Bulker woes set to hold back CSDC

Annual profit growth from tankers to be curtailed by impairments of up to $46m due to struggling dry cargo market.

State shipowner China Shipping Development Co (CSDC) has cut its profit forecast for the full year due to woeful bulker markets.

The Hong Kong-listed owner said 2015 net earnings should be between CNY 320m ($48.65m) and CNY 400m, a rise of as much as 28.6% from the CNY 311m it logged for 2014.

It attributed this to tanker rate increases, leading to a significant increase in revenue, plus cost-control efforts.

CSDC had previously predicted a jump of more than 100% in annual earnings, however.

It warned that falling bulker rates would lead to impairments of up to CNY 300m.

The China Shipping Group (CSG) company is due to become the world's biggest tanker owner by capacity when a merger of CSG's and Cosco's assets is completed.