China Shipping bulk affiliate boost net profits

China Shipping bulk affiliate boost net profits

   China Shipping Development Co. Ltd., a Shanghai-based, stock market-listed affiliate of China Shipping Group engaged in bulk shipping, increased its net profits 73 percent in 2003 to RMB1 billion ($124 million) from RMB591 million in 2002.

   The Chinese company reported rising shipping demand in dry bulk and oil products, and a 10-year high in the international dry bulk freight index.

   China Shipping Development’s revenue increased 19 percent last year to RMB4.9 billion ($590 million) from RMB4.1 billion in 2002. Profit from operating activities climbed 36 percent over the same period to RMB1.3 billion ($151 million) in 2003 from RMB920 million.

   “China’s national economy maintained a high-speed growth even under the SARS attack,” the shipping company said. “The power, metallurgy, building material, petrochemical, and other industries presented rapid development. As the economy grew, the domestic demand for petroleum, coal and other energy goods constantly increased, driving upward the shipping demand in domestic and foreign trade.”

   China’s domestic shipping trade accounted for RMB3 billion ($365 million) of the company’s revenue in 2003, and its growing international activities produced revenue of RMB1.9 billion ($225 million), up 50 percent on 2002.

   China Shipping Development reported gross profit margins of 22.7 percent in coal transport and 32.8 percent in oil transport as a percentage of revenue.