The shipping conglomerate saw its profits of RMB 6.79 billion ($1.07 billion) achieved in 2010, turn into a loss of Rmb10.5 billion ($1.66 billion) last year, while COSCO’s revenues dropped 12.3 percent year-on-year to approximately RMB 84.6 billion.
In view of the results performance, the board of directors resolved that it would not declare the payment of a final dividend for 2011.
The group’s container shipping and related business moved volumes totaling 6.91 million TEU in 2011, up 11.2 percent from the previous year.
However, revenues from this segment amounted to RMB 41.4 billion, down 11 percent year-on-year.
During the period, the shipping volume of the Group’s dry bulk shipping business was 262.80 million tonnes, down 6.18 percent year-on-year.
Dry bulk shipment turnover was 1.32 trillion ton-nautical miles, representing a decrease of 7.04 percent from a year ago.
Revenues from this business segment were RMB 23.4 billion, down 29 percent year-on-year.
Cosco Chairman Wei Jiafu, commenting in the firm’s earnings report, said that the global shipping market remains challenging this year because of excessive shipping capacity and slowing international trade growth. But there were some signs of improvement, he added.
Jaifu added that he expects the global container shipping market to improve in 2012 and the global dry bulk market to pick up again in the second half of the current year.