The Hong Kong-listed oil tanker and bulk shipping arm of China Shipping to focus more of its operations on the tanker segments.
Weak dry bulk freight rates have persuaded the Hong Kong-listed oil tanker and bulk shipping arm of China Shipping to focus more of its operations on the tanker segments.
Estimates suggest some 60% of the business of China Shipping Development Corp (CSDC) is dry bulk cargo shipping, with oil and product tankering making up the remaining 40%.
Chairman Li Shaode has been quoted saying that for 2009 he ?sees a better performance in (the) oil tanker business as oil shipping freights [rates] are more stable.?
According to reports, the company plans to do more oil shipping business ?this time?.
An entry into the natural gas segment has been talked about although company officials say that move is still in its planning stages.
CSDC slashed its revenue targets for 2009 even though 2008 saw it report record results.
2008 profits for CSDC were up 18% year-on-year to about $790 million (5.4 billion yuan) while revenues jumped 39% to about $2.5 billion (17.2 billion yuan).
The company however expects revenues of no more than $1.4 billion (9.8 billion yuan) this year ?due to weaker cargo demands and a huge supply of new [vessel] deliveries,? reports said.