SINGAPORE (May 15): Cosco Shipping International (Singapore) Company, recorded earnings of $2.8 million for 1Q18 ended March compared to a loss of $78.9 million in 1Q17.
Group turnover for the logistics management service provider surged about 3.5 times to $40.6 million in 1Q18 compared to $11.4 million in 1Q17 mainly due to turnover of $32.1 million from newly acquired logistics businesses, offset by a decrease in shipping revenue from a reduced fleet of three bulk carriers.
The increase in cost of sales of $19.3 million and increase in distribution, administrative and finance expenses of $8.1 million were mainly due to the newly acquired logistics businesses.
Other gains for 1Q18 were mainly due to foreign exchange gain of $3.0 million.
Share of profit of an associated company of $0.6 million was mainly due to share of profit from newly acquired 40% shareholdings in PT Ocean Global Shipping.
Gu Jing Song, President of Cosco Shipping, said newly acquired Cogent Holdings’ new chemical logistics project in Jurong Island, which will complement the company’s logistics business when completed, has started construction work.
Looking ahead, Gu said Cosco Shipping plans to expand its logistics network in South and Southeast Asia through acquisitions and investments and is looking into potential targets to acquire and investment opportunities.
The stock had closed 0.5 cent lower at 46.5 cents on Tuesday.
