Cosco Pacific, a mainland port operator and container leasing company, reported worst than expected half-year results yesterday with operating profits falling 42 per cent, although net income rose 9 per cent due to exceptional gains and lower taxes.
Net profit rose 8.9 per cent to US$148.52 million, partially reflecting a 95 per cent dive in income taxes.
The company also received a US$10.6 million one-time contribution from the revaluation of certain put options that were granted as the mainland government relinquished partial control of a related company.
Earnings per share increased 7.4 per cent to 6.64 US cents. directors recommended an interim dividend of 24.9 HK cents per share, compared with 27.9 HK cents for the same period last year.
Operating profits dropped to US$75.44 million from US$130 million as results from Cosco's container leasing division fell 53 per cent year on year.
Florens Container Holdings, the company's container leasing arm, operates a fleet of about 1.4 million 20-foot equivalent units (teu). The world's third-largest container leasing company posted a 22 per cent slide in sales, despite a 26 per cent increase in fleet size.