Cosco Shipping International (Singapore) has posted another profitable quarter and has announced a new chairman and plans to expand its logistics offering.
The Singapore-listed division of the Chinese shipping conglomerate recorded net income of SGD 1.71m ($1.23) during the second quarter.
The result is 30% lower than that seen at the same point in 2018.
Turnover was SGD 41.2m, up 3% compared to last year, but was offset by SGD $31.4m in sales costs, which increased 6% year on year.
Revenue breakdown
Cosco Singapore's income from shipping improved by 14% year on year and totalled SGD $4.3m during the second quarter.
"Turnover from shipping activities increased mainly due to revenue contribution from an additional bulk carrier that the group had chartered in during 1H 2019," Cosco Singapore said in its financial report.
This contribution, however, was partially offset by the lower charter rates seen during the first six months of 2019, compared to the same period last year, the company said.
Cosco Singapore owns three supramax bulk carriers with an average age of 14 years.
Revenue from ship repair and marine engineering decreased by 35% year on year to SGD $3.0m, "mainly due to less ship repair jobs" in the first six months, Cosco said.
Board reshuffle
Cosco Singapore today announced changes to its board of directors, including a new chairman.
After two years in the role, Wang Yu Hang has stepped down as the company's chairman due to "other personal commitments".
He will be replaced in the position by president Gu Jing Song, who is also chairman of the company's strategic development committee and a member of the nominating committee.
Li Man has also stepped down as alternate director to Wang Yu Hang.
Logistics offering
Cosco Singapore's logistics activities accounted for 71% of its revenue during the second quarter.
In contrast, its shipping business produced just over 10% of its income and its ship repair and marine engineering generated just over 7%.
The company today announced plans to acquire another logistics company in Malaysia to create a "consolidated logistics platform and integrated services".
The acquisition is part of Cosco Singapore's strategy to expand its logistics network in south and south-east Asia.
