SITC International Holdings has posted stronger results for 2018 but warned of downside risks this year due to macroeconomic weakness.
The Hong Kong-listed container line, which focuses on intra-Asian trade, posted a 7.5% year-on-year gain in revenues to $1.45bn last year on higher freight rates and shipping volume.
Net profits increased to $198m in 2018 from $187m in 2017.
Despite higher bunker costs, the company was able to achieve better results “through effective management of shipping capacity”, according to its annual report.
“The company continued to adopt an efficient and low-cost expansion strategy.”
Looking forward, SITC pointed out business risks amid a possible global economic slowdown but highlighting Southeast Asia as a likely bright spot.
“Although the global economic recovery is expected to sustain, with the impact of increasing uncertainties in trade policies of major economies, the growth of international trade will be influenced by the greater downside risk of economic growth,” SITC said.
“With the improved construction of infrastructure in Southeast Asian ports, trade development of Southeast Asian countries may become the bright spot in the future, and the company will continue to implement its expansion plan prudently in the Asian market based on the prevailing situation.”
The company declared a dividend of HKD 26 cents ($3.32 cents) for 2018, compared with HKD 30 cents in the previous year.
As of 31 December 2018, SITC operated a fleet of 79 containerships with a total capacity of 107,000 teu, including 52 owned ships and 27 chartered vessels.
