MAINBOARD-LISTED Cosco Shipping International posted a 68.4 per cent fall in net profit for the fiscal first half from the year before.

This was due to a lower share of profit from associated companies and higher interest expense, the logistics management service provider said on Friday (Aug 11).

Of note is a 77 per cent increase in the group’s finance costs to S$7 million, owing to higher borrowing costs resulting from the rise in interest rates, its latest financials showed.

Net profit for the six months ended Jun 30 stood at S$2 million, compared with a net profit of S$6.2 million in the same period a year ago.

The results translate to earnings per share of 0.09 Singapore cent, against earnings per share of 0.28 Singapore cent in the year-ago period.

Revenue slipped 2.5 per cent to S$90.2 million, due to a 6 per cent fall in revenue from logistics activities to S$72.6 million. The logistics segment accounted for 80 per cent of the group’s revenue in the first half. The group said lower revenue from supply chain management services and transportation services in Malaysia caused this.

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However, it noted that its effects were partially offset by a 4 per cent rise in revenue from its property management segment to S$7.3 million, and a 26 per cent rise in revenue from its ship repair and marine engineering segment to S$10.3 million.

No dividend was declared for the financial period under review.

As for its outlook, Cosco Shipping said economic conditions remain challenging while the Covid-19 situation has stabilised. Therefore, the group will continue to engage in synergistic collaboration among its businesses and optimisation of its operations and diversified portfolio to ensure profitability while remaining agile, it said.

Shares of Cosco Shipping closed at S$0.146 on Friday, up S$0.001 or 0.7 per cent.