Cosco International records drop in 2015 earnings

Net profit for 2015 decreased by 6.5% to HKD335.76m ($43.29m) compared to HKD358.97m in 2014.

Revenue for 2015 plunged by 20.9% year-on-year to HKD6bn, Hong Kong-listed Cosco International announced.

“During the year, the oversupply in the shipping industry still existed amid continued slowdown in the growth of international trade,” the company commented.

“Such industry downturn resulted in the pressure of stringent cost control by customers and delays in delivery of certain new build vessels faced by the company,” it said.

Looking into 2016, Cosco International said the global economy will experience deepening adjustment with sluggish recovery.

“The global shipping market will remain depressed, it is difficult to expect the situation of overcapacity will have a fundamental change in a short term, and the competition among the shipping enterprises will become more intense,” the company said.

“”It is expected that shipowners will maintain strict cost control, and the shipping services will still be confronted with substantial operating pressure.”