Cosco's net profit in the first half of 2024 was 16.87 billion yuan
On the evening of August 29, COSCO Offshore Control released a number of important announcements, including the performance of the first half of 2024 and the latest shipbuilding news.
Operating results were better than expected
According to the performance report, in the first half of 2024, COSCO Offshore Control achieved operating income of 101.201 billion yuan, an increase of 10.19%. Among them, the container business completed 12,459,500 TEUs, an increase of 9.34%, and achieved a revenue of 97.477 billion yuan, an increase of 10.41%; The terminal business completed a total throughput of 69.85585 million TEUs, an increase of 8.19%, and achieved a revenue of 5.091 billion yuan, an increase of 4.95%.
In addition, during the reporting period, COsco Offshore achieved a profit before interest and tax (EBIT) of 24.655 billion yuan, a total profit of 23.06 billion yuan, and a net profit of 19.55 billion yuan, of which the net profit attributable to shareholders of listed companies was 16.87 billion yuan, an increase of 309 million yuan year-on-year, and the operating performance was better than expected.
It is worth mentioning that the supply chain revenue of COSCO Sea Control other than shipping reached 19.893 billion yuan, an increase of 17.28%.
The global layout opens the accelerated advanced mode.
Since 2024, five 24,188TEU energy-saving vessels and three 14,100 TEU Latin American extreme vessels of COSCO's subsidiaries have been put into the Asia-Europe Main Line and the South American emerging market routes, respectively.
As of June 30, 2024, the capacity of COSCO's self-operated container fleet reached 3.24 million TEU, an increase of 6.5% over the beginning of the period, and the fleet size continues to remain in the first echelon of the industry.
The whole chain services show an iterative upgrading trend.
Cosco Maritime Control continues to build a global digital supply chain service ecosystem that integrates "container shipping + port + related logistics".
In terms of resource construction, the construction of investment and operation platforms in North America, Europe, Southeast Asia, South America, and Africa has accelerated, and the construction of US-Mexico cross-border services, European railway operation platforms, and supply chain resources in Central and Eastern Europe, South America, and Southeast Asia has been promoted. At the same time, COSCO Marine Control relies on the construction of supporting resources at terminals such as Piraeus Port, ABU Dhabi Port and Tianjin Port TCT, and constantly improves its regional service radiation capacity.
In terms of expanding sea and rail transport, in the first half of 2024, COSCO Sea Control not only successfully opened the Lazaro - Mexico City package transport service, achieving seamless connection between Mexico's railway freight trunk line and global routes, but also opened the Wuhan-Xiamen - Europe rail and sea transport channel, providing a more convenient way for the central region to link global trade. At present, COSCO Maritime Control has opened a total of 550 domestic and foreign trade sea-rail combined transport channels.
Based on the above resource construction, COSCO Sea Control continues to improve the product innovation capacity of the whole chain. In the first half of 2024, COSCO Offshore Control launched a series of full-chain products such as "heart match" dynamic packaging products, "Global easy" third country products, and "Haitetong". More than 30 combined products have been launched, covering more than 90 countries and regions around the world, effectively enriching the number and form of products in the global supply chain.
With the deep integration of digital intelligent construction and modern industrial system, COSCO Offshore Control accelerates the transition from "airline products" to "digital supply chain products".
Since 2024, the blockchain electronic bill of lading has issued more than 130,000 votes, maintaining the lead among similar platforms. Paperless cargo delivery has been promoted in more terminals, the dangerous goods core information blockchain project has completed the chain of cargo transportation identification certificate, the installation rate of new boxes of dual-brand IBOX equipment has reached 100%, and the application of intelligent container transfer system has saved 3.9% of the cost compared with last year. MY REEFER cold chain intelligent management platform Smart PTI coverage area extends to Australia and Southeast Asia.
Intelligent and visual management of full-link resources such as shipping, docks, trailers, warehousing, customs clearance, etc., to provide customers including lithium batteries, photovoltaic, cross-border e-commerce, from standardization to personalized full-chain solutions. During the reporting period, the freight volume of the above three types of goods of COSCO continued to maintain a high growth rate, increasing by 22.8%, 27.6% and 61.3% respectively.
