Shanghai-listed China Merchants Energy Shipping (CMES) projects its January-September 2015 profit to surge 400-430% from a year ago.
The expected increase in profit is driven by the company’s projected earnings from the bullish tanker market, as well as revenue contribution from its joint venture, China VLCC, with Sinotrans & CSC.
The company projects its net profit for the first three quarters of 2015 to quadruple from a year ago, with a gain of CNY313.07 million (USD49.2 million).
News of the projected net profit is accompanied by the signing of a 20-year contract in September with Brazilian mining giant Vale to ship 6 million tonnes of ore per year.
Furthermore, CMES in September received CNY741 million (USD116 million) in government subsidies for demolition of old tonnage and fleet renewals.
According to the company’s stock filing to the Shanghai Stock Exchange, the subsidies will be positive for the company’s 2015 full-year results.