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.
This post was sourced from IHS Maritime 360: View the original article here.