CMES first half profit boosted by subsidy and tanker market

Net profit for the six months period was registered at RMB1.57bn ($235.05m), almost a three-fold increase from the gain of RMB558.34m in the same period of 2015.

Revenue for the first half improved by 9.8% year-on-year to RMB3.16bn.

Shanghai-listed CMES, the tanker and bulk shipping unit of China Merchants Group, said it received RMB792.18m in government subsidy during the first half as part of the scrap-and-build policy.

The Chinese shipowner also enlarged its tanker shipping fleet with revenues rising by 10% year-on-year and time-charter equivalent earnings up by 14%. The dry bulk shipping business, however, continued to stay under pressure due to the severely oversupplied market as CMES’ capesize and ultramax vessels turned to operating losses while only the VLOC segment reaped operating profit.

As at 30 June 2016, the company operated 42 oil tankers with a combined capacity of 11.88m dwt and 17 bulkers with a total capacity of 3.23m dwt.