China Shipping Container Lines (CSCL) announced in a stock market announcement that it will be benefitting this financial year from government subsidies for the scrapping of older vessels.

The CSCL Group, including its units, "has applied for the special subsidies in respect of the retirement and dismantling of seven vessels (including Xiang Pu vessel) during the period from 1 January 2013 to 30 April 2014, and has received special subsidies in the amount of approximately RMB77.7m ($12.5m) from the Ministry of Finance as subsidy for the retirement and replacement of transportation vessels on 29 December 2014".

CSCL will be recognizing the subsidies as non-operating income, and include it in the same in the consolidated profit and loss for 2014 of the group.

"Receipt of such subsidies will have a positive effect on the 2014 annual results of operation of the group," CSCL added.