China Cosco has benefitted from the ongoing China government drive to boost ship scrapping, announcing that it received a subsidy of RMB1.38bn ($224.8m) for the decommissioning and upgrading of vessels.
The subsidy was recognized as non-operating income and will be included in the profit and loss of the company for the year ending 31 December 2014 to compensate the losses suffered by the company due to the advanced disassembling of the vessels, China Cosco said in a stock market announcement.
Cosco added that it expected the subsidy to have a positive impact on the operating results of the company for the year.
China Shipping Development Co (CSDC) and China Shipping Container Lines (CSCL), subsidiaries of China Shipping Group, have also received subsidies worth a combined RMB255m from ship scrapping activities between 1 January 2013 to 30 April 2014.
Source: seatrade global. 01 October 2014