In addition, in the face of the continuous tension of the global supply chain, COSCO provides customers, especially small and medium-sized customers, with online services of the whole process, and carefully builds a stable, efficient and diversified supply chain service guarantee matrix.
Low-carbon transformation to build up the momentum of green rise.
Cosco Offshore conforms to the new development trend of green, low-carbon and intelligent shipping industry, and continues to promote the green and low-carbon transformation of fleet and terminals.
Since 2024, COSCO Sea Control has paid close attention to the IMO Convention and the new environmental protection regulations and policies of the European Union, and made every effort to promote fleet compliance and energy conservation and emission reduction. While steadily advancing the construction of 12 24,000TEU methanol dual-fuel power vessels, in the first half of 2024, eight more ships signed contracts for methanol dual-fuel power transformation, and continue to promote the fleet transformation plan, biofuel pilot, and green fuel supply chain construction.
Looking ahead to the second half of 2024, COSCO said that the global economy is showing a slow recovery trend, and the situation of the container shipping market is cautiously optimistic. There are challenges such as complex and severe geopolitical situation, profound adjustment of the global economic and trade pattern, concentrated delivery of new market capacity, and increased compliance costs caused by green and low-carbon transformation. There are also opportunities such as the gradual recovery of traditional markets such as Europe and the United States, the acceleration of the development of emerging markets, the steady growth of demand in the consolidation market, and closer cooperation in the industrial chain.
In the future, COSCO will continue to focus on COSCO Shipping Group's vision of "accelerating to build a world-class shipping technology enterprise", and actively promote supply chain ecological innovation, intelligent interconnection ecological innovation, green and low-carbon ecological innovation around its positioning of "global digital supply chain operation and investment platform with container shipping as the core". We will strive to foster new development models and new growth drivers through scientific and technological innovation, and better enable high-quality development through new quality productivity, so as to provide customers with better services and create greater value for shareholders.
Order 12 methanol-powered big ships
In order to comply with the new development trend of green, low-carbon and intelligent shipping industry, on August 29, COSCO Shipping Consolidation, a wholly-owned subsidiary of COSCO Maritime Control, signed a construction contract with Yangzhou COSCO Shipping Heavy Industry for 12 14,000TEU Latin American Extreme type High cold intercalated methanol dual-fuel power container ships in Shanghai.
The 14,000TEU methanol dual-fuel container ship signed this time is jointly designed by COSCO Shipping Consolidation, COSCO Shipping Heavy Industry and China Shipbuilding and Ocean Engineering Design and Research Institute. It adopts innovative design and advanced technology, strong route adaptability, large cold container loading capacity, green environment protection, safety and intelligence.
With a total length of 335.9 meters and a width of 51 meters, the ship adopts invisible globe bow and tail energy saving devices, the main engine and generator are both methanol dual-fuel models, and it is also equipped with the world's largest capacity class permanent magnet shaft generator, bow wind hood, hull air lubrication system and intelligent ship system independently developed by COSCO Shipping Group. Meet EEDI Phase 3 energy efficiency targets and the latest cybersecurity regulations.
At the same time, as the world's leading container liner company, COSCO has always adhered to the customer-centric approach, continuously promoted the structural optimization of the container fleet and the balanced layout of global routes, and provided global customers with more stable, reliable, safe and efficient supply chain services.
According to reports, this batch of ordered ships belong to 14,000TEU type high cold intercaling container ships, with better navigation performance, suitable for a wide range of routes, can better meet the increasingly diversified transportation needs of customers, and is conducive to maintaining the first echelon of the global container liner industry.
At present, COSCO Offshore Control mainly adopts a combination of new construction and upgrading of existing vessels to accelerate the green and low-carbon transformation of its fleet. It has ordered 12 24,000TEU methanol dual-fuel power container ships, signed 8 ships methanol dual-fuel power transformation contracts, and simultaneously promoted pure electric ship operation, biofuel pilot and other green development practices, which has accumulated strong momentum for the new racing track.
