Welcome!

News Feed Item

COSCO International Announces 2014 Interim Results

Strong Profit Growth with Net Profit Up 45% YOY

HONG KONG, Aug. 19, 2014 /PRNewswire/ --

Financial Summary

For the six months ended/as at 30th June

2014

(HK$ mn)

2013

(HK$ mn)

Changes

(%)

Revenue

4,740

4,461

+6%

Gross profit

424

328

+29%

Operating profit

151

129

+17%

Profit attributable to equity holders

190

131

+45%

Basic earnings per share (HK cents)

12.57

8.65

+45%

Interim dividend per share (HK cents)

3.00

2.00

+50%

Results Highlights

  • Strong profit growth: profit attributable to the equity holders surged by 45% to HK$190 million. The growth was mainly driven by:
    • Marked increase of 103% YOY in ship trading agency's commission income with significant jump in volume of both scrapped ships and newbuild contracts, resulted from Chinese shipowners- accelerated fleet restructuring activity;
    • 68% YOY increase in finance income generated from the Group's cash on hand with higher bank deposit interest rates; and
    • Rebound of 374% YOY in profit contribution from the Group's joint venture, Jotun COSCO.
  • Dividend: the Board has declared an interim dividend of 3 HK cents per share, increased by 50% YOY.
  • Strong cash position: the Group had net cash of HK$6 billion as at 30th June 2014, which will support business expansion in the future.

Business Development Highlights

  • In August 2014, COSCO International's wholly owned subsidiary COSCO Yuantong completed acquisition of 51% equity interest in Yuan Hua in the USA from COSCO Americas. The acquisition, marked the initial establishment of COSCO International's global supply network of marine spare parts, will further enhance the Group's capability in procuring and supplying of marine equipment and spare parts in the Americas.
  • Jotun COSCO and COSCO Kansai continued to retain the No. 1 market share in Chinese marine coatings and container coatings markets in 1H2014. To strengthen their market leadership, the two joint ventures propelled the construction of their new plants this year. Jotun COSCO has substantially completed the construction of its new plant in Qingdao, currently in trial production, which can produce marine coatings of 67,500 tonnes annually. COSCO Kansai started construction of its new plant in Shanghai in March 2014, which is scheduled to commence production in 2015, with a maximum annual production capacity of 75,000 tonnes.
  • COSCO International is closely studying the expansion of new business in shipping services related areas.

Business Review

  • In 1H2014, as Chinese shipowners accelerated their fleet restructuring, the operating environment for shipping services businesses was improved. As a result, the Group's profit before income tax (PBT) from shipping services grew by 47% YOY to HK$221 million.
  • PBT from the three traditional shipping services for shipowners (i.e. ship trading agency, marine insurance brokerage and supply of marine equipment & spare parts) increased by 67% YOY to HK$127 million, contributed 51% of the Group's total PBT.
  • The coatings segment's PBT rebounded by 34% YOY to HK$82 million, accounted for 33% of the Group's PBT, mainly driven by the significant increase in profit contribution from the marine coatings producer Jotun COSCO on better gross profit margin and a one-off exchange gain upon liquidation of its subsidiary in Guangzhou.
  • PBT from marine fuel supply segment was HK$11 million, down by 14% YOY, accounted for 4% of the total PBT. The decrease was mainly caused by the declined share of profit from Double Rich, the 18% owned associate in Hong Kong.

Outlook

Mr. Sun Jiakang, Chairman of the Board of COSCO International, commented, "With the advantages of strong cash position, experienced professionals and a global service network, COSCO International will be seeing more development opportunities in existing and new business areas. As for existing business, COSCO International will ensure the steady growth of shipping services business segments, and, at the same time, deepen corporate transformation and upgrade so as to strengthen and improve the profitability of core business. As for expansion into new business, COSCO International will seize opportunities to further improve the construction of a global sales and service network, actively study on the new business development in shipping services related areas, as well as the upstream and downstream alongh the value chain of existing businesses. With the full support from COSCO Group, the Company will make every effort to achieve a leap in the business development as soon as possible, and create great returns for shareholders."

Editorial Note

The announcement of 2014 interim results is available on the website of the SEHK (www.hkexnews.hk) and the Company's website (www.coscointl.com). A webcast replay of the 2014 interim results analyst meeting will be available at the Company's website after 10:00pm, 19th August 2014.

Company Background

COSCO International Holdings Limited ("COSCO International") is listed on the main board of The Stock Exchange of Hong Kong Limited. Its stock code is 00517. COSCO International is a constituent of Hang Seng Corporate Sustainability Benchmark Index. In recent years, COSCO International has focused its strategic business position on the development of the shipping services business. It aims to become a global leading one'stop shipping services provider, offering professional services to shipowners worldwide. Its core businesses include ship trading agency, marine insurance brokerage, supply of marine equipment and spare parts, production and sale of coatings and trading and supply of marine fuel and related products. The headquarters of COSCO International is in Hong Kong and its businesses network cover China Mainland & Hong Kong, Singapore, Japan, Germany and the USA, etc. COSCO International is a listed company owned by COSCO (Hong Kong) Group Limited, which is a wholly-owned subsidiary of China Ocean Shipping (Group) Company ("COSCO"). COSCO Group is one of the major multinational conglomerates in the world, which focuses mainly on shipping, logistics, and ship building and repairing businesses as well as other shipping related businesses.

