CSSC (Hong Kong) Shipping looks set to reap the rewards of the strong bulker market and a major expansion of its fleet over the past 12 months.
The Hong Kong-listed leasing arm of state-owned China State Shipbuilding Corp said in a regulatory filing that it expects its net profit to increase by 25% compared with a year ago.
The company did not provide a monetary figure. However, last year it reported a net profit of HKD 1.1bn ($143m), so a 25% increase would make it HKD 1.37bn.
CSSC Shipping attributed the year-on-year improvement in its performance to a number of factors including its self-operating bulker fleet.
Its owned bulker fleet numbered six vessels of 380,000 dwt as of the six months ended 30 June 2021, but it expected to add a seventh vessel, an 80,000-dwt panamax during the second half of the year.
CSSC Shipping has also benefited from the growth of its overall fleet, which has increased by 44.4% from 90 vessels at the start of the year to 130 at the end of 2021.
The leasing company said a decrease in the group's finance cost during the year had also helped improve its bottom lines.
The company said further details about its financial performance will be disclosed in its full-year results announcement, which are due to be released sometime in March.
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.
TradeWinds recently reported that the company had returned to compatriot shipbuilder Hudong-Zhonghua Shipbuilding for a further 174,000-cbm LNG carrier newbuilding.
This is thought to be the fourth LNG carrier newbuilding CSSC Shipping has placed at the Shanghai-based shipbuilder, of which two have been delivered and a third is due for delivery in 2024.
CSSC Shipping is also reported to have recently signed a letter of intent with China's Jiangnan Shipyard for one firm 175,000-cbm LNG carrier with an option for an additional vessel.
