COSCO Shipping Energy Transportation Warns of Over 50 Pct Profit Fall

COSCO Hong Kong-listed COSCO Shipping Energy Transportation forecasts a drop in profit for the first six months of this year of up to 57 percent year-on-year. Specifically, the groups net profit attributable to the equity holders is expected to range between RMB 800-900 million (equivalent to approximately USD 118.3-133.1 million), a decline of approximately 51% to 57% as compared to last years equivalent of RMB 1.85 billion. COSCO Shipping Energy Transportation disposed of its dry bulk cargo business at the end of June 2016. The revenue from the disposal of the dry bulk cargo business less the operating loss from the dry bulk cargo business constituted a net profit from discontinued operations worth RMB 743 million, the company said. However, the net profit from the continued operation of the groups oil and gas transportation business fell by approximately 19%-28% on a year-on-year basis, mainly due to a decrease of approximately 40%-60% in the daily revenue level on the market of different types of vessels for foreign oil transportation in the first half of the year.