HK's COSCO International Reports Strong Profit Growth
For the six months ended 30th June 2014, shipping services provider COSCO International has announced that its 2014 Interim Results show strong profit growth with Net Profit up 45% YOY.
- Strong profit growth: profit attributable to the equity holders surged by 45% to HK$190 million. The growth was mainly driven by:
- Marked increase of 103% YOY in ship trading agency's commission income with significant jump in volume of both scrapped ships and newbuild contracts, resulted from Chinese shipowners- accelerated fleet restructuring activity;
- 68% YOY increase in finance income generated from the Group's cash on hand with higher bank deposit interest rates
- Rebound of 374% YOY in profit contribution from the Group's joint venture, Jotun COSCO.
- Dividend: the Board has declared an interim dividend of 3 HK cents per share, increased by 50% YOY.
- Strong cash position: the Group had net cash of HK$6 billion as at 30th June 2014, which will support business expansion in the future.
Mr. Sun Jiakang, Chairman of the Board of COSCO International, commented:
"With the advantages of strong cash position, experienced professionals and a global service network, COSCO International will be seeing more development opportunities in existing and new business areas.
As for existing business, COSCO International will ensure the steady growth of shipping services business segments, and, at the same time, deepen corporate transformation and upgrade so as to strengthen and improve the profitability of core business.
As for expansion into new business, COSCO International will seize opportunities to further improve the construction of a global sales and service network, actively study on the new business development in shipping services related areas, as well as the upstream and downstream alongh the value chain of existing businesses.
With the full support from COSCO Group, the Company will make every effort to achieve a leap in the business development as soon as possible, and create great returns for shareholders."
About COSCO International
The company's core businesses include ship trading agency, marine insurance brokerage, supply of marine equipment and spare parts, production and sale of coatings and trading and supply of marine fuel and related products. The headquarters of COSCO International is in Hong Kong.