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Cosco back into the black for FY2017 on disposal gain
COSCO Shipping International (S) Co turned black for the financial year of 2017, helped by a profit from discontinued operations.
Net profit for FY2017 was S$263.88 million, a reversal from a loss of S$466.50 million.
The listed group which has sought to restructure its business partly by divesting its shipyard operations, posted a profit from discontinued operations of S$291.12 million for FY2017 after disposal gains. This more than offset a loss of S$27.25 million from its continuing operations in dry bulk shipping and other businesses.
Earnings per share were 11.78 Singapore cents compared to a loss per share of 20.83 Singapore cents.
Turnover for FY2017 was S$37.19 million, down from S$40.51 million for FY2016 as shipping revenue declined from a smaller fleet of bulk carriers.
But the company turned in a gross profit of S$11.56 million for FY2017, reversing from a loss of S$6 million for FY2016 mainly due to some recovery in the relatively low charter rates of bulk carriers and write-back of accrued owner's expenses for scrapped vessels.
Other losses rose more than sevenfold to S$24.33 million, up from S$2.8 million mainly due to a loss on disposal of property, plant and equipment.
Net asset value per share was 23.01 Singapore cents, up from 15.01 Singapore cents.
Cosco said that dry bulk shipping is recovering but from a very low base due to excess tonnage and overall weak macroeconomic conditions.
The group now aims to leverage on its newly acquired platform, Cogent Holdings, to develop new business opportunities in South and South-east Asia.
It also seeks to wrap up a deal to buy about 40 per cent interest in Indonesia-based PT Ocean Global Shipping. The transfer of shares has recently been completed, and payment for this transaction will be made no later than Dec 31, 2018.
Cosco closed 0.5 Singapore cent up at 46 Singapore cents.