LOGISTICS management service provider Cosco Shipping International (Singapore) on Thursday (Feb 29) recorded a full-year net profit of S$1.9 million, reversing from an S$88.6 million loss a year ago.
This came as its H2 net loss shrank drastically to S$59,000 from S$94.8 million in the year-ago period, after administrative expenses fell to S$13.5 million from S$112.6 million due to the absence of a S$99 million impairment of goodwill recorded in H2 FY2022.
The H2 FY2023 results translate to a loss per share of 0.003 Singapore cent, narrowing from 4.23 cents in H2 FY2022.
Sales in the second half were down 5 per cent to S$88.5 million, however, from S$93.2 million in the year-ago period, as its property management activities experienced a substantial decline, marked by a 30 per cent drop in revenue and a 59 per cent drop in profit before tax.
The company attributed this decline to a reduction in the occupancy rate at the Grandstand shopping mall, where the lease for the state land on which the shopping mall is located expired on Dec 31, 2023.
Sales in the ship repair and marine engineering segment also fell, by 26 per cent, on a drop in the volume of ship repair jobs in Singapore.
That said, logistics activities, which constituted about 85 per cent of the group’s revenue in H2 2023, remained stable as its sales came in at S$75.7 million, up slightly from S$75.4 million in the year-ago period, the group said.
For the full year, the company’s sales fell 4 per cent to S$178.7 million.
The board did not propose a dividend this year, just as was the case in FY2022.
Addressing this, the company said the board has resolved not to recommend a dividend payment as the group is evaluating strategic moves to expand its business, ensure sustainable growth and create long-term shareholders’ value.
Elaborating, it said it will be investing in and building logistics supply chain infrastructure and resources at the appropriate time, expanding the logistics supply chain network, and striving to become a leading comprehensive logistics and supply chain service company in South-east and South Asia.
Shares of Cosco Shipping fell 0.7 per cent to S$0.137 on Thursday, before the results’ release.
