Cosco Shipping 2016 Profit Dip
Cosco Shipping International (Hong Kong) has seen its profit for the year ended December 31, 2016 drop 29 percent to HKD 236.5 million (USD 30.4 million) from HKD 362 million (USD 46.6 million) reported a year earlier.
Although the company’s operating profit dropped to HKD 544.2 million for the full year from HKD 690.7 million reported in 2015, Cosco Shipping International said that its revenue for the period increased to HKD 7.4 billion from HKD 5.9 billion.
In 2016, world economy has experienced deep adjustment, while international trade growth remained subdued. The international shipping market supply and demand remained unbalanced, while dry bulk shipping index and container freight rate index had hit a record low last year.
Facing such severe business environment, Cosco Shipping International insisted on the working principles of "securing steady growth, ensuring profitability, and enhancing service quality and efficiency", and coped with the market changes proactively by improving service awareness, seeking new profit drivers and strengthening cost control, so as to maximise the profit.
During the year, Cosco says Sinfeng Marine Services Pte. Ltd. (Sinfeng), a wholly-owned subsidiary engaged in the supply, trading, and brokerage services of marine fuel and related products, achieved a total marine fuel products sales volume of 2,114,548 tonnes, up 84 percent year on year from 1,146,911 tonnes in 2015.
Looking forward, the Group will fully seize the opportunity presented by the business reorganisation of Cosco Shipping, and develop the ‘‘shipping services industrial cluster’’ which can offer strong supporting services for shipping with independent profit drivers, aiming to become a world class and the leading shipping services company in China.
