COSCO SHIPPING Ports Limited (“COSCO SHIPPING Ports” or “CSP” or the “Company”; SEHK stock code: 1199), the world’s leading ports operator, today announced Third Quarter results of the Company and its subsidiaries (the “Group”) for the 3 months and 9 months ended 30 September 2023, sources IRAsia.
Third Quarter Results Highlights
- Total throughput increased by 4.1% YoY to 35,603,127 TEU
- Equity throughput increased by 2.7% YoY to 11,407,984 TEU
- Total throughput from subsidiaries decreased by 3.4% to 8,242,228 TEU
- Revenue of the Company increased by 2.7% YoY to US$358,902,000
- Profit attributable to equity holders of the Company decreased by 4.0% YoY to US$83,312,000
Financial Review
COSCO SHIPPING Ports’ 3Q2023 revenue increased by 2.7% YoY to US$358.9 million. Cost of sales increased by 4.4% YoY to US$258.0 million. Gross profit decreased by 1.4% YoY to US$100.9 million. During the period, profit attributable to equity holders of the Company was US$83.3 million, recording a decrease of 4.0% YoY.
Operational Review
China: For the three months ended 30 September 2023, total throughput of terminals in China increased by 4.3% to 27,133,886 TEU (3Q2022: 26,010,165 TEU), accounting for 76.2% of the Group’s total throughput. Equity throughput of terminals in China increased by 4.4% YoY to 8,124,119 TEU (3Q2022: 7,778,188 TEU), accounting for 71.2% of the Group’s equity throughput.
Bohai Rim: For the three months ended 30 September 2023, total throughput of the Bohai Rim region increased by 7.8% YoY to 12,261,670 TEU (3Q2022: 11,373,371 TEU), accounting for 34.4% of the Group’s total throughput. Equity throughput in the Bohai Rim region increased by 5.2% YoY to 3,362,406 TEU (3Q2022: 3,194,868 TEU), accounting for 29.5% of the Group’s equity throughput. Dalian Container Terminal Co., Ltd.’s total throughput increased by 8.8% YoY to 1,202,732 TEU (3Q2022: 1,104,947 TEU), benefiting from the new shipping services.
Yangtze River Delta: For the three months ended 30 September 2023, total throughput of the Yangtze River Delta region decreased by 4.8% YoY to 3,770,354 TEU (3Q2022: 3,959,405 TEU), accounting for 10.6% of the Group’s total throughput. Equity throughput in the Yangtze River Delta decreased by 7.1% YoY to 1,061,308 TEU (3Q2022: 1,141,951 TEU), accounting for 9.3% of the Group’s equity throughput. The total throughput of Shanghai Pudong International Container Terminals Limited and Shanghai Mingdong Container Terminals Limited decreased slightly by 1.4% and 2.1% YoY respectively to 660,993 TEU and 1,559,314 TEU (3Q2022: 670,694 TEU and 1,592,730 TEU).
Pearl River Delta: For the three months ended 30 September 2023, total throughput of the Pearl River Delta region increased by 1.6% YoY to 7,390,310 TEU (3Q2022: 7,270,910 TEU), accounting for 20.8% of the Group’s total throughput. Equity throughput in the Pearl River Delta region decreased by 0.8% YoY to 2,064,230 TEU (3Q2022: 2,081,226 TEU), accounting for 18.1% of the Group’s equity throughput. Due to the gradual recovery in the Europe and the North America services, the total throughput of Yantian International Container Terminals Co., Ltd. increased by 5.2% YoY to 3,790,624 TEU (3Q2022: 3,603,682 TEU).
Southwest Coast: For the three months ended 30 September 2023, total throughput in the Southwest Coast region increased by 18.0% YoY to 2,142,100 TEU (3Q2022: 1,815,900 TEU), accounting for 6.0% of the Group’s total throughput. Equity throughput in the Southwest Coast Region increased by 6.5% YoY to 485,565 TEU (3Q2022: 455,721 TEU), accounting for 4.3% of the Group’s equity throughput. The increase in throughput was mainly attributable to increased trade routes between ASEAN countries and provinces in the central and western China after the entry into force of the Regional Comprehensive Economic Partnership (RCEP).
Prospects
Since 2023, the global economy has experienced low growth rates under the influence of multiple negative factors such as persistent inflation, high interest rates and geopolitical tensions. China’s manufacturing Purchasing Managers’ Index (PMI) showed an upward trend for four consecutive months and returned to the expansion zone, the economic recovery situation continues to consolidate. In the face of these challenges, COSCO SHIPPING Ports, with its comprehensive global terminal network, continued to capitalize on the synergies with the dual brands of the parent company, and achieved a year-on-year growth rate of 4.1% in total throughput in the third quarter. Looking ahead, the Group will continue to focus on “Lean Operations”, strengthen business marketing and enhance the quality of terminal operation and efficiency; solidly promote cost reduction and increase efficiency, focusing on controlling the cost per TEU, implement cost refinement and control measures, and continue to broaden financing channels, optimize the structure of financing, and reduce the cost of capital.
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Source: Irasia