For enquiries, please contact:

Investor Relations Department of COSCO International

Yang Ling, General Manager

Tel: (852) 2809 7810

Fax: (852) 8169 0678

Email: [email protected]

Candy Cheung, Deputy General Manager

Tel: (852) 2809 7706

Fax: (852) 8169 0678

Email: [email protected]

Crystal Lu, Senior Officer

Tel: (852) 2809 7820

Fax: (852) 8169 0678

Email: [email protected]




PR China Limited

Henry Chik / Vivian Cheung / Ivy Lu

Tel: (852) 2522 1838 / 2522 1368 / 2521 2823
Fax: (852) 2521 9955

Email: [email protected] / [email protected] / [email protected]

SOURCE COSCO International

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
Redis is not only the fastest database, but it is the most popular among the new wave of databases running in containers. Redis speeds up just about every data interaction between your users or operational systems. In his session at 19th Cloud Expo, Dave Nielsen, Developer Advocate, Redis Labs, will share the functions and data structures used to solve everyday use cases that are driving Redis' popularity.
I wanted to gather all of my Internet of Things (IOT) blogs into a single blog (that I could later use with my University of San Francisco (USF) Big Data “MBA” course). However as I started to pull these blogs together, I realized that my IOT discussion lacked a vision; it lacked an end point towards which an organization could drive their IOT envisioning, proof of value, app dev, data engineering and data science efforts. And I think that the IOT end point is really quite simple…
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 19th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world and ThingsExpo Silicon Valley Call for Papers is now open.
You think you know what’s in your data. But do you? Most organizations are now aware of the business intelligence represented by their data. Data science stands to take this to a level you never thought of – literally. The techniques of data science, when used with the capabilities of Big Data technologies, can make connections you had not yet imagined, helping you discover new insights and ask new questions of your data. In his session at @ThingsExpo, Sarbjit Sarkaria, data science team lead ...
To leverage Continuous Delivery, enterprises must consider impacts that span functional silos, as well as applications that touch older, slower moving components. Managing the many dependencies can cause slowdowns. See how to achieve continuous delivery in the enterprise.
WebRTC is bringing significant change to the communications landscape that will bridge the worlds of web and telephony, making the Internet the new standard for communications. Cloud9 took the road less traveled and used WebRTC to create a downloadable enterprise-grade communications platform that is changing the communication dynamic in the financial sector. In his session at @ThingsExpo, Leo Papadopoulos, CTO of Cloud9, discussed the importance of WebRTC and how it enables companies to focus...
"My role is working with customers, helping them go through this digital transformation. I spend a lot of time talking to banks, big industries, manufacturers working through how they are integrating and transforming their IT platforms and moving them forward," explained William Morrish, General Manager Product Sales at Interoute, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Up until last year, enterprises that were looking into cloud services usually undertook a long-term pilot with one of the large cloud providers, running test and dev workloads in the cloud. With cloud’s transition to mainstream adoption in 2015, and with enterprises migrating more and more workloads into the cloud and in between public and private environments, the single-provider approach must be revisited. In his session at 18th Cloud Expo, Yoav Mor, multi-cloud solution evangelist at Cloudy...
Aspose.Total for .NET is the most complete package of all file format APIs for .NET as offered by Aspose. It empowers developers to create, edit, render, print and convert between a wide range of popular document formats within any .NET, C#, ASP.NET and VB.NET applications. Aspose compiles all .NET APIs on a daily basis to ensure that it contains the most up to date versions of each of Aspose .NET APIs. If a new .NET API or a new version of existing APIs is released during the subscription peri...
Security, data privacy, reliability, and regulatory compliance are critical factors when evaluating whether to move business applications from in-house, client-hosted environments to a cloud platform. Quality assurance plays a vital role in ensuring that the appropriate level of risk assessment, verification, and validation takes place to ensure business continuity during the migration to a new cloud platform.
SYS-CON Events announced today that 910Telecom will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Housed in the classic Denver Gas & Electric Building, 910 15th St., 910Telecom is a carrier-neutral telecom hotel located in the heart of Denver. Adjacent to CenturyLink, AT&T, and Denver Main, 910Telecom offers connectivity to all major carriers, Internet service providers, Internet backbones and ...
Ovum, a leading technology analyst firm, has published an in-depth report, Ovum Decision Matrix: Selecting a DevOps Release Management Solution, 2016–17. The report focuses on the automation aspects of DevOps, Release Management and compares solutions from the leading vendors.
Continuous testing helps bridge the gap between developing quickly and maintaining high quality products. But to implement continuous testing, CTOs must take a strategic approach to building a testing infrastructure and toolset that empowers their team to move fast. Download our guide to laying the groundwork for a scalable continuous testing strategy.
Adding public cloud resources to an existing application can be a daunting process. The tools that you currently use to manage the software and hardware outside the cloud aren’t always the best tools to efficiently grow into the cloud. All of the major configuration management tools have cloud orchestration plugins that can be leveraged, but there are also cloud-native tools that can dramatically improve the efficiency of managing your application lifecycle. In his session at 18th Cloud Expo, ...
SYS-CON Events announced today that LeaseWeb USA, a cloud Infrastructure-as-a-Service (IaaS) provider, will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. LeaseWeb is one of the world's largest hosting brands. The company helps customers define, develop and deploy IT infrastructure tailored to their exact business needs, by combining various kinds cloud solutions.