China Shipping Development Co (CSDC) has predicted a net profit of RMB50m ($8m) to RMB60m in the first quarter of financial year 2014, against the backdrop of an improving oil tanker and dry bulk shipping markets.

CSDC, the tanker and dry bulk arm of China Shipping Group, pointed out that it has managed to control operating costs, particularly in the areas of bunker fuel, repairs and wages, contributing to the projected profit.

CSDC posted a net loss of RMB2.2bn in 2013, worsening from a deficit of RMB73.7m in 2012. Last year's loss was largely attributed to the impairments on 20 vessels that the shipowner plans to dispose this year.