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.
Cosco Pacific's mainland ports throughput rose 10 per cent year on year, compared with 10.4 per cent growth at its overseas ports.
"Overseas ports are increasingly important and we are in discussion with several overseas port owners now," said deputy managing director Qiu Jinguang.
These projects are in Africa, Southeast Asia and South America.
The company got a pay-off from its acquisition of Greece's Piraeus terminal, which was devastated by a strike and a debt crisis which wracked the country in 2011.
Profit at the port grew 16 per cent to US$23 million, driven by a 20 per cent jump in container throughput. The port handled 2.5 million teu last year.
Profit at the company's southern China port at Nansha increased 34 per cent to US$8.3 million, which came in stark contrast to its operations in Hong Kong and Shenzhen.
Hong Kong Terminal 8 West saw a 26.9 per cent decrease in net profit to US$16.2 million while Yantian International Container Terminals profit climbed 2.4 per cent.
Cosco Pacific shares fell 2.35 per cent to close at HK$9.96.
