Cosco Pacific profit up 2.1pc to US$286.2 million as sales rise 8.6pc
COSCO Pacific, the terminal and container-leasing unit of China Ocean Shipping Group, has posted a 2.1 per cent year-on-year net profit increase in 2013 to US$286.2 million, drawn on revenues of $798.6 million, up 8.6 per cent.
Revenues from terminals rose 13.2 per cent to $455 million, largely attributable to Piraeus Container Terminal near Athens as well as the Guangzhou and Xiamen terminals.
Revenue from the container leasing, management and sale businesses rose 3.4 cent to $347.7 million, mainly due to an increase in the number of containers on hire.
Profit from the container leasing, management and sale businesses dropped 10.2 per cent to $125.2 million. The container fleet size increased 1.8 per cent to 1,888,200 TEU with an overall average utilisation rate of 94.5 per cent, down from 95.3 per cent in 2012.
Overseas terminals performed well during the year, said the company statement.
"Despite Piraeus Terminal in Greece being impacted by an increase in corporate taxation, the terminal recorded a 16 per cent growth in profit to $23 million thanks to a 19.5 per cent increase in throughput attributable to business development.
"The profit from Suez Canal Container Terminal in Egypt rose 15.9 per cent to $10.2 million in Egypt rose 15.9 per cent to $10.2 million," said the statement.
"The profit from Ningbo terminal rose 26.7 per cent to $9.9 million and profit from Guangzhou terminal rose 34 per cent to $8.2 million, while that from Yantian increased 2.4 per cent to US$54.9 million.
In addition, the acquisition of 39.04 per cent of the Taicang International Container Terminal was completed on July 22, 2013, which generated $1.4 in profit attributable to the group during the year.
Cosco Pacific recently acquired a 40 per cent stake in Hong Kong's Asia Container Terminals (ACT) for $212.3 million from Hutchison Port Holdings, along with a 20 per cent stake purchase by China Shipping Terminal Development, a sister company of China Shipping Container Lines.
"Some say we overpaid for the ACT stake," Cosco Pacific managing director Wang Xingru told Lloyd's List. "But China Shipping has committed to bringing in calls to ACT, which will result in considerable volumes at ACT."