China Shipping Development foresees fivefold increase in H1 profit

The Shanghai and Hong Kong-listed Chinese shipping firm said the six-month profit is forecast at RMB250m ($40.3m), representing a more than fivefold increase from the gain of RMB42.6m in the same period of last year.

CSDC is the oil tanker and dry bulk shipping arm of China’s state-owned conglomerate China Shipping Group (CSG).

CSDC attributed the positive results to an “increase in freight rates in the international oil transportation market in 2015, efforts made by the group to further strengthen its control over costs, resulting in notable achievement particularly savings over fuel costs and labour costs”.

It added that a “deferred tax asset of approximately RMB200m was recognised as income of the group in the first half of 2015.”