Cosco Shipping FY2021 earnings soar 261 per cent

LOGISTICS management service provider Cosco Shipping F83 : F83 0%reported a surge of 261 per cent for its FY2021 earnings to S$30.1 million from S$8.3 million a year prior.

The mainboard listed company reported a 7 per cent y-o-y increase in FY2021 revenue to S$198.5 million from S$185.8 million in a filing on Tuesday evening (Mar 1).

Earnings per share for FY2021 also jumped from 0.37 Singapore cents per share to 1.34 Singapore cents per share.

The growth in revenue was driven by higher revenue from logistics and ship repair and marine engineering activities. This was partially offset by lower revenue from shipping and property management. Logistics activities make up the bulk of Cosco's revenue at 74 per cent.

Earnings growth was driven mainly by a gain on disposal of a subsidiary and higher shipping charges. This was partly offset by lower government grants.

There is uncertainty surrounding Covid-19 disruptions, rising inflation rates and labour costs, and the length and depth of economic impact, said Cosco, adding: "The company aims to pursue steady and sustainable growth through synergistic collaboration among its businesses and continuous optimisation of its current diversified portfolio."

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Shares of Cosco closed up S$0.005 or 2 per cent at S$0.255 on Tuesday.