Higher finance costs push Cosco Corporation (S) to S$14.4m loss in Q1

SHIPBUILDER Cosco Corporation (Singapore) reported a S$14.4 million net loss for its first quarter ended March 31, 2016, compared to a S$0.8 million profit a year ago.

Revenue fell 27 per cent to S$722.3 million from S$991.2 million a year ago on lower marine engineering and shipbuilding revenue, though gross profit actually rose 22 per cent to S$89.3 million as costs fell faster.

But the bottom line was dragged down as finance costs rose 54 per cent to S$59.7 million, due to higher bank borrowings to fund shipyard operations.

Cosco closed at S$0.33, down half a cent, before results were announced.