Cosco Shipping expects to post net loss for FY2022 on non-cash impairment

LOGISTICS management service provider Cosco Shipping International (Singapore) expects it will post a net loss for its financial year ended Dec 31, 2022, as well as record a significant deterioration in profit as compared to FY2021.

The FY2022 results were affected by a non-cash impairment of goodwill related to the company’s investment in Cogent Holdings, Cosco said in its profit guidance posted to the Singapore bourse on Wednesday (Feb 15).

Cosco, which acquired Cogent for S$490 million in 2018, noted that it recognised goodwill of S$99 million in the acquisition.

The company performed an annual impairment assessment on the goodwill and concluded that it required an impairment, and assessed the impairment amount to be S$99 million.

Cosco, which is controlled by Chinese state-owned enterprise China Cosco Shipping Corporation, said it will announce its full financial results not later than Mar 1, 2023.

Shares of the company closed 1 per cent lower at S$0.193 on Wednesday, before the announcement was made.