RPT-UPDATE 1-China COSCO makes H1 loss, warns of tough H2

(Repeats report published on Aug. 27 to more subscribers)

* H1 loss at 4.59 bln yuan vs 4.84 bln market estimate

* Warns of difficult H2 on lower demand, higher supply

* HK shares jumped 88 percent this yr outperforms market (Adds analyst comments and details)

By Alison Leung and Fang Yan

SHANGHAI/HONGKONG, Aug 27 (Reuters) - China COSCO Holdings (1919.HK), the country's largest shipping group, swung to a slightly smaller-than-expected net loss in the first half, and warned of a still tough second-half amid continuous decline of economy and trade.

"In the face of the significant over-supply and re-surging oil prices, it is expected that the operational conditions for the second half of the year will remain difficult," the company said on Thursday.

Analysts have said the freight market has begun to recover but the pace of a shipping industry upturn is likely to be slower than recovery of the world economy considering the long order books for new ships.

Drewry Shipping Consultants estimated global container volume to fall by 10.3 percent in 2009 and global container fleet capacity is expected to grow by more than 10 percent this year, China COSCO said.

China COSCO (601919.SS), which warned of a first-half net loss in July, reported a net loss of 4.59 billion yuan in Jan-June as the global recession took a toll on international trade, which badly hit sea transport volumes and rates.

The result was slightly better than a consensus forecast of 4.84 billion yuan loss from four analysts polled by Reuters and compared to a profit of 15.12 billion yuan a year ago.

Total revenue plunged nearly 60 percent to 28.9 billion yuan from 70.57 billion yuan a year ago.

For result statement please click here

China Shipping Container Lines (2866.HK) (CSCL), which vies with China COSCO as the world's sixth-l-half loss on Thursday.

To read CSCL results please click here

NARROWER LOSS