China Shipping Development (CSDC)’s profit soared 602% year on year to CNY299.1 million (USD46.7 million) in the first six months in 2015 on lower fuel cost and government subsidies for scrapping old tonnage.
Excluding one-off items, CSDC’s profit also rose 391% year on year to CNY491.3 million, a CSDC stock filing said. During the period, its fuel cost fell 36% year on year to CNY1.5 billion due to fall in the international oil prices. The company’s fuel cost accounted for 31% of its overall operating cost.
The company’s revenue slipped 7% year on year to CNY5.8 billion due to less sales from its bulk shipping segment.
Also, CSDC received CNY874 million in government subsidies for scrapping old tonnage in July, including 27 old bulk carriers with an aggregate capacity of 1 million dwt.
As of 30 June, the company owned 173 vessels with capacity of 16.9 million dwt. It placed orders for eight tankers with capacity of 1.7 million and took delivery of six bulk carriers with capacity of 288,000 dwt in the first half in 2015.