China Shipping Development posts HK$1.16b loss on weak global economy

China Shipping Development, an oil and bulk cargo carrier, said it had a first half net loss of 923 million yuan (HK$1.16 billion), dented by a sustained downturn in the domestic and overseas shipping markets amid a weak global economy.

The company, controlled by the country’s No 2 shipping conglomerate China Shipping Group, reported sales of 5.2 billion yuan for the January to June period, down 7.5 per cent, it said in a filing to the Shanghai stock exchange.

That compared with a net loss of 492 million yuan on sales of 5.67 billion yuan the same period last year.

China Shipping said an oversupply situation in the market did not improved and the company was in talks with shipyards to delay delivery of some of its ships on order. It is scheduled to take delivery of 20 ships in the second half with 1.59 million deadweight tons.

Analysts expected China Shipping Development to make a yearly net loss in 2013 but the shipping firm should return to profit in 2014 when it has fewer vessel deliveries, and volume and freight rates are forecast to trend up.

China Shipping Development, which operates one of the largest fleets of oil tankers and dry bulk cargo carriers in the Far East, had a fleet of about 195 vessels with a total deadweight of about 15 million tons as of April.