Shanghai-listed Tianjin Tianhai Investment (TIC), formerly known as Tianjin Marine Shipping (TMSC), predicted that its profit would increase between 900% and 1,500% year on year for the first six months in 2015 on interest income.
During the period, TIC reaped substantial interest income after investing idle funds in financial products, a stock filing of TIC said on 21 July.
For the first six months in 2014, the company’s profit totalled CNY6.8 million (USD1.1 million).
In 2014, TIC raised a total of CNY12 billion in a private placement to fund its newbuilding project. TIC has held back tapping the funds since 2014 because of wider fluctuations in the crude oil shipping market, which prompted TIC to suspend its newbuilding project. TMSC had planned to order its first four of 10 VLCCs at an aggregate cost of USD400 million.
In 2013, TMSC said it planned to order 10 very large crude carriers (VLCCs) and four LNG carriers after raising funds by a private placement. It estimated that the VLCCs would cost USD90 million each, with the LNG carriers valued at USD200 million each.