Cosco Shipping International (Singapore) has reported a loss of $88.6 million for FY2022, as it booked an impairment charge of $99 million.
Specifically, the impairment was on the goodwill from its acquisition of logistics company Cogent Holdings.
Cosco explains that the decision to make the impairment came about following higher inflation and interest rates and economic uncertainty.
In the previous FY2021, the company reported earnings of $30.1 million. Revenue between FY2021 and FY2022 dipped 6% to $185.6 million.
Cosco explains the dip was mainly because of the absence of shipping revenue from the sale of its 60%-held stake in a shipping subsidiary.
On the other hand, revenue from its now core logistics segment increased by 5% to $152.6 million.
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Cosco says it will look for opportunities to expand its logistical networks through strategic acquisitions and investments.
Cosco shares closed at 17 cents on March 1.
