According to Alphaliner, COSCO Shipping has confirmed that operating profit fell nearly 75% in the first quarter of 2023 following sharp drops in freight rates, as carriers grapple with the new market reality.
In a preliminary announcement, the Shanghai- and Hong Kong-listed group said it expected EBIT (earnings before interest and tax) of RMB 10.5 billion (USD 1.5 billion) for January-March, a sharp drop from 40.5 billion RMB (5.9 billion USD). ) reported a year earlier, reports Alphaliner.
They add that the figure also represents a roughly 60% decline in the fourth quarter of 2022. The group, which includes the COSCO Shipping and OOCL brands, described the company’s operations as “stable” but highlighted changes in supply and demand during the period, leading to a 68% year-on-year drop in the CCFI.
First-quarter net profit is expected to be RMB 8.4 billion, down 74% from RMB 32.6 billion a year earlier, highlights Alphaliner’s article.
Regardless of the latest market turmoil, both figures remain well above the RMB 1.9 billion and RMB 0.9 billion (EBIT and net profit, respectively) recorded in the first three months of 2019, Alphaliner concludes.
Source: Alphaliner
