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SIPG posts lower H1 profit in weak shipping market

SIPG posts lower H1 profit in weak shipping market
Shanghai International Port (Group) Co (SIPG) has posted softer profit in the first half amid the overall weak global shipping market and slowing growth of China’s economy, the port operator said.

Net profit in the January to June 2016 period was registered at RMB2.92bn ($437.16m), down 5.8% from RMB3.1bn in the same period of last year, SIPG said in its latest results announcement.

First half revenue came up to RMB15.42bn, increasing 4.4% from RMB14.77bn in the year-ago period.

Shanghai, world’s busiest container port, recorded a first half throughput of 17.89m teu, down marginally by 0.7% from 18.02m teu seen in the previous corresponding period.

SIPG said the first half container volumes of 17.89m teu met 48.4% of its annual box throughput target.

“The global shipping industry continues to be weighed down by excessive tonnage and the financial health of many shipping firms has remained weak, leading to slowing port businesses as well,” SIPG stated.