Cosco Shipping International (HK) profit down 34.7% for 2016
Cosco Shipping International (Hong Kong) Co has reported a fall in annual net profit on the back of the downturn in the international shipping industry marked by lingering oversupply.
The integrated shipping services provider of China Cosco Shipping Corporation Limited (Cosco Shipping) posted a profit of HKD236.5m ($30.4m) in 2016, down 34.7% compared to HKD362.06m in 2015, MANA correspondent reported.
Revenue last year, however, improved by 23.8% year-on-year to HKD7.43bn on higher contributions from its business segments in ship trading agency, insurance brokerage and marine fuels.
Looking ahead, Cosco Shipping International (HK) pointed out in particular that its container coating business will continue to face challenges with rising price of raw materials and intense market competition.
“Although the overall imbalance between supply and demand in the shipping sector still exists, it will be relieved somehow,” the company commented.
“The shipping market is on the rise, it will become more and more rational, and the structural recovery of the industry will further enhance market confidence,” it added.