CSSC (Hong Kong) Shipping, the leasing arm of state-owned China State Shipbuilding Corp, looks set to report a 30% year-on-year increase in interim net profit.
The Hong Kong-listed lessor attributed the improvement to the increase in the size of its operating fleet, which has grown from 84 vessels to 114.
The company said its financial performance had also been helped by a significant decrease in finance costs, in particular, the average cost of the company’s interest-bearing liabilities had decreased by 1% to approximately 2.2% against the year-ago period.
CSSC Shipping said it had also benefited from the improvement in the dry bulk market with significant increases in operating income and profit for its bulker fleet.
The company said further details about its financial performance will be disclosed in its interim results announcement, which is due sometime in August.
CSSC Shipping has recently raised $500m from a series of “green” bonds to develop its leasing business to finance or refinance expenditure on eligible green and blue projects.
The notes were priced at the five-year US Treasury bond yield plus 145 basis points, or an interest rate of 2.1% per year, which was 40 basis points narrower than the initial price guide. The issue was said to be five times oversubscribed.
“We are trying to meet the demand for smart, eco-friendly vessels so we can meet decarbonisation targets,” CSSC Shipping said at the time of the fundraiser.
These are thought to be the first overseas issuance of green and blue dual-certified bonds by a Chinese-funded company.
Established in 2012 and listed in 2019, CSSC Shipping is the first shipyard-affiliated leasing company in Greater China and one of the world’s leading ship-leasing companies.
In 2020, the organisation was ranked sixth in the Chinese ship-leasing industry with a market share of 7.36% and was ranked fifth in terms of the total assets.
As of 31 December 2020, in terms of contract amount, bulker, containership, tankers, marine clean energy equipment and special tonnage carriers accounted for 19%, 11%, 14%, 34%, and 22% of its vessel portfolio respectively.
