COSCO Pacific is seeking to expand its overseas terminal networks and increase its stakes in terminals.
COSCO Pacific, China's biggest port operator, is seeking to expand its overseas terminal networks and increase its stakes in terminals, reports said. The expansion comes despite the company posting a 31.8% year-on-year drop in net profit for the first-half (H1) of this year. Details of the expansion plans were not immediately available.
The company also announced that an agreement is in place to sell 49% of its wholly owned subsidiary CP Logistics to parent China COSCO Holdings for $292.6 million in cash, the South China Morning Post reported. China COSCO indirectly owns about 51% of COSCO Pacific.
CP Logistics conducts cargo terminal services, which differs from COSCO Pacific's major business as a global port operator.
The sale will allow COSCO Pacific to focus on its core terminal businesses.
Net profit for the port operator fell to $104.51 million in H1 from $153.15 million in the same period a year ago, while revenue dropped 1.87% over the same period to $159.02 million.
COSCO Pacific warned that outlook for H2 will remain challenging.
''Even though the decline in trading activities turned moderate in the second quarter of 2009, it is still difficult to predict when the economy will recover,'' Xu Minjie, vice-chairman and managing director of COSCO Pacific, was reported saying.
The widespread geography of the ports invested in by COSCO Pacific has helped to cushion the impact of slowing international trade with the relatively resilient domestic trade in H1.
The port portfolio of COSCO Pacific includes 17 China terminals and three international terminals.