| China Merchants Energy Shipping (CMES) aims to double its revenues in 2015 from 2014 to CNY5.4 billion (USD870.9 million) with the deliveries of newbuildings after a rash of scrapping of old tonnage last year. In 2014, CMES' revenues rose 1.4% year on year (y/y) to CNY2.6 billion, a stock filing of the company said on 24 March. Its shipping volumes fell 22.5% y/y to 41.3 million tonnes in the same year as CMES scrapped old tonnages of three very large crude carriers (VLCCs) and eight bulk carriers. The VLCC fleet of CMES expanded in 2014 as it took over the vessels from Sinotrans&CSC. As of February this year, it took delivery of 31 VLCCs. In addition, CMES received newbuildings of three VLCCs in 2014 and the first two months in 2015. Moreover, CMES returned to the black in 2014 with profits of CNY200.3 million due to government subsidies for its scrapping of old tonnage. Excluding one-off items, its losses fell 92.4% y/y to CNY154.9 million. The company predicted that this year's crude shipping market was likely to continue to rise in freight rates, with opportunities probably larger than challenges. The bulk shipping market will still face many difficulties due to capacity overhang in 2015. |