COSCO SHIPPING Holdings Announces 2019 Q3 Results

COSCO SHIPPING Holdings Co., Ltd.("COSCO SHIPPINGHoldings" or "the Company") (SSE: 601919; HKEx: 1919) today announced itsfinancialresults for the first third quarters of 2019.

 

In the first three quarters of 2019, due to the slowdown of global economic growth and the escalation of trade friction, the growth in demand for container shipping was slowing down.However, during the period, pressure on the supply of shipping capacity in the industry eased during the reporting period with newly delivered shipping capacity decreased and scrapped capacity increased as compared to the same period of last year.In the first three quarters, the average China Containerized Freight Index (CCFI) was 826 points, increased by 2.0% as compared to that of the same period of last year.In the third quarter, the average CCFI was 822 points, representing a decrease of 1.7% year-on-year and an increase of 2.2% quarter-on-quarter. 

 

During the reporting period, COSCO SHIPPING Holdings focused on improving the quality of shipping services, swiftly responded to the changes of market environment, flexibly adjusted the global capacitynetwork, fully leveraged the advantages of scale and synergies after the acquisition of OOIL, and have achieved relatively good results.In the first three quarters, the Company had achieved revenue of RMB 111.6 billion, representing an increase of 35.9 %, and recorded net profit attributable to equity holders of the Company of RMB 2.1 billion, representing a significant increase of 145.3 % year-on-year. 

 

The Company’s container shipping segment had achieved revenue of RMB 106.8 billion, representing an increase of 37.4% year-on-year. EBIT of container shipping business reached RMB 5.2 billion (approximately USD 760million), and EBIT Margin increased to 4.9 % from 3.4% in the same period of last year. The Company’s container shipping segment recorded net profit of RMB 2.2 billion, representing a significant increase of 90.7% year-on-year. The revenue ofthe Company’s terminal operation segment reached RMB 6.7 billion, representing an increase of 29.7% year-on-year, and the profit margin remained stable. 

 

During the reporting period, in respect of container shipping business, the Company recorded total shipping volume of 19.1 millionTEUs, representing an increase of 23.8% year-on-year. Among which, COSCO SHIPPING Lines recorded shipping volume of 13.9 millionTEUs, representing an increase of 1.7% as compared to the same period of last year, and OOCL recorded shipping volume of 5.2 million TEUs (representing an increase of 3.5% as compared to the same period of last year on a comparable basis). COSCO SHIPPING Ports recorded total throughput of 92million TEUs, representing an increase of 5.3% as compared to the same period of last year.

 

During the reporting period, the Company actively optimized the global routes network and upgraded the Ocean Alliance route products. The Company also enhanced its shipping capacity and service input in the markets such as Europe, Southeast Asia, Middle East, West Asia, Latin America and South Africa, and stepping up its effort in the construction of feeder service network in intra-regional markets. Taking an active part in the "Belt and Road" development, the Company expanded its services further to emerging markets and regional markets. The cargo volume in non-China routes maintained steady growth and the distribution of shipping capacity was more globalized and balanced. As of the end of the reporting period, the fleet capacity of COSCO SHIPPING Holdings reached 502 vessels/2,975,968 TEUs, ranking the third in the world.

 

During the reporting period, the operation of the Company’s container shipping segment was steadily improved. In the first three quarters, the unit income (revenue per TEU in US dollars) of international routes of COSCO SHIPPING Lines and OOCL had a year-on-year increase of 3.2% and 2.7% respectively, both higher than the growth rate of 2.0% of average CCFI in the same period. In the third quarter, the average CCFI declined by 1.7% compared to the same period of last year, while the unit income of internationalroutes of COSCO SHIPPING Lines and OOCL had a year-on-year increase of 2.1% and 1.6% respectively, both realizing growth against the market trend.

 

Looking ahead, COSCO SHIPPING Holdings will continue to follow its strategies, further accelerate globalization and implement the “dual brand” strategy to improve the quality of shipping services. In the meantime, the Company will advance the customer-centered application of new technologies such as blockchain and artificial intelligence, speed up the building of digitalization in shipping and strengthen end-to-end services so as to enhance customer experience and operational efficiency. In addition, the Company will actively support and respond to the International Convention’s initiative on environmental protection, fully fulfill its social responsibility and undertake preparatory work before IMO2020 coming into effect to ensure compliance once it is officially effective, thus promoting the sound and sustainable development of core business.

 

About COSCO SHIPING Holdings Co., Ltd.

 

COSCO SHIPPING Holdings Co., Ltd. ("COSCO SHIPPING Holdings", Stock Code: 1919.HK; 601919.SS) is the listed company controlled by China COSCO SHIPPING Corporation Limited. The Company was listed on the Hong Kong Stock Exchange in June 2005 and the Shanghai Stock Exchange in June 2007. 

 

The Company focuses on container shipping and terminal operations. Through its wholly-owned subsidiary, COSCO SHIPPING Lines and its holding subsidiary OOCL, the Company operates a total fleet capacity of 502 ships and 2.98 million TEUs, ranking as the world’s third largest container shipping company. COSCO SHIPPING Ports, another controlled subsidiary of the Company, operates a total of 206 container berths in 37 ports around the world, with an annual design processing capacity of 114 million TEU. COSCO SHIPPING Holdings is committed to become a top tier container shipping and port service provider with its continuing efforts to build up a global network, improve operational quality, provide customers with value and create return for shareholders.

 

Source:COSCO SHIPING Holdings

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