China Merchants Energy Shipping returns to profit in Q1

The tanker and dry bulk arm of state-owned China Merchants Group posted a gain of RMB183.52m ($29.56m) in the first quarter as against a deficit of RMB70.87m in the same period of 2013.

Revenue rose 1.5% year-on-year to RMB660.44m.

The profit was higher than what the RMB140m that the company predicted earlier.

Shanghai-listed CMES attributed the improved results to improving operating conditions in the shipping market, allowing it to capture opportunities during the market upturn in the dry bulk and tanker shipping segments.

As part of its efforts to lower operating costs and renew its fleet, CMES is also disposing old VLCCs in phases, with 21-year-old VLCC Kai Li as the latest being sold to the scrapyard.