Cosco To Lose Less

Under-pressure owner China Cosco Holdings Co (CCHC) is forecasting a big drop in its first-half loss as it fights to make an annual profit.

The giant state-owned company told the Shanghai stock exchange it expects its net deficit to narrow by between 70% and 85% to 30 June, compared to the hefty loss of CNY 4.87bn ($767m) it posted a year ago.

A reduction of 85% would leave it with a deficit of CNY 730.5m, suggesting a profitable second quarter.

It reported a net loss of just under CNY 2bn for the first quarter.

Container and dry bulk shipping markets remained weak, it said, with freight rates dropping compared to the same period last year.

But it has sold stakes in Cosco Logistics and Cosco Container Industries to raise cash, as well as reducing the size of its chartered-in bulker fleet.

The company is battling to avoid a third straight year of losses, which could see it delisted in Shanghai.