COSCO SHIPPING Ports announces Q1 2020 results
COSCO SHIPPING Ports Limited, the world’s leading ports operator, today announced first quarter results of the Company and its subsidiaries for the three months ended 31 March 2020.
Highlight
Revenue was US$220.5 million -11%yoy
Gross profit was US$45.6 million, -34.9%yoy
Share of profits from JV and associates was US$52.3 million, -15.5%yoy
Net Profit was US$91.9million, +84.1%yoy
OPERATIONAL REVIEW
Total throughput was 27,479,714TEU, -4.4%yoy
Total equity throughput was 8,671,140TEU, -6.6%yoy
Total throughput from subsidiaries was 5,097,361TEU, -14.2%yoy
Greater China
For the three months ended 31 March 2020, total throughput of the Greater China region decreased by 6.6% YoY to 20,655,665 TEU (1Q2019: 22,107,759 TEU).
Bohai Rim
During the period,total throughput ofthe Bohai Rim region increased by 4.5% YoY to 9,610,666 TEU (1Q2019: 9,196,254 TEU), accounting for 35.0% of the Group’s total throughput.
Yangtze River Delta
Total throughput of the Yangtze River Delta region decreased by 33.1% YoY to 3,245,605 TEU (1Q2019: 4,849,042 TEU) and made up 11.8% of the Group’s total. The drop in throughput was mainly due to completion of the disposal of Nanjing Longtan Terminal, Yangzhou Yuanyang Terminal and Zhangjiagang Terminal by the Group.
Southeast Coastand Others
Total throughput of the Southeast Coast region decreased by 9.1% YoY to 1,221,266 TEU (1Q2019: 1,343,975 TEU) and accounted for 4.4% of the Group’s total. Total throughput of Xiamen Ocean Gate Terminal decreased by 10.9% YoY to 450,026 TEU (1Q2019: 505,297 TEU).Pearl River DeltaTotal throughput of the Pearl River Delta region decreased by 12.5% YoY to 5,599,728 TEU (1Q2019: 6,397,906 TEU) and accounted for 20.4% of the Group’s total. During the period, total throughput of Guangzhou South China Oceangate Terminal decreased by 7.7% YoY to 1,273,888 TEU (1Q2019: 1,380,501 TEU).
Southwest Coast COSCO SHIPPING Ports Limited
Total throughput of the Southwest Coast region surged by 205.2% YoY to 978,400 TEU (1Q2019: 320,582 TEU) and accounted for 3.6% of the Group’s total, which was mainly because throughput from Beibu Gulf Portwas included since January 2020 and the throughput from January to March amounted to 664,716 TEU.
Overseas Regions
Total throughput of overseas region increased by 3.0% YoY to 6,824,049 TEU (1Q2019: 6,623,974 TEU) and accounted for 24.8% of the Group’s total. Throughput of Piraeus Terminal decreased by 2.4% YoY to 1,215,875 TEU (1Q2019: 1,246,007 TEU). Throughput of CSP Zeebrugge Terminal surged by 72.1% YoY to 153,209 TEU (1Q2019: 89,020 TEU), which was mainly driven by increasing volume from ad-hoc shipping calls due to strike in theterminalsin the neighboring region. Throughput of CSP Abu Dhabi Terminal recorded 158,475 TEU.
Outlook
So far, the COVID-19 Outbreak has not been contained globally and global economy is heavily and negatively impacted, casting uncertainties over global trade, which is confronted with greater challenges. In February 2020, the Group completed the disposal of Yangzhou Yuanyang Terminal and Zhangjiagang Terminal at a total consideration of approximately US$251 million, of which around US$131 million was received in February and the balance will probably be received in the second quarter. As at the end of March, the Group has cash and cash equivalents of approximately US$832 million. It is expected that there will be sufficient cash to support the dividend policy of the Company in the year 2020. In April 2020, the Group entered into an agreement related to disposal of its 30.40% interest in Jiangsu Petrochemical at a consideration of approximately RMB250 million. The Group also intends to dispose its 39.04% interest in Taicang Terminal in 2020.
About COSCO SHIPPING Ports
COSCO SHIPPING Ports Limited a leading ports operator in the world; its terminals portfolio covers the fivemain port regions in Mainland China, Southeast Asia, Middle East, Europe,South Americathe Mediterranean. As at 31 March2020, CSP operated and managed 372berths at 36 ports worldwide, of which 206 were for containers, with a combined annual handling capacity of 115million TEU.