Shipper sails into wider H1 net loss
By Richard Fu |
August 30, 2012, Thursday
|
Print Edition
Print Edition
CHINA COSCO Holdings Co, the nation's largest shipper, sailed into a wider loss in the first half of this year on falling freight rates and high operating costs.
The flagship listed arm of state-owned China Ocean Shipping (Group) Co also blamed the weakening global economy, China's growth slowdown and the persistent surplus of ships.
Its first-half net loss widened to 4.87 billion yuan (US$767 million), or 0.48 yuan per share, from 2.71 billion yuan, or 0.27 yuan per share, a year earlier, according to a filing to the Shanghai Stock Exchange yesterday.
Although container shipping rates recovered in the first half, they may not continue in the second half due to competition, COSCO Holdings said.
Global container shipping demand may grow just 5.9 percent this year to 160 million TEUs (twenty-foot equivalent units), according to Clarkson this month, down from an earlier projection of 6.3 percent by the shipbroker.
COSCO Holdings also said a rebound in the dry bulk market may occur as China's economic stimulus measures could lift imports for commodities.
COSCO Holdings lost 10.5 billion yuan last year. Should it report a second straight annual loss, it could be put on the "special treatment" list by the Shanghai bourse. A stock will be delisted if losses extend into a third year.
The flagship listed arm of state-owned China Ocean Shipping (Group) Co also blamed the weakening global economy, China's growth slowdown and the persistent surplus of ships.
Its first-half net loss widened to 4.87 billion yuan (US$767 million), or 0.48 yuan per share, from 2.71 billion yuan, or 0.27 yuan per share, a year earlier, according to a filing to the Shanghai Stock Exchange yesterday.
Although container shipping rates recovered in the first half, they may not continue in the second half due to competition, COSCO Holdings said.
Global container shipping demand may grow just 5.9 percent this year to 160 million TEUs (twenty-foot equivalent units), according to Clarkson this month, down from an earlier projection of 6.3 percent by the shipbroker.
COSCO Holdings also said a rebound in the dry bulk market may occur as China's economic stimulus measures could lift imports for commodities.
COSCO Holdings lost 10.5 billion yuan last year. Should it report a second straight annual loss, it could be put on the "special treatment" list by the Shanghai bourse. A stock will be delisted if losses extend into a third year.
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