September 08, 2008

China Shipping 2007 net profit up by 65.8% YoY

It is reported that China Shipping Development Co Ltd 2007 net profit under Chinese accounting standards up by 65.85% to CNY 4.6 as capacity expanded and shipping volumes rose, offsetting the impact of high fuel prices.

China Shipping Development Co Ltd said all 42 bulk carriers bought from its parent company in 2006 put in a full year of operations in 2007 increasing the company's shipping capacity by 1.4 million DWT. It said its shipping volume was 119.2 billion tonne miles in 2007 up by 50.3 % generating revenue of CNY 7.639 billion up by 93.8%.

Its oil shipping volume was 97.2 billion tonne miles up by 6.2% although revenue generated from the segment fell 8% to CNY 5 billion. Coal shipping volume turnover was up 66.7% at 81.3 billion tonne miles, generating revenue of CNY 5.474 billion up by 89.3%. Operating revenue was CNY 12.69 billion in 2007 up by 34.38% while operating costs rose 23.6% to CNY 7.99 billion mainly due to higher fuel prices.

In 2007, the company disposed of 22 bulk carriers with a combined capacity of 408,000 DWT. It plans to dispose of another 13 carriers with a combined capacity of 210,000 DWT in 2008.