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Cosco posts 46% fall in Q3 net profit to S$1.2m on higher operating costs

MAINBOARD-LISTED Cosco Shipping International (Singapore) on Tuesday posted worse performance as net profit fell for another quarter and its board chairman stepped down. 

Third-quarter net profit for Cosco - which deals in logistics and ship repairs, among other businesses - declined 46 per cent to S$1.2 million, largely on higher operating costs. 

Turnover for the quarter ended Sept 30 was S$42.1 million, largely unchanged from S$42.2 million for the same period a year ago. Meanwhile, cost of sales increased 1 per cent to S$32.6 million. 

Earnings per share for the quarter was 0.05 Singapore cent, down from 0.09 cent a year ago. 

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Year to date, Cosco's net profit dropped 22 per cent to S$5.9 million, as turnover stayed roughly flat and cost of sales rose 2 per cent to S$94.1 million. 

For the period, earnings per share was 0.25 Singapore cent, lower than the 0.33 cent in the previous year. 

In its outlook, the group said it aims to expand its logistics network in South and South-east Asia through acquisitions and investments, and continues to explore potential targets to acquire and seek investment opportunities. Its expansion plans in Malaysia, announced earlier, are "progressing".

On Tuesday, Gu Jing Song, who had been Cosco's non-independent executive director and board chairman, resigned, just months after becoming chairman of the board in August.

Cosco said it was part of its holding company's policy to rotate "key management talents" among its business units, but did not say where Mr Gu would go. Another non-independent executive director, Zhu Jiandong, will take his place from Nov 13. 

Cosco shares closed at S$0.30 on Tuesday, up 1.70 per cent or S$0.005.