China Cosco warns of 50% plunge in first half profit

State-owned China Cosco Holdings is expected to record a 50% year-on-year plunge in net profit in the first six months of 2012 due to the weak global economy and excessive shipping capacity, Seatrade Asia online reports.

The Hong Kong-listed company posted a net profit of RMB2.76bn ($432.66m) in the six months ended 30 June 2011.

Cosco blamed the impending net loss to weak economic growth and excessive capacity leading to the unbalance in demand and supply in the international shipping market.

“In particular, freight rates in the dry bulk shipping market remained low and the relevant costs, including fuel costs, remained at high levels,” China Cosco said.