The board of Cosco Shipping International (Singapore) F83 has announced that it expects to report earnings of approximately $1.9 million for the FY2023 ended Dec 31, 2023, compared to the net loss of $88.86 million recorded for FY2022.
The earnings reversal is primarily due to the company recognising a non-cash goodwill impairment of $99 million that arose from its acquisition of Cogent Holdings in 2018, which affected FY2022 financial results.
While there was no such impairment of goodwill in FY2023, the company notes that its net profit had still been negatively affected by the non-renewal of sub-leases due to the expiry of its lease of The Grandstand, higher financing costs and lower contribution from associated companies.
Cosco Shipping plans to announce its full financial results for FY2023 no later than Feb 29.
Shares in Cosco Shipping closed 0.4 cents higher or 2.82% up at 14.6 cents on Feb 16.
