COSCO SHIPPING International grows profits, revenues in first half 2017

As of June 30, 2017, COSCO SHIPPING International, the investment arm of China COSCO Shipping, had net cash of HK $6.42 billion, which it said will provide strong capital support for major acquisitions and expansion of existing businesses in the future.    COSCO SHIPPING International (Hong Kong) Co., Ltd.’s profits attributable to equity holders of the company surged 42 percent year-over-year during the first half of 2017 to $205.56 million Hong Kong (U.S. $26.27 million), fueled by increase in net exchange gains and net finance income, the company said in its most recent financial statements.
   COSCO SHIPPING International is the investment and financing subsidiary of COSCO SHIPPING (Hong Kong) Co., Ltd., which is a wholly-owned subsidiary of China COSCO Shipping Corporation Ltd. (COSCO SHIPPING).
   Revenues at COSCO SHIPPING International for the first half of 2017 reached HK $3.81 billion, up 49 percent from the corresponding 2016 period.
   Revenues from the core shipping business, which accounted for 94 percent of the group’s revenues, reached $3.59 billion for the first half of 2017, up 59 percent year-over-year.
   “The increase was attributable to increases in segment revenues of marine fuel and other products, marine equipment and spare parts, coatings, as well as ship trading agency,” the company said.
   Meanwhile, revenues from the general trading segment, which accounted for the remaining 6 percent of the group’s revenues, tumbled 27 percent year-over-year to HK $220.39 million for the first half.
   COSCO SHIPPING International said the shipping industry improved during the first six months of the year, as the global economy saw an upward trend in growth during the period, but cautioned that the industry will likely remain subdued by excess capacity for a prolonged period of time.
   On Jan. 1, 2017, COSCO SHIPPING International completed the acquisition of CSHT Marine Machinery Suppliers Ltd., making it a wholly-owned subsidiary.
   “The acquisition, on the one hand, expanded the size of the existing relevant business, and, on the other hand, facilitated synergy creation through economies of scale and cost reduction, thus generating more profits for the group,” the company said.
   As of June 30, 2017, COSCO SHIPPING International had net cash of HK $6.42 billion, which it said will provide strong capital support for major acquisitions and expansion of existing businesses in the future.