Cosco Shipping International reports 13 per cent increase in net profit for FY20

COSCO Shipping International's net profit rose 13 per cent year-on-year to S$8.33 million in FY2020, boosted by government grants as well as contributions from newly acquired subsidiaries in Malaysia.

Revenue was 8 per cent higher at S$185.84 million on the back of revenue contributions from the subsidiaries in Malaysia as well as revenue from its increased fleet of bulk carriers that the group had chartered in FY20.

Meanwhile, earnings per share worked out to 0.37 Singapore cent in FY20, up from 0.33 cent in the prior year.

For the year under review, gross profit fell by 25 per cent to S$30.06 million due to lower rental revenue as a result of rental waivers as well as lower gross margins.

Other income swelled from S$1.42 million to S$13.26 million, largely due to grants from the Singapore government as part of the support measures to fight the pandemic.

In an update on its proposed plans to lease land in Port Klang to build a 300,000 square foot warehouse, Cosco said it is facing delays due to the state of emergency declared in Malaysia.

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Meanwhile, it has obtained a partial temporary occupation permit for the first three stories of its Jurong Island Chemical Logistics Facility. The construction of the other parts of the facility are expected to be completed in the first half of this year, Cosco added.

The company highlighted that it aims to expand its logistics network in South and South-east Asia via acquisitions and investments. It also expects to be able to leverage on its holding company, China Cosco Shipping Corporation, to potentially secure new business opportunities in the logistics space in South and South-east Asia.

Cosco said: "With the evolving situation surrounding the pandemic, there is still a high level of uncertainty in terms of the length and depth of its economic impact on the company's financial performance in the next 12 months. The company will continue to monitor the evolving situation and place focus on enhancing stakeholders' value."

No dividend was proposed for the current financial period, as was the case in FY19.

The counter closed at 27.5 Singapore cents on Monday, up half a cent or 1.85 per cent.