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COSCO SHIPPING Ports Limited
COSCO SHIPPING Ports Limited

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2007 interim results

Date:2007-08-23     Publish:本站

2007 Interim Results
 

The board of directors of COSCO Pacific Limited (“COSCO Pacific” or the “Company”) is pleased to announce that the Company and its subsidiaries (the “Group”) have delivered solid results performance for the six months ended 30th June 2007.

  • Profit attributable to the equity holders of the Company rose by 8.9% to US$148,517,000
  • Earnings per share grew by 7.4% to US6.64 cents
  • Interim dividend* of HK24.9 cents (2006: interim dividend of HK27.4 cents and special interim    dividend** of HK9.1 cents) per share were declared
  • Dividend payout was 51.7% excluding the Put Options Non-cash Income (2006: 51.7% excluding the Put Options Non-cash Expense)
  • Total container terminal throughput rose by 23% to 18,417,429 TEUs
  • Total number of berths reached 119 (2006: 104)
  • Total container leasing and management fleet increased by 25.8% to 1,397,952 TEUs
  • Average utilisation rate was 94.6% (2006: 96.0%)
  • Won "Best Corporate Governance Award 2007" from The Asset magazine

*  The calculation of interim dividend is based on the profit attributable to equity holders excluding Put Option Non-Cash Income (2006: excluding Put Options Non-cash Expense) associated with the CIMC Share Reform.
** The calculation of 2006 special interim dividend is based on the non-recurrent net profit from the disposal of 600,082 TEUs of containers in 2006.

Solid performance in the first half of 2007

In the first half of 2007, the Company achieved profit attributable to equity holders of US$148,517,000, an increase of 8.9% over the previous year, and earnings per share of US6.64 cents (2006: US6.18 cents). The Board of the Company proposed an interim dividend of HK24.9 cents per share (2006: interim dividend of HK27.4 cents and special interim dividend of HK9.1 cents). The dividend payout ratio was 51.7% (2006: 51.7%) of profit attributable to equity holders of the Company.

Terminal and related business

The Group held various equity interests in 24 terminal joint ventures as at 30th June 2007, with a total of 119 berths (2006: 104 berths), including 113 container berths, 2 automobile berths and 4 multipurpose berths. The annual handling capacity recorded an increase of 10.3% to 63,000,000 TEUs (2006: 57,100,000 TEUs) when compared with the corresponding period last year.

Among 119 berths under the Group’s terminal portfolio, 83 berths were in operation (2006: 66 berths), representing an increase of 17 berths, including 78 container berths, 2 automobile berths and 3 multipurpose berths. The annual container handling capacity of operating berths increased by 24.9% to 39,600,000 TEUs (2006: 31,700,000 TEUs).

During the period, the Group’s container terminal business continued to grow strongly with throughput up 23.0% to 18,417,429 TEUs. Terminals in the Bohai Rim recorded an outstanding performance, with aggregate throughput of 8,181,025 TEUs, representing an increase of 33.9%. Total throughput of the terminals in the Yangtze River Delta region rose by 2.4% to 3,881,561 TEUs over the same period last year. Terminals in the Pearl River Delta and the southeast coastal region recorded satisfactory results, with an increase of total throughput of 22.9% to 5,588,253 TEUs over the corresponding period last year. The throughput of overseas terminals rose 45.5% to 766,590 TEUs. Net profit contribution for the terminals and related business rose 38.1% to US$62,010,000 in the first half of 2007.

Container Terminal

1H 2007
TEUs

1H 2006
TEUs

y-o-y

Bohai Rim
  Qingdao Qianwan Container Terminal Co., Ltd.
  Qingdao Cosport International Container Terminals Co., Ltd.
  Dalian Port Container Co., Ltd.
  Dalian Port Container Terminal Co., Ltd.
  Tianjin Five Continents International Container Terminal Co., Ltd.
  Yingkou Container Terminals Company Ltd.

8,181,025
4,026,677
492,582
1,749,367
414,210
952,673
545,516

6,110,855
3,155,907
400,382
1,294,558
134,844
737,371
387,793

+33.9%
+27.6%
+23.0%
+35.1%
+207.2%
+29.2%
+40.7%

Yangtze River Delta
  Shanghai Container Terminals Limited
  Shanghai Pudong International Container Terminals Ltd.
Ningbo Yuan Dong Terminals Limited
Zhangjiagang Win Hanverky Container Terminal Co., Ltd.
Yangzhou Yuanyang International Ports Co., Ltd.
  Nanjing Port Longtan Container Co., Ltd.

