COSCO SHIPPING Ports Limited Announces 2025 Annual Results – Key Highlights and Investor Insights

Strong Operational and Financial Performance Despite Market Headwinds

COSCO SHIPPING Ports Limited (“COSCO SHIPPING Ports” or “the Company”) has released its annual results for the year ended 31 December 2025, demonstrating both resilience and growth in the face of challenging global economic and geopolitical conditions. The Company’s robust performance and strategic initiatives contain several key updates that may influence investor sentiment and share price.

Key Financial Highlights

• Revenue: Increased by 11.0% year-on-year (YoY) to US\$1,669.0 million (2024: US\$1,503.0 million).
• Profit Attributable to Equity Holders: Rose by 1.1% YoY to US\$312.1 million (2024: US\$308.8 million).
• Basic Earnings Per Share: US8.14 cents, slightly down from US8.50 cents in 2024 due to higher shares in issue and increased costs.
• Dividend: Total dividend payout maintained at 40% payout ratio. First interim dividend increased by 23.6% YoY, second interim dividend decreased by 27.8% YoY.
• Gross Profit: Slightly decreased by 0.3% YoY to US\$415.5 million.
• Share of Profits from JVs and Associates: Increased by 7.3% to US\$343.4 million.
• Cost of Sales: Increased by 15.4% reflecting cost pressures (US\$1,253.5 million).

Operational Performance

• Total Throughput: Grew by 6.2% YoY to 152,994,965 TEU.
• Throughput from Controlling Terminals: Up 1.8% YoY to 33,246,933 TEU.
• Throughput from Non-Controlling Terminals: Up 7.5% YoY to 119,748,032 TEU.
• Total Equity Throughput: Up 3.4% YoY to 46,850,076 TEU.

Segment and Regional Analysis

• China Terminals: Throughput increased by 4.6% YoY, representing 75.1% of total throughput. Equity throughput up 1.6% YoY.
• Bohai Rim Region: Throughput rose by 5.1% (52,060,240 TEU), but equity throughput slightly declined.
• Yangtze River Delta: Modest growth of 2.2% in throughput; CSP Wuhan Terminal up 31.8% YoY.
• Southeast Coast: Throughput declined by 6.3%, but Xiamen Ocean Gate Terminal grew by 4.1%.
• Pearl River Delta: Throughput up 5.2%, driven by Guangzhou South China Oceangate Terminal (+7.9% YoY in container volume on Asian routes).
• Southwest Coast: Throughput up 11.6% YoY, with Beibu Gulf Port benefiting from RCEP and network expansion.
• Overseas Terminals: Throughput surged 11.5% YoY. Notably, CSP Zeebrugge Terminal’s throughput jumped 33.1%, and Suez Canal Container Terminal up by 41.3%.

Notable Developments and Potential Price-Sensitive Information

• CSP Chancay Terminal (Peru): Commenced full commercial operations in H1 2025, marking a new strategic hub in Latin America. However, the terminal reported an operating loss of US\$10.79 million as start-up costs and ramp-up investments weighed on profitability.
• Dividend Policy and Scrip Dividend Proposal: The Board declared a second interim dividend of HK10.2 cents (US1.328 cents) per share with an option for shareholders to receive scrip (new shares) instead of cash. This is conditional upon an increase in authorised share capital, which requires shareholder approval at the AGM. Failure to pass this resolution may affect dividend arrangements and could be price-sensitive.
• Financial Position: Net debt-to-total-equity ratio improved to 25.1% (from 29.6%). The Company’s liquidity is sound, with US\$1.34 billion cash and US\$851.7 million in unutilised banking facilities. However, net current liabilities stood at US\$224.5 million, a key metric for investors to monitor.
• Change in Key Management: During early 2025, Mr. Zhu Tao held both Chairman and Managing Director roles, breaching HKEX code provision C.2.1. This was rectified on 30 April 2025 with Ms. Wu Yu’s appointment as Managing Director.
• Green and Digital Initiatives: COSCO SHIPPING Ports advanced its ESG agenda, with notable progress in green port certification, electrification of equipment, and digital transformation. Five terminals are now certified as Green Ports; smart container vehicle handling rose 88.4% YoY.
• Market Outlook: The Company expects global container throughput growth to slow to 1.8% in 2026, per Drewry, and is implementing measures to enhance competitiveness, including digitalization, network expansion, and green investments.
• Major Awards: In 2025, the Company received several accolades for ESG, investor relations, and corporate governance, which may enhance its reputation and market positioning.
• Geopolitical Risks: The Company is closely monitoring the Middle East situation, which may impact operations. Management is prepared to take measures to ensure business continuity.

Other Financial and Strategic Details

• Cost Pressures: Cost of sales and administrative expenses rose significantly due to labor, ramp-up of new terminals, and higher concession fees. Investors should note the squeeze on margins.
• Interest Costs and Debt Structure: Finance costs increased by 3.3% YoY, but the average cost of bank borrowings declined to 4.54% (from 5.21%), reflecting proactive debt management.
• Taxation: Tax expenses fell by US\$21.5 million due to policy adjustments and deferred tax recognition at the new Chancay Terminal.
• Major Customers: Two customers contributed over 10% each to Group revenue, increasing concentration risk.

Investor Relations and Corporate Governance

• The Company maintains high standards of corporate governance and transparency, with robust board and committee structures.
• No purchases, sales, or redemptions of shares during the year. The Company is committed to fair information disclosure and strong investor engagement, as evidenced by multiple investor events and timely updates.
• Emphasis on sustainable development, diversity, and community engagement, aiming for “carbon neutrality by 2050” and continued board diversity and independence.

Potential Share Price Catalysts

• Dividend policy changes, especially if the scrip dividend is not approved at the AGM, may trigger volatility.
• Performance at new and overseas terminals (e.g., Chancay, Zeebrugge, Suez Canal) will be closely watched by the market for their impact on future profitability.
• Ongoing cost pressures, debt management, and macroeconomic/geopolitical risks (especially in the Middle East) could affect future margins and earnings.
• Strong ESG performance and industry awards may attract more institutional and ESG-focused investors, potentially supporting share price.

Key Dates for Shareholders

• Book closure for second interim dividend: 10 April 2026 to 16 April 2026
• 2026 AGM (key vote on scrip dividend): 22 May 2026
• Dividend/warrant/share certificate dispatch (if approved): 30 June 2026

Disclaimer

This article is intended for informational purposes only and does not constitute investment advice or a recommendation to buy or sell any securities. Investors should conduct their own research or consult a professional advisor before making any investment decisions. The information is based on the Company’s official announcements and reports and may be subject to change without notice.

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