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China Cosco stays in the red, faces delisting threatsChina Cosco stays in the red, faces delisting threats

China Cosco Holdings is continuing its struggle to reverse its weak financial position following another quarter of net loss in the three months ended 30 September 2013, putting the company dangerously close to a delisting.

Lee Hong Liang, Asia Correspondent

October 31, 2013

1 Min Read
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China's largest state-owned shipping conglomerate posted a net loss of RMB1.04bn ($170.63m) in the third quarter, sinking further from a loss of RMB1.53bn in the same period a year ago.

Revenue was recorded at RMB15.88bn, down 16.7% compared to RMB19.06bn a year earlier.

The shipping giant will accumulate three consecutive years of losses if it fails to return to profit in the 2013 financial year, meaning that it will face a delisting under the listing regulation.
In the first nine months of this year, China Cosco remained in the red on deficit of RMB2.03bn. Despite the losses, the figures are a significant improvement from the nine-month loss of RMB6.4bn in the same period of last year.

China Cosco has sold stakes in Cosco Logistics and Cosco Container Industries to offset its losses, and cut back on the size of its dry bulk vessel charters and expenses. It also sold three commercial properties to its parent Cosco Group to raise RMB3.67bn.

Meanwhile, China Cosco's container shipping business shipped 2.31m teu of boxes in the third quarter, an increase of 7.8% year-on-year. Its dry bulk arm carried capacity of 50.81m tonnes, representing a decrease of 9.5% over the corresponding period of last year.

As at 30 September 2013, the group operated a fleet comprising of 178 containerships and 318 dry bulk carriers.

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dry bulk shipping

About the Author

Lee Hong Liang

Asia Correspondent

Singapore-based Lee Hong Liang provides a significant boost to daily coverage of the Asian shipping markets, as well as bringing with him an in-depth specialist knowledge of the bunkering markets.

Throughout Hong Liang’s 14-year career as a maritime journalist, he has reported ‘live’ news from conferences, conducted one-on-one interviews with top officials, and had the ability to write hard news and featured stories.

 

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