COSCO Put on Shanghai’s Watch List After Posting $1.5 Billion Loss

HONG KONG, March 27 (Reuters) – China COSCO Holdings Co Ltd posted its second-largest yearly net loss of 9.6 billion yuan ($1.5 billion) in 2012 as its bulk cargo business was hit hard by a lingering industry slump due to a supply glut and weak global economy.

China COSCO, operator of the world’s largest dry bulk cargo fleet and a major container shipper, had warned of a huge loss for 2012 and planned to sell its logistics unit to its parent to lift 2013 earnings.

The net loss was wider than a market consensus forecast for a 7.2 billion yuan deficit, according to Thomson Reuters I/B/E/S and was just below a record 10.5 billion yuan loss reported in 2011.

China COSCO will be placed on a watch list by the Shanghai stock exchange following its second straight year of losses and if this trend continues for a third year, the company will face the risk of being suspended from trading in Shanghai. (Reporting by Alison Leung; Editing by Anne Marie Roantree)

(c) 2013 Thomson Reuters, Click For Restrictions

Unlock Exclusive Insights Today!

Join the gCaptain Club for curated content, insider opinions, and vibrant community discussions.

Sign Up