Cosco International posts 49% jump in 2014 profit

Cosco International has achieved a 49% jump in net profit in 2014 over the previous financial year despite a drop in revenue.

The Hong Kong-listed company posted a full year profit of HKD359.97m ($46.4m) compared to a profit of HKD241.61m in 2013.

Revenue, however, fell 18.5% to HKD7.59bn 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 are expected to remain and business prospects of the shipping services industry will unavoidably be under pressure,” the company said.

On a brighter note, China has been actively stepping up policy research on the strategic planning of “One Belt and One Road” and “Yangtze River Economic Belt”, construction of free-trade zones and release of a series of policies to support the shipping industry.

“For each segment of shipping services businesses of the group, it presented favourable and new market opportunities, laying a solid foundation for sustainable healthy development of shipping and related industries,” Cosco International commented.

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