Chinese ports investor Cosco Pacific Ltd. said Wednesday its 2010 net profit doubled from a year earlier due to an increase in container-handling volume as international trade continued to recover from the global financial crisis.
Managing Director Xu Minjie said in a statement major terminals in China have started to raise their tariffs this year, which will benefit the port industry, but he also warned rising inflation could pose challenges.
He added Hong Kong-listed Cosco Pacific will continue to expand its existing terminal operations, while also seeking investment opportunities in "prime terminals" this year. He didn't elaborate.
Cosco Pacific, a unit of shipping firm China Cosco Holdings Ltd., said its net profit for the 12 months ended Dec. 31 was $361.3 million, up from $172.5 million a year earlier. The result was above the average $319.1 million net profit forecast of 11 analysts polled earlier by Thomson Reuters.
The world's fifth-largest container-port operator by throughput booked a gain of about US$85 million from the sale of its 49% stake in a logistics venture, Cosco Logistics Co., to its parent for two billion yuan (U$305 million) as part of efforts to improve the company's cash position and focus on its terminals business.
Revenue rose 28% to $446.5 million from $349.4 million.
The blue-chip firm, which has stakes in container terminals in mainland China, Hong Kong, Singapore, Belgium, Egypt, and Greece, and competes with the likes of China Merchants Holdings (International) Ltd. and DP World, said its net debt-to-equity ratio fell to 30% at the end of last year, from 42% a year earlier. The company's cash balance was $524.3 million at the end of last year, up 29% from $405.8 million a year earlier.
The container-shipping industry has staged a rapid comeback since the end of 2009, fuelled by inventory restocking by retailers and improved consumer demand. Cosco Pacific said its total container throughput last year rose 19% to 48.52 million 20-foot equivalent units, or TEUs, from 40.64 million TEUs a year earlier, thanks to China's rapid recovery.
The company's container-terminal throughput in China accounted for 88.8% of its total throughput last year.
The company recommended a final dividend of 2.483 U.S. cents. It paid a final dividend of 1.199 U.S. cents a year earlier.
Managing Director Xu Minjie said in a statement major terminals in China have started to raise their tariffs this year, which will benefit the port industry, but he also warned rising inflation could pose challenges.
He added Hong Kong-listed Cosco Pacific will continue to expand its existing terminal operations, while also seeking investment opportunities in "prime terminals" this year. He didn't elaborate.
Cosco Pacific, a unit of shipping firm China Cosco Holdings Ltd., said its net profit for the 12 months ended Dec. 31 was $361.3 million, up from $172.5 million a year earlier. The result was above the average $319.1 million net profit forecast of 11 analysts polled earlier by Thomson Reuters.
The world's fifth-largest container-port operator by throughput booked a gain of about US$85 million from the sale of its 49% stake in a logistics venture, Cosco Logistics Co., to its parent for two billion yuan (U$305 million) as part of efforts to improve the company's cash position and focus on its terminals business.
Revenue rose 28% to $446.5 million from $349.4 million.
The blue-chip firm, which has stakes in container terminals in mainland China, Hong Kong, Singapore, Belgium, Egypt, and Greece, and competes with the likes of China Merchants Holdings (International) Ltd. and DP World, said its net debt-to-equity ratio fell to 30% at the end of last year, from 42% a year earlier. The company's cash balance was $524.3 million at the end of last year, up 29% from $405.8 million a year earlier.
The container-shipping industry has staged a rapid comeback since the end of 2009, fuelled by inventory restocking by retailers and improved consumer demand. Cosco Pacific said its total container throughput last year rose 19% to 48.52 million 20-foot equivalent units, or TEUs, from 40.64 million TEUs a year earlier, thanks to China's rapid recovery.
The company's container-terminal throughput in China accounted for 88.8% of its total throughput last year.
The company recommended a final dividend of 2.483 U.S. cents. It paid a final dividend of 1.199 U.S. cents a year earlier.
