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Cosco Q1 earnings halve on lower shipyard sales, higher debt burden
Earnings for Chinese shipbuilder Cosco Corp sank in the first quarter, weighed down by lower turnover from both its main shipyard business and dry bulk shipping unit.
Net profit plunged 94 per cent to S$766,000 for the three months to March 31 and revenue slid 5 per cent to S$991.2 million from the previous year, the firm said in a Singapore Exchange filing on Thursday.
Revenue fell mostly due to smaller contributions from marine engineering and ship repair, which were partly offset by an increase in revenue from ship building.
Cosco's interest expenses also shot up in Q1 due to higher bank borrowings to fund its shipyard operations, it said.
Earnings per share came in at 0.03 Singapore cents for the quarter, down from 0.56 cents in the corresponding period last year. Net asset value per share rose slightly, to 63.14 Singapore cents as at March 31 from 61.08 cents as at Dec 31.
Cosco Corp shares lost half a cent to close at S$0.605 on Thursday.