Operating results were better than expected
According to the performance report, in the first half of 2024, COSCO Offshore Control achieved operating income of 101.201 billion yuan, an increase of 10.19%. Among them, the container business completed 12,459,500 TEUs, an increase of 9.34%, and achieved a revenue of 97.477 billion yuan, an increase of 10.41%; The terminal business completed a total throughput of 69.85585 million TEUs, an increase of 8.19%, and achieved a revenue of 5.091 billion yuan, an increase of 4.95%.
In addition, during the reporting period, COsco Offshore achieved a profit before interest and tax (EBIT) of 24.655 billion yuan, a total profit of 23.06 billion yuan, and a net profit of 19.55 billion yuan, of which the net profit attributable to shareholders of listed companies was 16.87 billion yuan, an increase of 309 million yuan year-on-year, and the operating performance was better than expected.
It is worth mentioning that the supply chain revenue of COSCO Sea Control other than shipping reached 19.893 billion yuan, an increase of 17.28%.
The global layout opens the accelerated advanced mode.
Since 2024, five 24,188TEU energy-saving vessels and three 14,100 TEU Latin American extreme vessels of COSCO's subsidiaries have been put into the Asia-Europe Main Line and the South American emerging market routes, respectively.
As of June 30, 2024, the capacity of COSCO's self-operated container fleet reached 3.24 million TEU, an increase of 6.5% over the beginning of the period, and the fleet size continues to remain in the first echelon of the industry.
The whole chain services show an iterative upgrading trend.
Cosco Maritime Control continues to build a global digital supply chain service ecosystem that integrates "container shipping + port + related logistics".
In terms of resource construction, the construction of investment and operation platforms in North America, Europe, Southeast Asia, South America, and Africa has accelerated, and the construction of US-Mexico cross-border services, European railway operation platforms, and supply chain resources in Central and Eastern Europe, South America, and Southeast Asia has been promoted. At the same time, COSCO Marine Control relies on the construction of supporting resources at terminals such as Piraeus Port, ABU Dhabi Port and Tianjin Port TCT, and constantly improves its regional service radiation capacity.
In terms of expanding sea and rail transport, in the first half of 2024, COSCO Sea Control not only successfully opened the Lazaro - Mexico City package transport service, achieving seamless connection between Mexico's railway freight trunk line and global routes, but also opened the Wuhan-Xiamen - Europe rail and sea transport channel, providing a more convenient way for the central region to link global trade. At present, COSCO Maritime Control has opened a total of 550 domestic and foreign trade sea-rail combined transport channels.
Based on the above resource construction, COSCO Sea Control continues to improve the product innovation capacity of the whole chain. In the first half of 2024, COSCO Offshore Control launched a series of full-chain products such as "heart match" dynamic packaging products, "Global easy" third country products, and "Haitetong". More than 30 combined products have been launched, covering more than 90 countries and regions around the world, effectively enriching the number and form of products in the global supply chain.
With the deep integration of digital intelligent construction and modern industrial system, COSCO Offshore Control accelerates the transition from "airline products" to "digital supply chain products".
Since 2024, the blockchain electronic bill of lading has issued more than 130,000 votes, maintaining the lead among similar platforms. Paperless cargo delivery has been promoted in more terminals, the dangerous goods core information blockchain project has completed the chain of cargo transportation identification certificate, the installation rate of new boxes of dual-brand IBOX equipment has reached 100%, and the application of intelligent container transfer system has saved 3.9% of the cost compared with last year. MY REEFER cold chain intelligent management platform Smart PTI coverage area extends to Australia and Southeast Asia.
Intelligent and visual management of full-link resources such as shipping, docks, trailers, warehousing, customs clearance, etc., to provide customers including lithium batteries, photovoltaic, cross-border e-commerce, from standardization to personalized full-chain solutions. During the reporting period, the freight volume of the above three types of goods of COSCO continued to maintain a high growth rate, increasing by 22.8%, 27.6% and 61.3% respectively.
