China Merchants Energy Shipping (CMES) projects that its profit would be more than doubled in the first half of 2015 from a year ago.
The range of growth would be between 110% and 130% year on year (y/y) during the first half of 2015, a stock filing of CMES said. The surge in profit would be a result of its thriving international crude shipping market, the acquisition of Nanjing Tanker’s very large crude carrier (VLCC) fleet, and a jump in CMES’ crude shipping capacity.
As of 20 June, CMES has 34 VLCCs in operation, with another 11 on order.
In the first half of 2014, CMES returned to profits of CNY253.5 million (USD41 million), because of better performance of its tanker and bulk carrier fleets.
CMES aims to double its revenues in 2015 from 2014, to CNY5.4 billion with the deliveries of newbuilds after a rash of scrapping of old tonnage in 2014. In 2014, CMES’ revenues rose 1.4% y/y to CNY2.6 billion.
In May 2014, however, CMES acknowledged risks that its human resources and management levels would face difficulties meeting the demand for its rapid development in the short term, in the wake of the company’s fleet expansions. The growth in the company’s fleet size will lead to a rise in difficulties in safety management.