3,881,561
1,618,337
1,357,173
39,896
300,389
138,871
426,895

3,790,026
1,941,717
1,242,515
--
217,843
107,562
280,389

+2.4%
-16.7%
+9.2%
--
+37.9%
+29.1%
+52.3%

Pearl River Delta and southeast coastal region
  COSCO-HIT Terminals (Hong Kong) Ltd.
Yantian International Container Terminals Ltd. (Phases I, II, III)
  Guangzhou South China Oceangate Container Terminal Co., Ltd.
Quanzhou Pacific Container Terminal Co., Ltd.    

5,588,253
906,589
4,164,935
131,678
385,051

4,547,135
823,493
3,723,642
--
--

+22.9%
+10.1%
+11.9%
--
--

Overseas
  COSCO-PSA Terminal Private Ltd.
  Antwerp Gateway NV

766,590
400,117
366,473

526,732
284,750
241,982

+45.5%
+40.5%
+51.4%

Total Throughput

18,417,429

14,974,748

+23.0%

Total Throughput in China

16,744,250

13,624,523

+22.9%

On 12th April 2007, Yangzhou Yuanyang Terminal, whose 55.59% equity interest is held by the Company, signed a letter of intent and related agreements with Jiangdu Municipal Government of Jiangsu Province regarding a strategic investment in the port of Jiangdu. Yangzhou Yuanyang Terminal will invest in and operate Berth No. 1 and 2 and have the rights to use and develop the adjacent land of approximately 1,330,000 m2  and the ancillary facilities of the port of Jiangdu. Yangzhou Yuanyang Terminal was also granted the right of first refusal for the development of new berths in the port.

On 20th April 2007, China Ocean Shipping (Group) Company, the ultimate holding company of the Company, entered into a Cooperative Agreement with Haikou Municipal Government of Hainan Province, pursuant to which the parties agreed to establish a joint venture by the Group and Hainan Harbor & Shipping Co., Ltd. ("Hainan Harbour & Shipping"), in which the Company will hold the controlling equity interests, to operate the core business of Hainan Harbor & Shipping and develop Qiongbei port area into a hub port in Hainan Province. Hainan Harbor & Shipping is the biggest state-owned port and shipping enterprise in Hainan Province.

On 20th April 2007, the Company entered into a letter of intent with Fujian Provincial Communication Transportation (Shareholding) Co., Ltd. ("Fujian Transportation"), pursuant to which, COSCO Pacific will acquire approximately 29% equity interest in Fuzhou Port Group Co., Ltd. ("Fuzhou Port Group"). Fuzhou Port Group, a wholly-owned subsidiary of Fujian Transportation, is mainly engaged in the operation of container, coal and ore terminals and other terminal-related businesses. Fuzhou Port, the operating base of Fuzhou Port Group located in Fujian Province, is a major coastal port in China and one of the ports designated by the Ministry of Communications for trial run of direct transportation between the mainland China and Taiwan.

Container leasing and management

As at 30th June 2007, Florens Container Holdings Limited, a wholly-owned subsidiary of the Company, and its subsidiaries (collectively the "Florens") owned and managed a container fleet of 1,397,952 TEUs (2006: 1,111,336 TEUs), representing an increase of 25.8% over the corresponding period last year. Florens ranked as the third largest container leasing company (2006: the third) in the world and accounted for approximately 13.0% market share (2006: approximately 10.7%). Average age of the Group’s total container fleet was 3.99 years (2006: 4.38 years). The overall average utilisation rates was 94.6% (2006: 96.0%), well above the industry average of approximately 92.8% (2006: approximately 91.8%).

As at 30th June 2007, the Group leased a total of 502,529 TEUs of containers (2006: 416,270 TEUs) to COSCON, representing an increase of 20.7% as compared with the same period last year and accounting for 35.9% (2006: 37.5%) of the total number of containers. Containers available to international customers were 238,587 TEUs in total (2006: 60,410 TEUs), representing an increase of 294.9% as compared with the same period last year and accounting for 17.1% (2006: 5.4%) of the total number of containers. There was a total of 656,836 TEUs of management containers (2006: 634,656 TEUs), representing an increase of 3.5% over the corresponding period~ last year and accounting for 47.0% (2006: 57.1%) of the total number of containers.

