Cosco Pacific First-Half Profit Triples on Gains From Stake Sale
Cosco Pacific Ltd. (1199), the container-terminal arm of China’s biggest shipping group, said first-half profit more than tripled, boosted by gains from selling its stake in the world’s largest container maker.
Net income increased to $560.3 million in the six months to June from $179 million a year earlier, the company said in a Hong Kong stock exchange statement today. Sales rose 7.6 percent to $395 million.
Cosco Pacific had a gain of $393.4 million from selling its holding in China International Marine Containers Group Co. (2039) to its parent earlier this year. The company’s controlling shareholder China Cosco Holdings Co. (1919) is restructuring assets in a bid to return to profitability as a third straight annual loss may result in its shares being delisted in Shanghai.
Excluding the share of profit from China International Marine and gains from the stake sale, Cosco Pacific’s profit fell 3.6 percent to $143.8 million in the first half.
Shares of Cosco Pacific fell 1.4 percent to HK$11.14 as of 1:03 p.m. in Hong Kong. The company, part of the Hang Seng Index, has gained 0.9 percent this year, compared with the gauge’s 3.7 percent drop.
Cosco Pacific’s terminals, which are predominantly in China, handled 9.7 percent more containers in the first half. The company also has interests in terminals in Greece, Hong Kong and Singapore.
The company proposed to pay a special interim dividend of 43.8 Hong Kong cents per share and an interim dividend of 18.6 Hong Kong cents, it said.
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