Cosco Shipping International (S) shrinks Q2 loss by 43%

COSCO Shipping International (Singapore) Company slashed its second quarter net loss by 43 per cent to S$20.81 million mainly on lower cost of sales and administrative expenses.

Loss per share was 0.93 Singapore cent, lower compared to 1.64 Singapore cents for Q2 FY2016.

Gross profit surged 80 per cent to S$20.76 million on a 33 per cent decline in cost of sales.

Turnover was down by 31 per cent to S$524.74 million.

Administrative expenses fell to S$888,000 from S$13.03 million as net reversal of impairment of trade and other receivables jumped 112 per cent to S$32.39 million.

The listed shipping group announced after trading closed on Friday, a proposed acquisition of about 40 per cent in equity interest of Jakarta-based PT Ocean Global Shipping.

A non-binding memorandum of understanding was signed for the proposed acquisition of the equity stake from the group's affiliate, Cosco Shipping (South East Asia) Pte Ltd.

The group said that the acquisition will be funded by the proceeds raised from the proposed divestment of its equity held in yard-operating units, Cosco Shipyard Group Co, Cosco (Nantong) Shipyard Co, Cosco (Dalian) Shipyard Co to Cosco Shipping Heavy Industry Co.