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EQS-News / 23/03/2017 / 13:24 UTC+8
*COSCO SHIPPING International Announces 2016 Annual Results*
Maintains profitability despite sluggish market
Proposes payment of special dividend to celebrate the 20th anniversary
(23rd March 2017, Hong Kong) The board of directors ("the Board") of COSCO
SHIPPING International (Hong Kong) Limited ("COSCO SHIPPING International"
or the "Company", stock code: 00517.HK) today announced the audited
consolidated results of the Company and its subsidiaries (collectively the
"Group") for the year ended 31st December 2016.
In 2016, world economy has experienced deep adjustment, while international
trade growth remained subdued. The international shipping market supply and
demand remained unbalanced, while dry bulk shipping index and container
freight rate index had hit a record low last year. Facing such severe
business environment, COSCO SHIPPING International insisted on the working
principles of "securing steady growth, ensuring profitability, and enhancing
service quality and efficiency", and coped with the market changes
proactively by improving service awareness, seeking new profit drivers and
strengthening cost control, so as to maximise the profit.
During the year, profit attributable to equity holders of the Company
decreased by 29% YOY to HK$237 million. Basic earnings per share was 15.47
HK cents. The Board proposed a final dividend of 5.5 HK cents per share
(2015: 9 HK cents). Together with the interim dividend of 4 HK cents per
share, the total dividends are 9.5 HK cents per share, representing a
dividend payout ratio of 61.4% (2015: 73.0%). In the meantime, to celebrate
the 20th anniversary of COSCO SHIPPING International's being a listed
subsidiary of COSCO SHIPPING (Hong Kong) Co., Limited, the Board proposed
the payment of a special dividend of 5HK cents per share. The final
dividends for 2016 amounted to 14.5 HK cents per share.
As at the end of 31st December 2016, COSCO SHIPPING International had net
cash of HK$6.7 billion, or HK$4.34 per share, which will provide strong
capital support for major acquisitions and expansion of existing businesses
in future.
Looking ahead, the global economic growth in 2017 is expected to be faster
than that in 2016, which will provide a stronger support for the shipping
demand. Although the overall imbalance between the supply and demand sides
in the shipping sector still exists, it is expected to be relieved to a
certain extent. The shipping market is on the rise and will become more
rational. The structural recovery of the industry will further enhance
market confidence. The further implementation of China's "Go Global"
strategy and "One Belt, One Road" initiative will present enormous
opportunities for Chinese shipping enterprises to develop new markets.
COSCO SHIPPING International remains committed to the strategic direction of
"Shipping Services Industrial Cluster", in accordance to the overall
strategic plan of COSCO SHIPPING, and strived to achieve intensive marketing
and centralised procurement, as well as to gather talents. On the one hand,
the Company will run existing businesses with a reforming and innovative
mindset, adapt to the changes and timely adjust strategies in response to
the market trend, as well as seek development opportunities. On the other
hand, the Company will actively prepare to expand the asset size by putting
considerable effort on the search of potential acquisition targets and
development plan. The Company will capitalise on its listed platform for
acquisition and corporate action, to achieve strategic upgrade and
transformation and to become a world class and leading shipping services
company in China. The Company will develop the "shipping services industrial
cluster" which can offer strong supporting services for shipping with
independent profit drivers, and to maximise the returns to the shareholders.
*Financial Summary*
*For the year ended/ as at 31st
December* *2016* *2015* *Change(%)*
Profit attributable to equity holders *237* 336 *-29%*
(HK$ mn)
Basic earnings per share (HK cents) *15.47* 21.91 *-29%*
Annual dividends per share (HK cents) *14.50* 16.00 *-9%*
Net cash per share (HK$) *4.34* 4.06 *+7%*
*Company Background*
Headquartered in Hong Kong, COSCO SHIPPING International (Hong Kong) Co.,
Ltd.("COSCO SHIPPING International")(formerly known as "COSCO International
Holdings Limited")is a listed company (stock code: 00517.HK) that provides
comprehensive shipping services. Its core businesses include ship trading
agency, marine insurance brokerage, supply of marine equipment and spare
parts, production and sale of coatings, and trading and supply of marine
fuel and related products. Its business network covers mainland China, Hong
Kong, Japan, Singapore, the USA and Europe.
COSCO SHIPPING International's ultimate controlling shareholder, China COSCO
Shipping Corporation Limited, is the world's largest shipping company in
terms of comprehensive strength. Its fleet of 1,114 ships, with a combined
capacity of 85.32 million DWT, ranks the first in the world. Looking
forward, COSCO SHIPPING International will fully seize the development
opportunity presented by China COSCO Shipping Corporation Limited, and
develop the "shipping services industrial cluster" which can offer strong
supporting services for shipping with independent profit drivers, aiming to
become a world class and leading shipping services company in China.
*Editorial Note*
The announcement of 2016 annual results is available on the website of the
SEHK (www.hkexnews.hk [1]) and the Company's website (www.coscointl.com
[2]).
*For enquiries, please contact:*
Company Secretarial & Investor Relations Department of COSCO SHIPPING
International
Zheng Xiaofeng, Candy Cheung, Deputy YK Chen, IR Manager
General Manager General Manager
Tel: (852) 2809 7820
Tel: (852) 2809 7810 Tel: (852) 2809 7706
Fax: (852) 8169 0678
Fax: (852) 8169 0678 Fax: (852) 8169 0678
Email:
Email: Email: chenyk@coscointl.com
zhengxf@coscointl.com cheungky@coscointl.c
om
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Document title: COSCO SHIPPING International Announces 2016 Annual Results
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(END) Dow Jones Newswires
March 23, 2017 01:25 ET (05:25 GMT)
