Asset sale boosts Cosco Pacific profit
Port operator eyes overseas targets after net jumps 105 per cent on selling stake in CIMC
Cosco Pacific said its net profit shot up 105 per cent to US$702.7 million last year and the company is considering making more port acquisitions abroad at a time when the mainland's container throughput growth is slowing.
The jump in net profit was mainly due to net disposal gains of US$393.4 million from selling its stake in China International Marine Containers in June last year.
"We are positive about the container throughput on the mainland and think that the growth would be steady this year," said Wang Xingru, a vice-chairman of the company, yesterday.
The earnings are in line with market expectations, with profit from the company's container leasing section a bit disappointing as it dropped 10.2 per cent from 2012 to US$125.2 million because of soft demand and a decline in container pricing, analysts said.
Revenue from port operations, which accounted for 57 per cent of total sales, grew 13 per cent to US$455 million. Profit, however, slipped 1.2 per cent to US$186.8 million because of higher costs on tax and interest and a 27 per cent fall in net profit at its Hong Kong port operation.
Last year, mainland ports nationwide handled 6.7 per cent more containers at 189 million teu, compared with 8.1 per cent growth in 2012, a 12 per cent rise in 2011 and the 19.4 per cent increase in 2010.
The growth at mainland ports, which accounts for 30 per cent of global throughput, was ahead of the 3.3 per cent rise in the global average.
