Shanghai-listed container carrier Tianjin Marine Shipping (TMSC) returned to the black in 2014 on reversal of write-down for disputed funds.
TMSC’s profit totalled CNY78.9 million (USD12.7 million) in 2014, up from a loss of CNY130.2 million in 2013, a stock filing of the company said on 21 April.
In November 2014, TMSC collected a total of CNY144.0 million in disputed funds from unrelated Tianjin Tianhai Group, which had been taken as impairment for the financial results of 2013.
Excluding one-off items, it remained in the red, with loss down 67% year on year (y/y) to CNY47.6 million, due to rising costs.
TMSC’s revenue rose 26% y/y to CNY423.6 million as the company expanded its operations into China’s cabotage trade routes, but its operating costs grew 34% y/y to CNY392.8 million, reducing its gross profit margin of shipping business to 3.56%.
Additionally, TMSC said it is pushing ahead with its plan to order 10 VLCCs and four LNG carriers with the funds raised by a private placement, which was completed in 2014.
The company also noted that newbuilding prices for VLCCs and LNG carriers had increased during the past year.