COSCO reports 18% decline in revenue as profits rise

COSCO International Holdings has announced its consolidated results for the year ended December 31, 2014. It reported that revenue declined by 18% year-on-year to HK$7.58bn. The company also recorded gross profit of HK$804.49m, an increase of 16% year-on-year. Accordingly COSCO’s gross profit margin stood at 10.61%.

COSCO states that the fall in revenue was mainly due to the gradual withdrawal from relatively high risks businesses. The decline was heavily influenced by a fall in revenue from marine fuels and related products as other segments recorded growth.

The increase in gross profit was mainly attributable to the improvement to the margins of container coatings and asphalt products, as well as the increase in the commission income of the ship trading agency. In addition, finance income during the year increased by 52% to HK$142.97m, as the group successfully secured higher deposit rate from banks. What’s more there was a notable surge in profitability at the group’s joint venture, Jotun COSCO, which saw gross profit surge by 511% to HK$64.74m.