October 30, 2017 / 11:28 AM / a year ago

COSCO Shipping plans $2 billion share sale to build ships

SHANGHAI (Reuters) - COSCO Shipping Holdings (601919.SS)(1919.HK) said on Monday it would raise 12.9 billion yuan ($2 billion) through a share sale to build new ships as it returned to profit for the first nine months of the year.

The Chinese shipping giant reported a profit of 2.7 billion yuan for the nine months to September, after making a loss of 9.2 billion yuan over the same period last year.

Having flagged that it would post a profit earlier this month, it also posted revenues of 67.6 billion yuan as a global recovery in freight rates gathers pace.

COSCO Shipping, which suspended trading in its mainland-listed shares last Thursday, said it would undertake a private placement to fund the building of 20 container ships, six of which will be able to carry over 21,000 twenty-foot containers. Trading in its shares will resume on Tuesday.

The container shipping industry entered a period of recovery this year after a prolonged slump, which has prompted shipping lines to contemplate new ship orders. In September, France’s CMA CGM said it would order nine giant container ships from Chinese shipyards.

Reporting by Brenda Goh; Editing by Alexander Smith

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