Cosco Profits Jump 39 Percent in First Half

Profits increased 39 percent for Hong Kong-based Cosco, Asia's largest shipping company, during the first half of 2010. The company's profit as of June 30 was HK$342 million compared with HK$246 at the end of the same period in 2009.

Revenues rose sharply from HK$698 million for the first half of 2009 to HK$4,121 million in 2010, an increase of 490 percent.

During the period Cosco Ship Trading completed transactions for the sale and purchase of 28 vessels, including new build and second-hand, compared with 29 vessels in the first half of 2009. While the total was down one unit, the aggregate dead weight tonnages were sharply up this year, from 757,000 dwt in 2009 to 1,333,000 dwt in 2010.

The majority of the revenue increase was attributed to Cosco’s newly added marine fuel trading unit and "remarkable growth" in container coatings sales volume.

During the first half of the year, Cosco expanded its overseas marine supply business by establishing Shin Chung Lin Corporation in Japan and acquiring Singapore-based Xing Yuan Pte Ltd.

Company officials said that they were surprised by the momentum of global economic recovery. The sale volumes of all units of its core shipping business either remained stable or increased, according to the company report.

Cosco owns and operates a fleet of 550 vessels with a total carrying capacity of up to 30 million deadweight tons, including 20 general cargo ships, more than 60 multipurpose and heavy-lift ships, six ro-ro vessels and two semi-submersibles.  

Accompanying photo of the multi-purpose vessel Feng Huang Song courtesy of Cosco