COSCO Posted Worse-Than-Expected Loss on Cargo Price

By Finance

The biggest Chinese shipping company Cosco Holdings Co. (1919) reported a worse-than- expected annual loss as dry-bulk rates slumped.
COSCO's net loss was evaluated to 9,56 billion yuan (US$1.54 billion), compared with 10,5 billion yuan a year earlier, under domestic accounting standards, reported the Tianjin-based company said in a Shanghai stock exchange filing yesterday. This loss is wider than the 7,93 billion-yuan average loss of 5 analysts’ estimates compiled by Bloomberg. Sales rose 4,6% to 72,06 billion yuan.
COSCO's Chairman, Wei Jiafu is restructuring the assets of the shipping company in a bid to return to profitability as a 3rd straight annual loss may result in shares being delisted in Shanghai. The biggest nation's shipping line may raise as much as 27 billion yuan selling assets to its parent, stated 2 people with knowledge of the matter this month.
“All eyes are on their restructuring and turnaround plan,” told before the announcement yesterday a Hong Kong-based analyst with Daiwa Securities Group Inc., Kelvin Lau. “The loss isn't surprising.”
China Cosco is planning to sell Cosco Logistics Co. to state-backed parent company China Ocean Shipping (Group) Co. for 6,74 billion yuan, the company reported in a separate statement. The sale is going to give China COSCO a pretax gain of about 1,96 billion in 2013, the company added.
Shares of China COSCO climbed 0,3% to HK$3,82 in Hong Kong before the result was announced yesterday.