CHINA Shipping Container Liner (CSCL) posted a CNY432 million (US$70.5 million) first half profit, erasing a year on year loss of CNY1.3 billion while half year revenues stood at CNY17.4 billion, up 8.5 per cent.
This was accomplished by the world's seventh-largest carrier by selling assets to avoid delisting in under Shanghai Stock Exchange rules as rival Cosco was forced to do before.
CSCL sold part of its container fleet in a US$135 million leaseback deal as well as selling its majority stake Lianyungang port to Singapore's PSA for $120 million then offloading terminal assets to a Hong Kong affiliate for a $142 million
CSCL also sourced in $450 million capital advances from China Shipping Holdings, a Hong Kong subsidiary, and ANZ, reported Lloyd's List.
CSCL did see a rise in liftings of 1.4 per cent to 3.95 million TEU but results were negligible profit due to the falling freight rates.
Also listed in Hong Kong, and 52.5 per cent owned by the public, CSCL places seventh in carrier capacity rankings at 649,335 TEU, according to Lloyd's List Intelligence, and a big gap exists between itself and sixth-placed Hapag-Lloyd and fifth placed Cosco.
Email | Print