COSCO H1 profit jumps 188% on higher income, lower finance cost

Group revenue increased 6% to $96.8m, supported by higher logistics revenue.

COSCO SHIPPING International’s net profit attributable to equity holders jumped 188% year on year to $7.6m in the first half, driven by higher other income and lower finance costs.

Revenue rose 6% to $96.8m, supported by higher contributions from logistics, ship repair and marine engineering.

Logistics revenue increased 6% to $85.2m, accounting for about 88% of total revenue, mainly due to higher warehousing and automotive services revenue.

Revenue from ship repair and marine engineering rose 14%, driven by higher ship repair and fabrication works, whilst property management revenue increased 1% to $1.27m.

Gross profit rose 3% to $23.8m from $23.1 million a year earlier, helped by higher margins in logistics and ship repair and marine engineering.

Other income nearly doubled 99% to $2.8m, mainly due to higher settlement income and government grants. Interest income also rose 241% to $0.98m.

Finance costs fell 62% to $1.8m due to lower borrowings, while administrative expenses increased 6%.

The Group recorded $2.8m in share of profit from associates, mainly from higher contributions by PT. Ocean Global Shipping Logistics and SINOVNL Company Limited.

Tax expense increased 17% to $3.1m as profits rose.