COSCO International Announces 2012 Annual Results Stable Profit Performance in a Challenging Market (SEHK Stock Code: 00517) PR Newswire HONG KONG, March 21, 2013 HONG KONG, March 21, 2013 /PRNewswire/ -- Financial Summary 2012 2011 Change For the year ended/ as at 31^st Dec Revenue (HK$ mn) 10,006 10,656 -6% Profit attributable to equity holders (HK$ mn) 363 390 -7% Basic earnings per share (HK cents) 23.98 25.80 -7% Dividend payout ratio (%) 33 35 -2pts Net cash (HK$ mn) 5,821 5,669 +3% Net cash per share (HK$) 3.85 3.75 +3% Results and Operation Highlights oProfit performance in a challenging market environment: Revenue decreased by 6% to HK$10 billion as compared to 2011. Profit attributable to equity holders of the Company declined by 7% year-on-year to HK$363 million. oHealthy operating cash flow and strong cash position: Net cash inflow generated from operating activities was HK$255 million in 2012. As at 31^st December 2012, the Group had net cash of HK$5.8 billion to support future development. oConsistent dividend payout ratio: Basic earnings per share were 23.98 HK cents. The Board has recommended a final dividend of 8 HK cents per share. Together with the interim dividend of 2 HK cents per share, total dividends for 2012 will be 2 HK cents per share, representing a dividend payout ratio of 33%. oService network development in Europe: A memorandum was signed on 18^th March 2013 regarding an acquisition of the entire issued share capital of a subsidiary of COSCO Group in Germany for a consideration of not more than EUR1.2 million. The target company is engaged in the trading and installation of marine equipment and spare parts for vessels. The proposed acquisition will help strengthen COSCO International's presence in Europe in order to form a global marine spare parts supply service network and solidify its customer and supplier relationships in the region. oMarket recognition: On 10^th September 2012, COSCO International was selected as a constituent of the Hang Seng Corporate Sustainability Benchmark Index. Business Review oIn 2012, the continuous weakness in the shipping market pushed shipping companies to adopt the strictest cost control measures and to further postpone the new build vessel deliveries. In addition, demand for new container boxes slowed down in the second half of 2012. As a result, the Group's profit before income tax (PBT) from shipping services declined by 17% year-on-year to HK$403 million. oPBT from the three traditional shipping services for shipowners (i.e. ship trading agency, marine insurance brokerage and supply of marine equipment & spare parts) declined by 21% to HK$189 million as compared to the previous year. They contributed 40% of the Group's total PBT. COSCO International completed preparations for the centralised procurement of marine spare parts and marine insurance to be implemented by COSCO fleets in the second half of 2012 and has become the sole agent for the provision of these shipping services to COSCO fleets since January 2013. This will not only further expand the business scale within COSCO Group, but also lay a good foundation for the Group to get more favorable terms from manufacturers and insurance companies due to greater business volumes and to explore more external customers and increase revenue base outside COSCO Group. oThe coatings segment's PBT reached HK$159 million, accounting for 33% of the Group's total PBT and representing a 31% year-on-year decrease. The Group's two joint-ventures, namely Jotun COSCO and COSCO Kansai, increased their market shares in 2012. In order to further strengthen their leading positions in China's marine coatings and container coatings markets, Jotun COSCO and COSCO Kansai speeded up the construction of two new plants in Qingdao and Shanghai, which are expected to be completed in 2013 and 2014, respectively. oPBT from marine fuel supply segment was HK$55 million, up 195% as compared with 2011. The increase was mainly due to the successful collection of outstanding trade receivables from a defaulting customer, which led to a reversal of the provision for impairment of trade receivables of approximately HK$29.7 million. Outlook Mr. Ye Weilong, Chairman of the board of directors of COSCO International, commented, "COSCO International will continue to work on establishing a global sales and service network, seeking acquisitions inside and outside COSCO Group, and exploring the upstream and downstream expansion along the existing value chain so as to achieve sustainable growth. With the full support from COSCO Group, COSCO International will continuously develop itself into a global leading one-stop shipping services provider, offering diversified and specialised shipping-related services and products to shipowners around the world, thereby maximising returns to shareholders." Editorial Note The announcement of 2012 annual results is available on the website of the SEHK (www.hkexnews.hk) and the Company's website (www.coscointl.com). A webcast replay of the 2012 annual results analyst meeting will be available at the Company's website after 10:00pm, 21^st March 2013. Company Background COSCO International Holdings Limited ("COSCO International") is listed on the main board of The Stock Exchange of Hong Kong Limited. Its stock code is 00517. COSCO International was selected as a constituent of Hang Seng Corporate Sustainability Benchmark Index in September 2012. In recent years, COSCO International has focused its strategic business position on the development of the shipping services business. It aims to become a global leading one-stop shop service provider focusing on shipping services to provide professional services to shipowners worldwide. 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. The headquarters of COSCO International is in Hong Kong and its businesses and service network cover China Mainland & Hong Kong, Singapore, Japan, and other major fueling ports worldwide. COSCO International is a listed company owned by COSCO (Hong Kong) Group Limited, which is a wholly-owned subsidiary of China Ocean Shipping (Group) Company ("COSCO"). COSCO is one of the major multinational conglomerates in the world, which focuses mainly on shipping, logistics, and ship building and repairing businesses as well as other shipping related businesses. For enquiries, please contact: Investor Relations Department of COSCO International Yang Ling, General Manager Candy Cheung, Deputy General Manager Tel: (852) 2809 7810 Tel: (852) 2809 7706 Fax: (852) 8169 0678 Fax: (852) 8169 0678 Email: firstname.lastname@example.org Email: email@example.com Tsoi Ching Chung, Manager Crystal Lu, Officer Tel: (852) 2809 7828 Tel: (852) 2809 7820 Fax: (852) 8169 0678 Fax: (852) 8169 0678 Email: firstname.lastname@example.org Email: email@example.com PR China Limited Henry Chik/ David Shiu/ Camille Xiong Tel: (852)2522 1838 / 2522 1368/ 2521 2823 Fax: 2521 9955 Email: firstname.lastname@example.org / email@example.com / firstname.lastname@example.org SOURCE COSCO International Holdings Limited Website: http://www.coscointl.com Website: http://www.hkexnews.hk
COSCO International Announces 2012 Annual Results
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