China COSCO President Resigns, Singapore Subsidiary Warns of Loss

by Ship & Bunker News Team
Friday December 11, 2015

China COSCO Holdings Company Limited (China COSCO) Tuesday announced that Jiang Lijun has resigned as Executive Director and President of the company, which was followed Thursday with a warning from COSCO Corporation (Singapore) Limited (COSCO Singapore) that the company's 2015 full year results will show a "significant" net loss compared to the 2014 year.

Having reached retirement, Jiang resigned from his position as Executive Director and President for China COSCO effective December 8, said the company.

"Mr. Jiang Lijun confirmed that he has no disagreement with the Board, and there is no other matter in relation to his resignation that needs to be brought to the attention of the shareholders of the company," added China COSCO in the announcement.

China COSCO announced that Xu Zunwu has been proposed by the company's Board of Directors to be appointed as the next Executive Director, which is subject to approval by the shareholders at a general meeting.

Further, it is reported that Xu would fulfill the duties of company president, effective December 9.

At the time of Jiang's resignation, Xu held the position of deputy general manager for China COSCO, among a number other positions for the company and its subsidiaries.

COSCO Singapore Expects "Significant" 2015 Loss

In a separate announcement, COSCO Singapore explained that its Board of Directors "is of the view that the 4Q2015 Results and its FY2015 Results will show a significant net loss as compared to earnings recorded in the corresponding period of the previous financial year."

The company attributed the losses to the "adverse impact" of low oil prices on the offshore marine industry, a depressed dry bulk shipping market, and the decline in demand among the COSCO Singapore shipyards.

The company further noted that its shipyards have incurred writedowns on some inventory during 2015's fourth quarter, and have therefore seen the impairment of trade receivables for certain contracts, which have been postponed and may even be cancelled.

COSCO Singapore says its 2015 full year results will be released on February 19, along with specific details on the company's financial performance.

In November, Ship & Bunker reported that the Chinese Government is expected to approve the merger of China Ocean Shipping (Group) Company and China Shipping Container Lines Co., Ltd. (CSCL) by January, a move that now appears to have the blessings of Beijing.