Cosco Shipping Q3 profit down on absence of profit from discontinued operations

COSCO Shipping International's third-quarter net profit fell 91 per cent year on year to S$2.12 million as the corresponding quarter a year ago was boosted by a profit from discontinued operations of $23.6 million relating to the disposal of the group's shipyard business in China.

During the quarter under review, revenue jumped by over six times from S$7 million to S$42.15 million on the back of contributions of S$34.5 million from newly acquired logistics businesses.

Earnings per share for the quarter came to 0.09 Singapore cent, down from 1.10 cents a year ago.

Share of profit of an associated company of nearly $0.7 million was mainly due to share of profit from the newly acquired 40 per cent stake in PT Ocean Global Shipping.

Cosco said that 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 investment opportunities. It added: "In the third quarter of 2018, the international dry bulk shipping market showed an improvement over the same period in 2017." 

Its subsidiary Cosco Singapore currently has three vessels with a total tonnage of 163,000 tonnes and with an average age of 13 years.

The counter closed at 35.5 Singapore cents on Monday, down half a cent.