Weighing on the bottomline, CSDC said fuel costs rose 18% to RMB2.81bn, making up almost half of total operating costs. Overall, operating costs rose 11% to RMB5.85bn from RMB5.26bn in the same period last year. Although shipping volume rose 13% to 186.2bn tonne-nautical miles, total revenue still slid 9% from RMB6.14bn in the first half of 2011.
While CSDC is in the process of diversifying into the LNG transportation business, almost all its current market segments suffered from poor market conditions, exacerbated by high operating costs. Tankers saw a loss of RMB131.9m, coal shipping saw a loss of RMB129.1m while other bulk shipments saw a loss of RMB81.5m.
"In the first half of 2012, the growth of the global economy slowed down, the global shipping market continued its downturn since 2011, and every market segment experienced a sustained turndown," CSDC said in a stock exchange announcement. "With the continuous increase of operating costs, the global shipping industry is in an uncommon situation with operational difficulties," it added.
CSDC warned that it forecasts a loss for the third quarter as it does not expect market conditions to improve significantly.
Copyright © 2024. All rights reserved. Seatrade, a trading name of Informa Markets (UK) Limited. Add Seatrade Maritime News to your Google News feed.
