[280811.EN.SEA] Cosco Pacific Increases First Half Profit 24.8pc To US$237 Million

COSCO group's terminal operator, Hong Kong-listed Cosco Pacific, posted a year-on-year 24.8 per cent first half net profit increase to US$237 million, drawn on revenues of $278.6 million, up 25.4 per cent.

"Of the top 10 container ports in mainland China, ports in the Bohai Rim region recorded outstanding results, while the throughput growth of Shenzhen port and Shanghai port were below the national average due to the slowdown in Europe and the United States," said the company.

Revenue from the terminal operations and container leasing, management and the sale of properties increased 44 per cent to $149.5 million, said the company, in a statement to the Hong Kong stock exchange accompanying interim results.

Gross profit increased 71 per cent to $119.3 million, largely credited to increased revenues from the Piraeus Container Terminal in Greece, a wholly owned subsidiary as well as the reclassification of Guangzhou South China Oceangate Container Terminal from a joint venture to a wholly owned unit.

The Piraeus Terminal handled 484,280 TEU in the first half of the year, representing an increase of 28.5 per cent. Piraeus Terminal recorded a significant increase in the volume of transhipment cargo as its major customer has increased the port calls since May.

Cosco Pacific container throughput grew 19.7 per cent to 24,249,265 TEU during the period, said the company, an increase of 20.1 per cent, compared to the 12.9 per cent average growth rate of Chinese ports.

In 2010, Cosco Pacific acquired 10 per cent additional equity interest in Yantian Terminal, increasing its equity throughput growth 31 per cent to 6,537,508 TEU.

During the period, company throughput in the Bohai Rim region accounted for 39.2 per cent of the total throughput reaching 9,522,797 TEU, outperforming the Yangtze River Delta and the Pearl River Delta. The increase, the company said, was mostly driven by Qingdao Qianwan Container Terminal and Tianjin Euroasia Terminal.

During the period, throughput of Qingdao Qianwan Container Terminal grew 25.8 per cent because of new routes with the Tianjin Euroasia Terminal starting operations in July 2010.

Company throughput in the Yangtze River Delta region accounted for 15 per cent of the total throughput, reaching 3,634,691 TEU.

In the Pearl, the Guangzhou South China Oceangate Terminal recorded a strong throughput growth of 22.5 per cent as a result of an increase in the calls at the terminal by Maersk Line, a major customer of the terminal, the company said.

Throughput of overseas terminals accounted for 12.9 per cent of the total, reaching 3,122,404 TEU up 17.1 per cent. Throughput of Antwerp Terminal increased 68.3 per cent because of another shipping line making calls.

Profit from container manufacturing increased 238.8 per cent to US$91.2 million.

Of the future, the group statement said in the first half of 2011, China's economic growth will continue its momentum with GDP growing 9.6 per cent year on year.

"During the period, Cosco Pacific's terminal business, container leasing, management and sale businesses and container manufacturing business continued to benefit from the steady growth of the global container shipping volume and recorded solid results," said the company.

Source : HKSG, 26.08.11.