COSCO Shipping rebounds in 2020 2H

The company recorded a net profit increase during the year, despite the impact of the pandemic.

Port operator COSCO Shipping Ports Limited posted a $2.7b (US$347.5m) in 2020, 12.8% higher than the previous year even as its operations were disrupted by the pandemic.

Revenue during the year was reduced by 2.6% year-on-year to $7.7b (US$1b), while gross profit dropped 14.7% to $1,8b (US$232.6m). The share of profits from joint ventures and associates meanwhile increased 2% to $2.12b (US$272.7m).

“Although the epidemic has negatively affected our financial results in first half of 2020, the Company saw strong recovery momentum in the second half of the year,” the company said.

In the fourth quarter, the company sustained its recovery through stronger revenue and cost reduction. Revenue during the quarter climbed 9% to $2.16b (US277.9m), whilst gross profit increased 19.4% YoY to $489.8m (US$63m).

The company’s cost of sales only increased by 6.2%, against the revenue growth of 9%, which it said “showed the positive impact from our lean operations strategy.”

COSCO Shipping had declared a second interim dividend of HK 17.5 cents (US2.26 cents) per share, 11.2% higher than the 2019 final dividend per share.

Moreover, the company’s total throughput rose 3.5% to 32.7m TEU in the fourth quarter, driven by throughput growth of Pearl River Delta, Southwest Coast and Overseas regions. Total throughput in 2020 remained at 123.8m TEU, compared to 123.7 TEU in 2019.

Pearl River Delta’s total throughput increased by 1.6% in 2020 to 27.8m TEU, accounting for 22.5% of the Group’s total. The Bohai Rim region, Southwest Coast and Overseas regions all recorded an increase, respectively accounting for 33.8%, 4.3% and 23% of the total.

Meanwhile, total throughput in Greater China, Yangtze River Delta, and the Southeast Coast each decreased by 0.4%, 27% and 5.8%.