Investor
Relations

Financial Information

We are committed to providing timely, high quality information to investors on the internet. Whether you are interested in key performance ratios, financial news and results, we hope that you will find what you need readily here.

Financials

Third Quarter Results Financial Statement And Related Announcement

Financials Archive

Get Adobe Reader Note: Files are in Adobe (PDF) format.
Please download the free Adobe Acrobat Reader to view these documents.

Unaudited Third Quarter Financial Statement Announcement for the Financial Period Ended 30 September 2019

Income Statement

Consolidated Statement of Comprehensive Income

Review of Performance

Turnover

Turnover for Q3 2019 decreased by $0.1 million from $42.2 million to $42.1 million mainly due to lower revenue from shipping and property management, partially offset by an increase in revenue from logistics and ship repair and marine engineering.

Turnover for first nine months 2019 decreased by $0.5 million from $122.8 million to $122.3 million mainly due to lower revenue from ship repair and marine engineering. Logistics activities accounted for about 71% of the Group's turnover in first nine months 2019. Turnover from logistics activities increased mainly due to higher revenue from transportation, warehousing and automotive logistics management services, partially offset by lower revenue from container depot management services. Turnover from shipping activities increased mainly due to revenue contribution from an additional bulk carrier that the Group had chartered in during Q1 2019, partially offset by lower charter rates in the first nine months 2019 compared to the corresponding period in 2018. Turnover from property management decreased by 7% to $13.9 million mainly due to lower rental income. Turnover from ship repair and marine engineering decreased by 24% mainly due to less ship repair jobs in the first nine months 2019 compared to the corresponding period in 2018.

Profitability

Q3 2019

Gross profit decreased by 6% for Q3 2019 mainly due to higher operating costs.

Other income decreased by 41% to $0.4 million in Q3 2019 mainly due to lower interest and rental income.

Other gains and losses decreased by $0.1 million in Q3 2019 mainly due to foreign exchange loss as compared to foreign exchange gain in Q3 2018.

Distribution costs increased by 37% to $0.7 million in Q3 2019 mainly due to higher staff related costs resulted from an increase in headcount to support sales and marketing services.

Administrative expenses decreased by 5% to $5.7 million in Q3 2019 as compared to $6.1 million in Q3 2018 mainly due to lower staff costs, partially offset by an increase in professional fees incurred.

Finance costs increased by 38% to $2.1 million mainly due to an increase in interest on lease liabilities as a result of the recognition of lease liabilities following the adoption of SFRS(I) 16.

Net profit attributable to equity holders for Q3 2019 was $1.1 million as compared to $2.1 million in Q3 2018.

First nine months 2019

Gross profit decreased by 8% for first nine months 2019 mainly due to higher operating costs.

Other income decreased by 41% to $1.4 million in first nine months 2019 mainly due to lower interest and rental income.

Other gains and losses comprised mainly foreign exchange (loss)/gain and gain on disposal of property, plant and equipment. Other gains and losses decreased by $1.5 million or 40% lower as compared to first nine months 2018 mainly due to lower foreign exchange gain, mitigated by gain on disposal of property, plant and equipment.

Distribution expenses increased by 41% to $1.9 million in first nine months 2019 mainly due to higher staff related costs resulted from an increase in headcount to support sales and marketing services.

Administrative expenses decreased by 11% to $17.0 million in first nine months 2019 as compared to $19.1 million in the corresponding period mainly due to lower staff related costs, partially offset by higher professional fees incurred.

Finance costs decreased by $1.1 million to $6.5 million mainly due to lower average bank borrowings in first nine months 2019, partially offset by an increase in interest on lease liabilities as a result of the recognition of lease liabilities following the adoption of SFRS(I) 16.

Share of profit of associated companies of $1.6 million was contributed by the Group's 40% shareholdings in PT. Ocean Global Shipping Logistics and the newly acquired 30% shareholdings in Tan Cang-COSCO-OOCL Logistics Company Limited. The share of profit of associated companies was lower as compared to the corresponding period in 2018 mainly due to lower share of profit from PT. Ocean Global Shipping Logistics.

Overall, net profit attributable to equity holders was $5.7 million, 23% lower than the corresponding period in 2018.

Balance Sheet
(30 September 2019 vs 31 December 2018)

Group total assets increased by $105.4 million from $822.8 million as at 31 December 2018 to $928.2 million as at 30 September 2019. Non-current assets increased mainly due to the recognition of right-of-use assets arising from the adoption of SFRS(I) 16 and increase in property, plant and equipment.

