Ports operator COSCO SHIPPING Ports Limited (“COSCO SHIPPING Ports” or “CSP” or the “Company”, today announced the interim results of the Company and its subsidiaries (the “Group”) for the six months ended 30 June 2020.
2020 Interim Results Highlight
- Revenue was US$452.7 million -12.6% year-on-year
- Gross profit was US$ 99.2 million, -35.4%year-on-year
- Share of profits from JV and associates was US$ 128.7 million, -11.0% year-on-year
- Net Profit was 163.4 million, +10.5% year-on-year
- Earnings per share was US 5.17 cents, +8.8% year-on-year
- Declared an interim dividend of US$ 2.068 cents per share, +8.8% year-on-year
OPERATIONAL REVIEW
- Total throughput was 57,634,191 TEU, -3.6% year-on-year
- Total equity throughput was 18,077,469 TEU, -6.6% year-on-year
- Total throughput from subsidiaries was 10,501,481 TEU, -15.6% year-on-year
Greater China
For the 6 months ended 30 June 2020, total throughput of the Greater China region decreased by 4.3% to 44,037,541 TEU (1H2019: 46,015,330 TEU) and accounted for 77.0% of the Group’s total.
Bohai Rim
During the period, total throughput of the Bohai Rim region increased by 4.9% to 20,236,784 TEU (1H2019: 19,298,356 TEU) and accounted for 35.1% of the Group’s total. In particular, throughput of QPI increased by 0.4% to 10,340,000 TEU (1H2019: 10,300,000 TEU).
Yangtze River Delta
Total throughput of the Yangtze River Delta region decreased by 31.6% Year-on-year to 6,836,156 TEU (1H2019: 9,989,132 TEU) and made up 11.9% of the Group’s total. The drop in throughput was mainly due to completion of the disposal of Nanjing Longtan Terminal, Yangzhou Yuanyang Terminal and Zhangjiagang Terminal by the Group (throughput of Nanjing Longtan Terminal has been excluded since January 2020; throughput from Yangzhou Yuanyang Terminal and Zhangjiagang Terminal has been excluded since February 2020). Benefitting from adjustment in shipping routes and synergy effect, throughput of Nantong Tonghai Terminal increased by 38.0% Year-on-year to 659,634 TEU (1H2019: 477,954 TEU).
Southeast Coast and Others
Total throughput of the Southeast Coast region decreased by 12.3% Year-on-year to 2,535,043 TEU (1H2019: 2,890,372 TEU) and accounted for 4.4% of the Group’s total. Impacted by COVID19 epidemic in the overseas region, total throughput of Xiamen Ocean Gate Container Terminal Co., Ltd. which mainly focuses on foreign trade decreased by 13.8% Year-on-year to 898,266 TEU (1H2019: 1,041,699 TEU). Total throughput of Quan Zhou Pacific Terminal decreased by 22.3% to 592,026 TEU (1H2019: 761,580 TEU), which was mainly due to adjustment in the network of shipping lines.
Pearl River Delta
Total throughput of the Pearl River Delta region decreased by 7.3% to 12,149,056 TEU (1H2019: 13,112,675 TEU) and accounted for 21.1% of the Group’s total. Guangzhou South China Oceangate Terminal effectively responded to the impact of COVID-19 Epidemic, the throughput slightly decreased by 4.7% to 2,706,410 TEU (1H2019: 2,840,338 TEU)
Southwest Coast
Total throughput of the Southwest Coast region surged by 214.6% Year-on-year to 2,280,501 TEU (1H2019: 724,795 TEU) and accounted for 3.9% of the Group’s total, which was mainly because throughput from Beibu Gulf Port was included since January 2020 and the throughput from January to June amounted to 1,538,386 TEU.
Overseas
Total throughput of overseas region decreased by 1.1% Year-on-year to 13,596,650 TEU (1H2019: 13,748,770 TEU) and accounted for 23.6% of the Group’s total. Impacted by decrease in global economic demand due to the epidemic and liner companies reduced capacity, throughput of Piraeus Terminal decreased by 6.2% Year-on-year to 2,409,403 TEU (1H2019: 2,569,936 TEU). Throughput of CSP Zeebrugge Terminal surged by 58.4% Year-on-year to 292,531 TEU (1H2019: 184,724 TEU), which was mainly driven by improvement in shipping routes and increasing volume from ad-hoc shipping calls in January and February. Throughput of CSP Abu Dhabi Terminal recorded 340,727 TEU (April to June 2019: 68,746 TEU).
Outlook
So far, COVID-19 Epidemic has not been contained globally and global economy and trade activities have not yet recovered. Although uncertainties lie ahead, China’s imports and exports statistics have shown signs of strong recovery. COSCO SHIPPING Ports continues to actively implement a series of measures, such as lean operations, control cost and improve efficiency.
As at the end of June, the Group has cash and bank deposits of approximately US$1.118 billion. It is expected that there will be sufficient cash to support the dividend policy of the Company in the year 2020.
COSCO SHIPPING Ports continues to refine and optimise information system and enhance the application of Navis N4 system to realise standardised terminal operation and management mode to improve the Group’s management efficiency, as well as reduce the overall management cost of the terminals. It is expected that CSP Spain Group and Quan Zhou Pacific Terminal strive to launch Navis N4 system this year.
COSCO SHIPPING Ports is well prepared to embrace the rising demand. The Group will keep a close eye on the declining valuation of global terminal resources and opportunities of acquisition to actively look for project with high potential in Southeast Asia, Middle East, Africa and etc. The Group aims to build hub ports, gateway ports and strategic terminals with controlling stakes to improve the Company’s profit and enhance synergy. Leveraging on the synergy from the parent company and the OCEAN Alliance and benefiting from the ship calls from other shipping alliances, the Group is well positioned to improve throughput when demand recovers.
For more information:
Ricky NG
Investor Relations Department
COSCO SHIPPING
Tel: 2809-8131
Fax: 2907-6088
Email: ricky.ng@coscoshipping.com
Moriz YUTSOI
Investor Relations Department
COSCO SHIPPING
Tel: 2809-8020
Fax:2907-6088
Email: moriz.yutsoi@coscoshipping.com