In addition, in the face of the continuous tension of the global supply chain, COSCO provides customers, especially small and medium-sized customers, with online services of the whole process, and carefully builds a stable, efficient and diversified supply chain service guarantee matrix.
Low-carbon transformation to build up the momentum of green rise.
Cosco Offshore conforms to the new development trend of green, low-carbon and intelligent shipping industry, and continues to promote the green and low-carbon transformation of fleet and terminals.
Since 2024, COSCO Sea Control has paid close attention to the IMO Convention and the new environmental protection regulations and policies of the European Union, and made every effort to promote fleet compliance and energy conservation and emission reduction. While steadily advancing the construction of 12 24,000TEU methanol dual-fuel power vessels, in the first half of 2024, eight more ships signed contracts for methanol dual-fuel power transformation, and continue to promote the fleet transformation plan, biofuel pilot, and green fuel supply chain construction.
Looking ahead to the second half of 2024, COSCO said that the global economy is showing a slow recovery trend, and the situation of the container shipping market is cautiously optimistic. There are challenges such as complex and severe geopolitical situation, profound adjustment of the global economic and trade pattern, concentrated delivery of new market capacity, and increased compliance costs caused by green and low-carbon transformation. There are also opportunities such as the gradual recovery of traditional markets such as Europe and the United States, the acceleration of the development of emerging markets, the steady growth of demand in the consolidation market, and closer cooperation in the industrial chain.
In the future, COSCO will continue to focus on COSCO Shipping Group's vision of "accelerating to build a world-class shipping technology enterprise", and actively promote supply chain ecological innovation, intelligent interconnection ecological innovation, green and low-carbon ecological innovation around its positioning of "global digital supply chain operation and investment platform with container shipping as the core". We will strive to foster new development models and new growth drivers through scientific and technological innovation, and better enable high-quality development through new quality productivity, so as to provide customers with better services and create greater value for shareholders.
Order 12 methanol-powered big ships
In order to comply with the new development trend of green, low-carbon and intelligent shipping industry, on August 29, COSCO Shipping Consolidation, a wholly-owned subsidiary of COSCO Maritime Control, signed a construction contract with Yangzhou COSCO Shipping Heavy Industry for 12 14,000TEU Latin American Extreme type High cold intercalated methanol dual-fuel power container ships in Shanghai.
The 14,000TEU methanol dual-fuel container ship signed this time is jointly designed by COSCO Shipping Consolidation, COSCO Shipping Heavy Industry and China Shipbuilding and Ocean Engineering Design and Research Institute. It adopts innovative design and advanced technology, strong route adaptability, large cold container loading capacity, green environment protection, safety and intelligence.
With a total length of 335.9 meters and a width of 51 meters, the ship adopts invisible globe bow and tail energy saving devices, the main engine and generator are both methanol dual-fuel models, and it is also equipped with the world's largest capacity class permanent magnet shaft generator, bow wind hood, hull air lubrication system and intelligent ship system independently developed by COSCO Shipping Group. Meet EEDI Phase 3 energy efficiency targets and the latest cybersecurity regulations.
At the same time, as the world's leading container liner company, COSCO has always adhered to the customer-centric approach, continuously promoted the structural optimization of the container fleet and the balanced layout of global routes, and provided global customers with more stable, reliable, safe and efficient supply chain services.
According to reports, this batch of ordered ships belong to 14,000TEU type high cold intercaling container ships, with better navigation performance, suitable for a wide range of routes, can better meet the increasingly diversified transportation needs of customers, and is conducive to maintaining the first echelon of the global container liner industry.
At present, COSCO Offshore Control mainly adopts a combination of new construction and upgrading of existing vessels to accelerate the green and low-carbon transformation of its fleet. It has ordered 12 24,000TEU methanol dual-fuel power container ships, signed 8 ships methanol dual-fuel power transformation contracts, and simultaneously promoted pure electric ship operation, biofuel pilot and other green development practices, which has accumulated strong momentum for the new racing track.
