PortandTerminal.com, January 23, 2020
SHANGHAI – 2019 was a good year for Cosco despite the China/USA trade war. The company has forecast its profit for the full year to be $1 billion, which includes the sale of its Long Beach terminal.
In April, Cosco’s Orient Overseas (International) Limited announced its sale of Long Beach Container Terminal (LBCT) to a consortium led by Macquarie Infrastructure Partners for $1.78 Billion.
After removing non-recurring gains, Cosco expects to report net profit of $201 million. It did not release operating results.
Cosco said in a statement that its 2019 performance exceeded expectations despite trade friction with the United States that lasted all year. The carrier said it built on the first full year of a dual-brand strategy with subsidiary OOCL and increasing volume to the US from Southeast Asia and other regions to mitigate the impact of the US-China trade war.
While the annual report won’t be released until later in the first quarter, Cosco said preliminary calculations indicate that net profit attributable to shareholders will have grown by 449% to RMB6.76 billion ($970 million), although that includes the gain from the sale of LBCT for $1.78 billion to a consortium led by Macquarie Infrastructure Partners. Cosco was required to sell the terminal as a condition of its $6.3 billion acquisition of OOCL parent Orient Overseas (International) Ltd in 2018.
Cosco said it dealt with the trade friction between the US and China by building its capacity in non-Chinese markets, a strategy employed by all carriers as sourcing shifted to get around the US tariffs on Chinese-made products.
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