Jan.26--Cosco Shipping Holdings, the Shanghai and Hong Kong-listed unit of China Cosco Shipping Corporation Limited (Cosco Shipping), is expecting to record a net loss for the financial year ended 31 December 2016.
The loss attributable to equity holders of the company for 2016 is expected at approximately RMB9.9bn ($1.4bn), reversing from the profit of RMB283.4m in 2015.
The container shipping terminal services unit of Cosco Shipping said that during the financial year, the international shipping market continued to lack solid improvement in addressing the imbalance in supply and demand.
“As a result of the weak market, during the reporting period, the growth of revenue generated from the container shipping business segment of the group was lower than the growth of the container shipping volume, and the increase in revenue was less than the increase in costs,” Cosco Shipping Holdings said.
Cosco Shipping Holdings also incurred losses from the disposal of assets as part of the parent firm’s structural reform, and book losses from the demolition of elderly vessels.
Source:seatrade-maritime.com