China Shipping’s net profits up 40.1%, plans container-related expansion
China Shipping Container Lines today reported its net profits for the first half of the year soared 40.1 percent to 2.15 billion Renminbi ($265.4 million), and also said it intends to expand its involvement in container shipping related markets.
For the period ended June 30, China Shipping posted operating profit of Renminbi 2.76 billion ($340.7 million), up 25.3 percent over the same period last year. Revenues were up 36.4 percent to Renminbi 13.5 billion ($1.66 billion).
The carrier said it attributed the results “to the dramatic increase of its shipping capacity to 299,000 TEUs through optimization of its fleet structure and improvement of its core competitive strengths, and thanks to its continual implementation of flexible resource allocation strategy and strict cost control measures.”
In May, China Shipping overtook COSCO Container Lines as the largest Chinese container carrier, when measured in container fleet capacity.
China Shipping said it maintained its average increase in oil price far lower than the overall increase through various measures including locking the prices for some oils, controlling the on-board oil in storage, and sailing at fuel-economic speeds.
The carrier said the positive results have determined it to explore other container-related businesses, in particular wharf and logistics businesses.
“Based on the market situation, CSCL will enter the wharf and logistical businesses in a right time in forms of joint venture or acquisition to facilitate a diverse development of the Group,” China Shipping said in a statement.