China Merchants Energy Shipping has posted 22.6% on-year growth in net profit to Yuan225m ($36.3m) during the first quarter ended 31 March 2015 due to buoyant tanker markets.
Revenue for the quarter more than doubled to RMB1.36bn from YuanB660.44m a year ago.
“In the first quarter of 2015, freight rates for the VLCC market were on average higher compared to the first quarter of 2014. The dry bulk shipping market hit bottom in January this year, and the market is expected to remain weak in the long run,” CMES commented.
It added that the group managed to capture the upturn of the tanker shipping market during the first quarter, translating to an operating profit of Yuan422.09m compared to the gain of Yuan147.53m a year ago.
China Merchants Energy Shipping Company Limited, parented by China Merchants Group, is engaged in shipping industry, including tanker transportation, bulk cargo vessel transportation.
In January, CMES inked a deal with Dalian Shipbuilding Industry on the construction of a 319,000 dwt VLCC.
Meanwhile, China VLCC, a joint venture between China Merchants Energy Shipping (CMES) and Sinotrans&CSC, has bought two second-hand VLCCs from Sinokor Merchant Marine for a total of USD165 million, bringing its fleet in service to 33 VLCCs.
China VLCC signed the vessel acquisition contracts with Sunrise Petrochemical SA and Nanjing Fountain SA, both subsidiaries of Sinokor Merchant Marine, on 27 April, according to CMES' stock filing on 29 April. CMES owns 51% of China VLCC.