COSCO SHIPPING Ports reports sluggish first half results

The port terminal operator division of China COSCO Shipping Corp. posted net profits attributable to equity shareholders of the company of $171.9 million on revenues of $275 million, year-over-year declines of 8.1 percent and 0.6 percent, respectively.    COSCO SHIPPING Ports Limited, formerly known as COSCO Pacific, reported profits attributable to equity shareholders of the company of $171.9 million for the first six months of 2016, an 8.1 percent decline from the corresponding period last year.
   COSCO SHIPPING Ports is the port terminal operator division of China COSCO Shipping Corporation Limited (COSCOCS), the newly merged shipping conglomerate formed from state-run firms COSCO and China Shipping.
   “The adoption of merger accounting has resulted in changes in certain relevant comparative figures, which have been restated to conform with the current year’s presentation,” COSCO SHIPPING Ports said.
   Revenues for the period slipped 0.6 percent year-over-year to $275 million. Although revenues increased at Piraeus Container Terminal S.A. and Guangzhou South China Oceangate Container Terminal Company Limited, it was not enough to offset the decrease in revenues from some terminal companies in which the group has controlling stakes in China.
   The global market was volatile during the first six months of the year. “Global economic recovery remained sluggish and China reported negative growth in its foreign trade during the first half of 2016, both of which constituted pressure on the group’s container terminal business,” COSCO SHIPPING Ports said.
   However, the company’s total container throughput rose 3.5 percent from the first six months of 2015 to 46 million TEUs, primarily resulting from the continued outstanding performance at Piraeus Terminal.
   On March 18, the company completed the acquisition of all issued shares of China Shipping Ports Development Co., Limited, which became a wholly owned subsidiary of the company.
   On March 24, the company completed the disposal of Florens Container Holdings Limited and recognized a $59 million gain from the disposal.
   In April, COSCO SHIPPING announced that COSCO Container Lines would form the OCEAN Alliance with CMA CGM, OOCL and Evergreen Line, which is expected to officially commence operations in April 2017.
   The following month, the group announced the acquisition of 35 percent equity interest in Euromax Terminal Rotterdam B.V. for an aggregate consideration of 125.4 million euros. Completion is expected to take place in September.
   As of June 30, COSCO SHIPPING Ports had a combined total of 149 berths at its container terminals with a handling capacity of 89.9 million TEUs, and 20 bulk cargo berths with a total handling capacity of 50 million tons.