China Merchants Energy H1 net profit up 82%

China Merchants Energy Shipping Co, the country's largest oil tanker operator by volume, said in its interim financial results that its net profit surged 82% year-on-year to RMB 854.83 million for the first half of 2008 from RMB 470.03 million a year earlier.

The strong growth is mainly due to improved margins as shipping rates increased sharply year-on-year during the first half.

The overall margin rose 9.31% year-on-year to 52.35% in the first half. The operating profit increased RMB 492.01 million to RMB 767.86 million.

The turnover was up 36% to more than RMB 1.6 billion, while the turnover last year is about RMB 1.20 billion. The company sold two aged oil carriers in the period, which brought income of RMB 121.60 million to the company. In the first half, Merchants Energy carried 13.79 million tons of cargo, down 10.63% year-on-year.

The company also sees a roughly 70% rise in net profit in the first nine months on higher shipping rates.