Hong Kong-listed terminal operator Cosco Pacific recorded a decline in interim net profits of 8.1%, falling from last year’s US$187.20m to US$171.95m.
Revenue for the period slipped 0.6% to US$275m as a slowing Chinese economy produced mixed results at individual terminals.
Overall, container throughput of the Group’s terminals grew 3.5% compared with the corresponding period of last year to 46,027,405 teu. Leading the growth was Piraeus Terminal in Greece, the newly acquired Kumport Terminal in Turkey and CJ Express Busan Container Terminal in South Korea, collectively adding an aggregate of 1,297,072 teu to the Group’s total throughput. However, throughput from the Greater China Region still accounts for 86.2% of the Group’s total throughput.
During the period under review the Group completed its acquisition of China Shipping Ports Development.
In March 2016, the Group disposed of Florens Container Holdings, which had constituted the Cosco Pacific’s container leasing activities. Cosco Pacific made a gain of approximately US$59.02m, which helped to support the bottom line.
Summing up the market and accounting for its lack lustre results, Cosco Pacific said: “The global economic recovery remained sluggish and China reported negative growth in its foreign trade during the first half of 2016, both of which constituted pressure on the Group’s container terminal business.”
Expectations for the second half of the year are for continued mild growth.