COSCO Shipping International (Singapore) recorded a net profit attributable to equity holders of SGD 263.9 million (USD 198.9 million) for the full year of 2017, marking a major recovery when compared to the full-year loss of SGD 466 million booked in 2016.
The group recorded loss from continuing operations in dry bulk shipping and other businesses of SGD 27.1 million on turnover of SGD 37.2 million for FY 2017.
Group turnover from continuing operations decreased by 8.2 pct year-on-year mainly due to a decrease in shipping revenue from a smaller fleet of bulk carriers.
Currently, the group’s dry bulk shipping fleet comprises three Handymax carriers, having scrapped seven bulk carriers by the end of last year.
Commenting on the market outlook, COSCO said that given the fact that the world dry bulk shipping market is still seeing excess tonnage and overall poor macroeconomic conditions, any recovery in the dry bulk shipping segment will remain weak.
Other losses increased by SGD 21.5 million to SGD 24.3 million for 2017 mainly due to the loss on disposal of property, plant and equipment.
The group recorded net profit from discontinued operations of SGD 166.9 million for 2017 which included gain recognized on the disposal of subsidiaries of SGD 373.6 million, offset by loss from discontinued operations of SGD 206.7 million. Profit from discontinued operations attributable to equity holders stood at SGD 291 million.
This relates to the group’s shipyard business in China, which it agreed to dispose of in 2017.
Namely, the group sold its 51 pct equity interest in Cosco Shipyard Group, 50 pct equity interest in Cosco (Nantong) Shipyard and 39.1 pct equity interest in Cosco (Dalian) Shipyard.
The company added that all conditions for its acquisition of a 40 pct stake in Jakarta-based PT Ocean Global Shipping for USD 10.24 million have been met and that the transfer of shares has been completed. Payment will be made no later than December 31, 2018.
PT. Ocean Global Shipping is engaged in logistic service, container canvassing and management, ship agency and chartering and bunkering.