CSCL unsure but confident, first half profit up 134pc to US$172 million

THE China Shipping Container Lines (CSCL) has declared a 134.3 per cent increase in first half net profit to CNY1.17 billion (US$172.03 million), reversing a CNY3.41 billion net loss in the corresponding period last year.

Profit attributable to shareholders was drawn on a 79.5 per cent increase in revenue to CNY16.02 billion against last year's first half sales of CNY8.9 billion, according to a statement issued to Hong Kong stock exchange.

While Hong Kong-listed, CSCL is a joint stock company under the Company Law of the Peoples Republic of China and registered in Shanghai's Yangshan Free Trade Port, Pudong New Area.

Of the first half, and of its outlook for the second, CSCL said: "As the freight rates of trade lanes remained at a relatively high level since the beginning of the year, the shipping industry was not yet under full operating difficulties. However, the European debt crisis, the slow recovery of the US economy, the declining PRC GDP and other negative factors have brought the industry uncertainties in the fourth quarter.

"Facing such a complicated business outlook, the group remains confident. The recovery of major economies around the globe had led to a general increase in consumption, which stimulated transportation directly. Cargo volume of the group grew 11.6 per cent over that of the same period last year, thus idle shipping capacity was fully utilised," said the company.

"Encouraged by the above positive factors, freight rates of all trade lanes were restored to their prior level. The revenue per TEU from Europe-Mediterranean trade lanes increased 183.8 per cent as compared with the same period last year. Revenue per TEU from the Pacific trade lanes and Asia Pacific trade lanes saw a significant rebound and the revenue per TEU from domestic trade lanes also recorded an increase over that of the same period last year," said the statement.

First half costs totalled to CNY14.4 billion, an increase of CNY2.3 billion or 19.3 per cent year on year. The increase was attributed to container and cargo costs amounting to CNY5.4 billion, an 18 per cent increase mainly because of the increase in laden containers.

Port charges also went up 8.8 per cent, the result of the increase in the number of voyages. With the increase in the volume of loaded containers, stevedoring charges for laden and empty boxes came to CNY3.3 billion, an increase of 22.7 per cent.

Due to the rapid increase in container prices, container management costs mounted to CNY1.2 billion, up 13.8 per cent. Vessel and voyage costs came to CNY6.01 billion, an increase of 25 per cent because of rising fuel costs. Fuel itself cost CNY3.7 billion, up 49.6 per cent on the year before.
(Source:www.schednet.com)