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Cosco Singapore sees rise in quarterly profits

COSCO Corp Singapore, the only listed unit of China`s biggest shipping company, yesterday reported record-breaking third-quarter results as profits jump four times. A beaming Mr Ji Hai Sheng, its president, told a well-attended results briefing for analysts and the media held at the Fullerton Hotel that it was the company`s best ever performance, thanks to increased demand for vessel maintenance.

Net profit for the three months ended September 30 surged to $56.6 million, or 5.17 cents a share, from a restated $11.3 million, or 1.04 cents a share for the same period last year. Shipyard operations contributed $188.2 million in the third quarter. Average revenue per ship repaired was $1.4 million, up from $1.1 million, as more resources were devoted to repaid jobs, which yielded higher revenues.

Cosco Singapore`s sales jumped to an all-time high of $235.1 million from $32.5 million. With the acquisition of Cosco Shipyard, the company now owns 70.6 per cent of Cosco Dalian and 75.5 per cent of Cosco Nantong. At the same time, the shipping business` contribution fell to 18 per cent of the turnover, as against 78 per cent in the same quarter a year earlier.