China’s Cosco Shipping Ports posts 70 per cent jump in adjusted profit in first half, but braces for trade war impact
Trade war has had ‘mild’ impact so far on container terminal operator, but it is weighing possible plays in Southeast Asia and South Asia should fallout intensify.
Cosco Shipping Ports (CSP), one of the world’s largest container terminal operators, said the impact of the US-China trade war has so far been “mild” on the company, as it posted a 70 per cent jump in adjusted profit for the first six months of the year.
But the company said it expects the impact could be greater if the trade war continues, potentially causing shipments to move from China to Southeast Asia and South Asia.
Adjusted net profit for the company reached US$169 million in the first half of the year, beating market forecasts, up from last year’s US$99.3 million if excluding one-off items from the Qingdao Port International transaction. Revenues increased 80 per cent year on year to US$495.5 million for the company, which is owned by China’s Cosco Group.
Total throughput – the amount of containers handled – rose 27 per cent over the six months to 56.7 million teus (twenty-foot equivalent units).
“The trade war impact is relatively mild [on our business] so far, as we have limited exposure to US trade,” Zhang Wei, vice-chairman and managing director for the Hong Kong-based port operator, said at a press conference on Monday.