COSCO Faces 3th Straight Year of Losses
OREANDA-NEWS. February 08, 2013. The world's largest bulk shipper, China COSCO, now faces the risk of delisting for its Shanghai A-shares if it fails to turn around in 2013.
The shipping conglomerate posted a net loss of 10.4 billion yuan (USD1.7 billion) for 2011 and is expected to record a second straight year of losses in 2012.
Hongkong-based financial service provider CLSA forecasts the company may post a net loss of 7.8 billion yuan in 2012 and a 2.4 billion yuan loss in 2013.
COSCO, controlled by state-owned China Ocean Shipping Company, operated 171 container vessels and over 300 bulk cargo vessels at the end of September last year.
Also, oil tanker operator Nanjing Tanker, whose shares have been placed under "special treatment", is likely to be the first shipping firm to face a share suspension.
The special treatment limits the daily trading movement of their shares to 5 percent, instead of the regular 10 percent.
If both shipping companies can not turn around their balance books in 2013, they will have to face delistings from the A-share market next year.
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