Sinotrans hit by markets

Chinese shipping group Sinotrans has endured a big profit drop in 2009, as tankers and bulkers struggled.

The Hong Kong-listed company said net earnings last year fell to $106.39m from $347.14m in 2008.

Revenues were slashed to $229.1m, from $455.97m over the same period.

Bulkers turned in a profit of $91.24m, well down on $261m in 2008, while tankers produced a loss of $1.31m, against a gain of $53m the year before.

Sinotrans blamed the downturn in the tanker market as well as its sale of single-skinned VLCCs.

Container shipping’s earnings dipped to $4.53m from $5.25m.

Looking ahead, it said the market will still be under pressure from global newbuilding deliveries this year.

But supply pressure will be relieved “to a certain extent” by resilient shipping demand in line with the gradually improving world economy, especially the rapid growth of the Chinese economy, and also the cancellation and postponement of delivery of certain newbuilding orders, it added.

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