Cosco Shipping Profit Surges 49% on Higher Rates

Cosco Shipping Co., a unit of China's biggest shipping company, said first-half profit jumped by 49 percent because it charged more to carry coal, steel and other dry-bulk cargo.
Net income climbed to 354.7 million yuan ($47 million), or 0.54 yuan a share, from 237.6 million yuan, or 0.36 yuan, a year earlier, Cosco Shipping said in a statement to Shanghai's stock exchange today, citing domestic accounting standards. The company, based in the southern Chinese city of Guangzhou, said sales rose 35 percent to 2.45 billion yuan.

The Baltic Dry Index, a benchmark for the price of hiring ships to carry coal, iron ore and other commodities, has jumped 60 percent this year. China's economy grew 11.9 percent in the second quarter from a year earlier, the fastest pace in 12 years.

Cosco Shipping also said trading of its shares will remain suspended today as the company plans to sell bonds to fund expansion. The stock last traded at 28.29 yuan on Aug. 6, up 9 percent.