The Hong Kong port operator, COSCO Shipping Ports (CSP) delivered a strong performance in the first half of this year, due to the improved synergies with the Ocean Alliance.
Essentially, driven by sustained economic growth, an increase in the volume of foreign trade and an increase in the landfalls of the services of the Ocean Alliance, driven by their acquisitions and the lower impact of trade frictions between China and the United States , the group obtained the good results.
The total CSP yield increased 26.5% to 56.7 million TEUs in H1 2018, from the 44.8 million TEUs recorded in the corresponding period of the previous year.
In the first half of 2018, the performance of the group’s subsidiaries increased by 35% to 10.9 million TEUs and the performance of non-controlling terminals increased by 24.6% to 45.8 million TEUs. Revenues increased by 79.7% to USD 495.5 million from USD 275.8 million year-over-year.
However, CSP reported a 56.1% decrease in its net profit that amounted to USD 169 million in the first half of 2018, against USD 384.7 million in the first half of 2017. In addition, the group recorded an EBITDA of USD 339.8 million in the first half of the year. year, a decrease of 36.3% compared to USD 533.4 million recorded in the same period of the previous year.
In May 2018, the group strategically allied with the Port of Zeebrugge, the port authority of Zeebrugge, which will acquire a 5% stake in the CSP Zeebrugge Terminal, and plans to convert the terminal into a strategic port. The group completed the acquisition of 76% of the remaining share capital in CSP Zeebrugge Terminal in November 2017 and converted it into a wholly-owned subsidiary.
In an effort to boost growth, COSCO Shipping Ports also signed a strategic alliance with GLP and Eshipping to develop expanded terminal services and port supply chain platform.
Looking to the future, CSP talks about several challenges that remain in the second half of the year: trade frictions between China and the United States, in particular, can have a negative impact on economic growth, according to the port operator. However, with an established solid base, COSCO Shipping Ports remains cautiously positive about the outlook.
In addition, CSP will continue to optimize the cost structure and improve operational efficiency in a context of uncertainties that overshadow the macro environment.
The CSP terminal portfolio covers the five main port regions of mainland China, Southeast Asia, the Middle East, Europe and the Mediterranean.
