shipping business.

Net profit for the first half was registered at RMB558.34m ($87.23m), a surge of 120.2% compared to RMB253.55m in the same period of last year.

Revenue also rose by 142% year-on-year to RMB2.88bn as the company benefitted from increased tanker shipping activity, despite an operating loss at its dry bulk shipping business.

“We are cautious about the prospects for dry bulk shipping for the second half of this year, but the overall market condition should be better than the first half,” Shanghai-listed CMES said.

For tanker shipping, China’s continuing imports are expected to drive the market and the drop in bunker fuel prices have led to lower operating costs, according to CMES.

“On the whole, we expect the tanker shipping market to maintain a positive outlook in the second half, and more so in the fourth quarter peak season,” it said.

As at 30 June 2015, CMES boasted a fleet of 34 VLCCs, seven aframax tankers, seven capesize bulkers, six supramax bulkers and six LNG carriers.