During the period, the Group disposed of 36,453 TEUs of returned containers (2006: 20,698 TEUs). Net profit on disposal of returned containers was US$3,637,000 (2006: US$4,889,000). In June 2007, the Group completed the sale of marine containers of 31,352 TEUs (2006: 600,082 TEUs) and together with the container leasing agreements of those containers. After the disposal, the Group continued to provide the administrative and management services to the buyer and receive an annual administrative fee.


The container leasing revenue dropped during the period due to the container fleets directly owned by the Company decreased after the disposal of containers of 600,082 TEUs at the end of June last year. Net profit from container leasing and container management businesses in the first half of 2007 was US$50,232,000 (2006: US$68,519,000 excluding the non-recurring net gain on the disposal of containers of 600,082 TEUs in June last year and finder fee income associated with the disposal of approximately US$65 million in aggregate), a drop of 26.7% over the corresponding period last year.

Logistics

During the first half of 2007, the business segments of COSCO Logistics Co., Ltd., such as third party logistics, shipping agency, freight forwarding, were on a rapid and steady upward track and recorded a significant increase as compared with the corresponding period last year. Net profit from the logistics business of the Group increased by 19.2% to US$11,113,000. (2006: US$9,321,000).

 

1H2007

1H2006

y-o-y

Third party logistics

 

 

 

  Product logistics

 

 

 

    Home appliance (piece)

17,734,000

13,617,000

+30.2%

    Automobile (unit)

197,991

233,879

-15.3%

    Chemical (tonne)

1,339,832

293,937

+355.8%

  Project logistics (RMB)

428,000,000

322,000,000

+32.9%

Shipping agency (voyage)

63,497

62,508

+1.6%

Freight forwarding

 

 

 

Sea freight forwarding

 

 

 

    Bulk cargoes (tonne)

70,762,066

64,330,800

+10.0%

    Container (TEU)

1,039,453

905,101

+14.8%

  Air freight forwarding (tonne)

52,044

45,140

+15.3%

Container manufacturing

Due to substained demand on containers during the period, production and sales performed better than the same period last year. Net profit contribution from China International Marine Containers (Group) Co., Ltd. rose by 3.4% to US$27,756,000 (2006: US$26,843,000).

In addition, Shanghai CIMC Reefer Containers Co., Ltd. and Tianjin CIMC North Ocean Container Co., Ltd. provided the Group with a total profit contribution of US$2,021,000  (2006: US$5,203,000) for the period, representing a decrease of 61.2% as compared with the same period last year.

Other investments

Chong Hing Bank Limited, in which the Group holds a 20% equity interests, made a net profit of US$7,629,000  (2006: US$6,327,000), representing an increase of 20.6% from the same period last year.

Investor relations

COSCO Pacific strongly believes that good investor relations play an essential role in enhancing corporate values. The management of the Company strives to ensure better corporate transparency and corporate governance standards. The Company has been greatly inspired by the following awards granted during the period and will continue to improve its quality of investor relations and corporate governance standards.

Company Awards:

  • Awarded "Best Investor Relations 2006" by IR magazine;
  • Among "The Forbes Global 2000" published by Forbes, a financial magazine in the US, and on list for three consecutive years;
  • Won "Best Corporate Governance Award 2007" from The Asset, a financial magazine;
  • Won "Corporate Governance Asia Recognition Awards 2007" from Corporate Governance Asia magazine;
  • Upon winning the award of "Directors of the Year Awards 2006" from Hong Kong Institute of Directors last year, the Company was invited to be the lead sponsor for "Directors of the Year Awards 2007" to promote the significance of good corporate governance and specialised duties of directors.

 

Prospects

In the second half of this year, the Group is dedicated to strengthening and expanding terminal business and enhancing the profitability of terminal business by increasing the terminal investment with controlling rights as well as diversifying terminal portfolio. Terminal business continues to be our major profit contributor and the most prominent core business. Meanwhile, we will continue to expand our container leasing fleets, optimise the operating models of container leasing and management and strengthen marketing and cost control to expand the sources of profit.

It is expected that the economy and international trade of China will show strong growth impetus along the steady upward track of the global economy. The growth of the global GDP and the import and export trade will remain relatively high, which can further enhance the container trade volume. In view of this, the management of COSCO Pacific will seize opportunity of the robust economic development in China. By timely adjusting our existing businesses and capital structure, we will concentrate our resources on advantageous businesses and investments and make more effort to gear up the development of our core businesses to enhance corporate values. Meanwhile, we are dedicated to maintaining sustainable development and actively seeking business development to further expand the Company and consolidate our leading position in the industry, so as to further increase our profitability and hence, shareholders’ returns.