Cosco Pacific Q1 profit rises 6.1% on growth in overseas terminals

This was a 6.6% rise from the normalised $60.4m posted in the previous corresponding quarter when the contributions from Cosco Pacific's now divested 21.8% share in container manufacturer China International Marine Containers is stripped out.

Revenue also rose 11.2% to $212.5m.The Group’s total throughput growth of terminals business was satisfactory with an increase of 9.2% to 15.4m teu, Cosco Pacific said in a stock market announcement.

Throughput at terminals in which it has a share rose 12.3% to 4.4m teu, which in turn led to rising profits from the terminals business.The Group’s terminal companies in mainland China (excluding Hong Kong and Taiwan) saw a 6.7% rise in throughput to 12.5m teu. Reflecting the lower base but also higher potential of its overseas investments, Cosco Pacific's overseas terminals saw throughput rise by 26.5% to 2.2m from 1.7m teu previously.

The highly established markets of the Pearl River Delta and the Bohai Rim turned in the worst performances, rising just 2.8% and 5.6% to 3.9m and 6.1m teu respectively.

In the container leasing business, although new container prices rebounded in early 2014, leasing rental yields remained at low levels throughout the first quarter of the year, Cosco Pacific said. Meanwhile, resale prices remained under pressure and the returned containers had a higher net book value, resulting in a decline in profit from the disposal of returned containers. The group’s container fleet rose 2.6% to 1.9m teu and the overall average utilisation rate was stable at 94.6%, the same as the previous corresponding period.