COSCO SHIPPING Specialized: Net Profit Increased by 24.31% Year on Year with a Steady Rise in the Profit of Main Business
On March 30, COSCO SHIPPING Specialized Carriers Co., Ltd. (COSCO SHIPPING Specialized) released its 2020 annual results, which shows a year-on-year increase in the operating profit. With such strong resilience and huge development capacity, the company achieved a net profit of 125 million yuan, an increase of 24.31% year on year; the profit of its main business (shipping) increased steadily from a year earlier; the operating cash flow was also maintained at a sound level.
In 2020, the global maritime trade volume dropped by 3.6% due to the impact of COVID-19 and the plunge of crude oil prices. COSCO SHIPPING Specialized clearly defined its strategic goals for the 14th Five-Year Plan, focusing on the development of “specialized” services and giving play to its own advantages to respond to market changes. The company accelerated the expansion of its services worldwide, continuously built up its global coverage, and initially established three major overseas operation platforms in Europe, South America and Southeast Asia; it established pulp logistics and project logistics teams to promote the expansion of its industrial chain operations; it also developed its fleet and realized “asset lite” through various methods such as buying, building, leasing, recycling and selling, and by means of ship owning, finance lease and operating lease; the company continuously optimized its cargo structure, as the proportion of machinery equipment to the total cargo volume rose by 4.38% year on year, and the volume of pulp products also maintained rapid growth for years, rising from less than 100,000 tons in 2016 to 2.61 million tons in 2020, and becoming the second largest cargo type of the company.
In 2021, the global economy started to rebound, and several market segments of specialized carrier shipping are expected to resume positive growth. In the first quarter of this year, the international dry bulk shipping market grew beyond expectation, with an average value of the BDI index for the year nearly three times that of the same period last year, boosting the gradual recovery of the related market segments. In the medium and long term, the market opportunities for specialized carrier shipping will largely arise from the RCEP, growth of wind power industry, increase of infrastructure investment in various countries in the post-pandemic era, rebound of China’s contracted projects overseas, resumption of deep-sea oil and gas development, dismantling of old platforms, expansion of offshore wind power jacket and submarine cables, etc. The next five years will be a period of important strategic opportunities for the company to develop and grow strong. While strengthening strategic guidance, it will accelerate its transformation into an “industry chain operator” and “total solution provider”, and endeavor to become a leading global specialized carrier company.
Source: COSCO SHIPPING