POST Online Media Lite Edition


COSCO announced loss and selling of property assets

Staff writer |
China's largest bulk shipper COSCO may sell some of its $1.6-billion property assets to avoid a delisting after it acnnounced a first-half loss caused by a fall in the global shipping industry.

China COSCO Holdings company said that the company together with its subsidiaries is expected to record a loss for the six months ended June 30, 2013.

COSCO expects that such loss will be reduced by approximately 70% to 85% compared to the same period last year. For the reference of the shareholders of the company and potential investors, the loss attributable to the equity holders of the company for the six months ended June 30, 2012 was RMB4,871,535,238.54, with basic earnings per share of RMB-0.4768.

The Board believes that the loss is primarily due to the imbalance between supply and demand in the international shipping market. The container and dry bulk shipping markets remained weak. Freight rates had also dropped compared to the same period last year and remained at low level.

By selling the equity interests in COSCO Logistics Co., Ltd. and COSCO Container Industries Limited as well as reducing the size of dry bulk vessel charters and expenses, the company has reduced the net loss significantly compared to the same period last year.

What to read next

Cosco offers $400 million for Greece's largest port
China approves shipping giants' restructuring
COSCO acquires 40% stake in Italy's Vado