The shipping services arm of China Ocean Shipping, Cosco International reported its profit attributable to equity holders for the year ended 31 December 2014 rose 48.6% year-on-year to HK$359 million ($46.3 million).
Revenue, however, fell 18.5% to HK$7.59bn as contributions from the core shipping services businesses decreased.
Cosco International noted that the overhang of shipping capacity continues to exist and the shipping market will remain sluggish. “Cost control by shipowners is expected to remain and business prospects of the shipping services industry will unavoidably be under pressure,” the company said.
The great increase was attributed to the marked increase in operating profits of coatings, ship-trading agency, and marine equipment and spare parts businesses.
It was also attributed to the 52% y/y increase in financial income generated from the Group's cash, as well as the 511% y/y growth in profit contribution from the Group's joint venture, Jotun COSCO, the company stated in its filling to the exchange.
"With the strong cash position, seasoned professionals, and a global service network, COSCO International will see more development opportunities," said Sun Jiakang, Chairman of COSCO International in the company statement. "In the future, the Group will step up its efforts to develop 'integrated shipping services platform'."