China Shipping Development Co (CSDC) has made a positive profit forecast for 2015 due mainly to the strong tanker shipping market and stringent cost control.

The tanker and bulker shipping arm of China Shipping Group (CSG) has estimated a net profit of between RMB320m ($48.5m) to RMB400m for 2015, up from the gain of RMB310.97m recorded in 2014.

CSDC said the expected improved performance was mainly due to higher freight rates in the oil transportation market and cost control efforts, particularly over bunker fuel costs and labour costs.

However, the sluggish dry bulk shipping market has hit the Chinese shipowner, as it also announced there could be an impairment on certain assets in its dry bulk business and has proposed to make substantial provision for impairment losses.

CSDC said the estimated provision for impairment losses on the assets will not exceed RMB300m, representing less than 0.5% of the company’s total non-current assets.