Group total liabilities increased by $98.0 million from $291.7 million as at 31 December 2018 to $389.7 million as at 30 September 2019 mainly due to the recognition of lease liabilities arising from the adoption of SFRS(I) 16. The lease liabilities of $74.5 million as at 30 September 2019 were included in the Group's borrowings.

Shareholder's equity increased by $7.1 million to $536.7 million as at 30 September 2019. The increase was mainly due to retained profits and increase in currency translation reserves for first nine months 2019.

Cash Flow

Q3 2019

Net cash provided by operating activities for Q3 2019 was $10.9 million compared to $5.3 million in Q3 2018. The improvement in cash provided by operating activities was mainly due to the adoption of SFRS(I) 16 which operating lease payments, previously classified as operating activities, were classified as financing activities in Q3 2019 for the principal and interest portion of the lease liabilities.

Net cash used in investing activities for Q3 2019 was $0.8 million. This was mainly attributable to cash payments for purchase of property, plant and equipment and payment for the deferred consideration for acquisition of Cogent Holdings Limited, partially offset by dividend received from an associated company.

Net cash used in financing activities for Q3 2019 was $11.4 million mainly due to repayment of principal and interest on bank borrowings and lease liabilities.

First nine months 2019

Net cash provided by operating activities for first nine months 2019 was $28.2 million compared to $3.4 million in the corresponding period in 2018. The improvement in cash provided by operating activities was mainly due to the adoption of SFRS(I) 16 which operating lease payments, previously classified as operating activities, were classified as financing activities in 2019 for the principal and interest portion of the lease liabilities.

Net cash used in investing activities for first nine months 2019 was $5.9 million. This was mainly attributable to cash payments for the deferred consideration for acquisition of Cogent Holdings Limited and purchase of property, plant and equipment, partly offset by proceeds from the disposal of property, plant and equipment and dividend received from an associated company.

Net cash used in financing activities for first nine months 2019 was $32.3 million mainly due to repayment of principal and interest on bank borrowings and lease liabilities.

Commentary

Through its wholly-owned subsidiary, Cogent Holdings Limited ("Cogent") and its associates, the Company has established a logistics network in Singapore, Malaysia, Indonesia and Vietnam.

In connection with the Group's announcement of its expansion plans in Malaysia on 13 August 2019 and 20 September 2019, the Company is progressing on these matters and will make further announcements as and when there are material developments.

The Company aims to expand its logistics network in South and Southeast Asia through acquisitions and investments and continues to explore potential targets to acquire and seek investment opportunities, taking into consideration the targets' business scale and scope, historical performance, growth potential and synergy with the Group's operations.

The Company's ultimate holding company, China COSCO Shipping Corporation Limited, has a well-established logistics business network throughout the People's Republic of China ("PRC"), which the Company will be able to leverage on this existing logistics business platform to potentially develop new business opportunities in the logistics sector in South and Southeast Asia, taking advantage of the "Belt and Road Initiative" formulated by the PRC Government in 2013. The Company will also be able to offer end-to-end services to its customers with logistical needs in Singapore and Malaysia, thereby increasing the Company's competitive edge in relation to its global competitors and entrenching its customers.

With respect to the Group's shipping business, the Company's subsidiary, COSCO SHIPPING (Singapore) Pte Ltd (formerly known as 'COSCO Singapore Pte Ltd'), currently has a total of 3 vessels with a total tonnage of 163,000 tons and with an average age of 14 years. In the third quarter of 2019, the international dry bulk shipping market showed an improvement over the same period in 2018. The Baltic Dry Index averaged 2030 points in the third quarter of 2019, an increase of 26% from the average of 1607 points in the third quarter of 2018, with the highest point for the quarter being 2518 and the lowest point being 1381.

Moving forward as one team, the Group is expected to create overall synergy by engaging in cross sales and business optimization with its related companies. This will also help the Group to achieve economies of scale and scope.

Balance Sheet

Please read our General Disclaimer & Warning carefully. Use of this Website constitutes acceptance of the Terms of Website Use. Copyright © 2019. ListedCompany.com. All Rights Reserved.

Cosco Group :
Our subsidiary :
Copyright © 2018 COSCO SHIPPING International (Singapore) Co., Ltd . All Rights Reserved.
Designed by InfiniteSparks.