CMES’ 2015 Profit Skyrockets

first_imgzoom Driven by strong tanker shipping market tailwinds, the Chinese state-owned shipping operator China Merchants Energy Shipping (CMES) posted an almost fivefold surge in its 2015 net profit.Namely, compared to a net profit of RMB 200.26 million (USD 30.7 million) seen in 2014, CMES reported a 476 percent jump in its 2015 annual net profit reaching RMB 1.15 billion (USD 176.6 million).The Chinese government’s subsidy, received in September to boost the company’s efforts to dispose of the aging vessels and replace them with new tonnage, also contributed to a positive net profit.The company’s revenue for the full year stood at RMB 6.15 billion, a 136 percent increase over RMB 2.6 billion revenue reported in 2014, mainly contributed by CMES’ joint venture China VLCC, which expanded its fleet and increased its carrying capacity.While the tanker market pushed the company into the black, CMES’ dry bulk shipping business remained sluggish due to the market downturn in 2015.The company’s financial announcement was followed by CMES’ latest order of ten very large ore carriers (VLOCs) at three Chinese yards.The new vessels, which will feature 400,000 dwt each, are valued at USD 850 million.World Maritime News Stafflast_img read more

BHP Billiton buys bauxite in Guinea

first_imgBHP Billiton has acquired a 33.3% interest in Global Alumina’s Sangaredi refinery project in Guinea, for $140 million. The project comprises the design, construction and operation of a 3 Mt/y alumina refinery, 9 Mt/y bauxite mine, and associated infrastructure. A mining concession covering 690km² has been secured and a mineral resource of 233 Mt of bauxite (at 39% available alumina and 1% reactive silica) has been reported. This is considered sufficient to support the development, but further exploration work is underway to increase the resource size. The proposed refinery site is approximately 100km inland from Kamsar and has the benefit of access to rail infrastructure linking it to the Port of Kamsar, where dedicated facilities are already under construction. Graeme Hunt, President Aluminium for BHP Billiton: “This project provides the partners with access to a long life, low cost, world class resource base. In view of BHP Billiton’s other exploration interests in Guinea, this project also offers us valuable experience of operating in this first tier minerals province.”As part of the agreement, BHP Billiton will appoint the CEO and CFO of the Joint Venture Company (JVC) and will enter into a services agreement with the JVC for the development, construction and operation of the project, which will be operated in accordance with BHP Billiton standards.Global Alumina will now hold a 33.3% equity interest in the Sangaredi project, Dubai Aluminium a 25% interest and Mubadala Development 8.3%last_img read more