Shipping Giant Cosco Sees Profits Skyrocket 91% in 2024
Moderate Growth in Cargo Volumes and Disruptions in the Red Sea Drive Record Earnings
Cosco Shipping Holdings Co., the Shanghai-based parent of liner operator Cosco Shipping Lines, is expecting a remarkable 91% surge in profits for 2024. According to a statement to the Hong Kong stock exchange, the company anticipates reporting record-breaking full-year earnings, pending final adjustments.
Earnings Before Interest and Taxes Reach $9.54 Billion
The company’s earnings before interest and taxes (EBIT) for the year ending December 31, 2024, are projected to reach $9.54 billion, a staggering 90.67% increase from $5 billion in 2023. This significant growth is attributed to moderate growth in cargo volumes, coupled with the impact of disruptions in the Red Sea region, which led to a shortage of effective transportation capacity and kept freight rates high.
Record Net Profit and Shareholder Earnings
Cosco Shipping Holdings Co. is expecting a record net profit of $7.55 billion, a 95% increase from $3.87 billion in the previous year. The company’s record net profit attributable to shareholders stands at $6.7 billion, a remarkable 106% increase from $3.25 billion in 2023. After deducting non-recurring profit and loss, the net profit attributable to shareholders reaches $6.68 billion, a 106% gain from $3.24 billion in the same period in 2023.
Container Volume Growth and Integrated Supply Chain Services
The company attributes its success to the moderate growth trend in cargo volumes, as well as its integrated supply chain services, which helped navigate the complex and volatile global economic and trade situation. Although the company did not provide specific details, it emphasized the importance of its supply chain services in the face of uncertainty.
Finalizing 2024 Earnings
Cosco Shipping Holdings Co. is still in the process of finalizing its full 2024 earnings, but the initial projections indicate a remarkable year for the company. As the shipping industry continues to evolve, Cosco’s ability to adapt and capitalize on market trends has positioned it for continued success.
Leave a Reply