State-run Chinese conglomerate COSCO Shipping Holdings is projecting a net income for the first half of 2017 of around 1.85 billion yuan (U.S. $272 million).
COSCO Shipping Holdings expects a profit of 1.85 billion yuan (U.S. $272 million) for the first half of 2017, fueled by an improved shipping market, the company said in a stock market statement on Thursday, according to a report from Reuters.
This would be quite an improvement from the 7.2 billion yuan loss COSCO recorded for the first half of 2016.
“Freight rates for container shipping operations have increased year-on-year, container volumes have grown 34.72 percent, and earnings have continued to grow from the base set in the fourth quarter of last year,” COSCO said.
For the first quarter of 2017, COSCO recorded higher net profits, revenues and volumes compared to the corresponding 2016 period.
The state-run shipping conglomerate is a member of the OCEAN Alliance vessel sharing agreement along with CMA CGM, APL, Evergreen Line and Orient Overseas Container Line (OOCL).
Trading in COSCO’s shares has been suspended since May 17, and analysts have continuously speculated the carrier may be gearing up to purchase OOCL parent OOIL, but the Hong Kong-based ocean carrier has continued to deny these rumors.
COSCO expects $272m profit for first half 2017
