Cosco posts Q1 loss, approves VLOC pact with Vale

China Cosco posted a loss of RMB1.03bn ($166.17m) in the first three months of 2015, managing to narrow its loss of RMB1.88bn seen in the same period of last year.

The quarterly revenue, however, went up 4.4% year-on-year to RMB14.83bn.

For the quarter ended 31 March 2015, the shipping volume of the group’s container shipping business was 2.34m teu, an increase of 12.8% compared to the previous corresponding period.

Cosco’s box fleet stood at 183 containerships with a total capacity of 891,496 teu, with 10 on order with a combined tonnage of 117,960 teu.

In its bulker business, Cosco operated 221 dry bulk vessels with shipping capacity of 21.11m dwt at the end of the first quarter. The group had 40 newbuilding orders representing a total of 3.47m dwt.

Meanwhile, the board of directors of Cosco has also approved the management of the company to implement a cooperation framework dated September 2014 over four VLOCs owned by Vale.

Vale and Cosco had in September last year entered into a deal over a 25-year long term contract of affreightment (COA) where Cosco will build and operate 10 VLOCs, and purchase four existing VLOCs owned by Vale.

In the same month of 2014, Vale also struck a deal with China Merchants Energy Shipping (CMES) to order another 10 VLOCs for a similar 25-year COA with the mining giant.