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.

 

Cosco says it will look for opportunities to expand its logistical networks through strategic acquisitions and investments.

 

LOGISTICS management service provider Cosco Shipping International (Singapore) : F83 -1.03% expects it will post a net loss for its financial year ended Dec 31, 2022, as well as record a significant deterioration in profit as compared to FY2021.

 

The FY2022 results were affected by a non-cash impairment of goodwill related to the company&rsquo s investment in Cogent Holdings, Cosco said in its profit guidance posted to the Singapore bourse on Wednesday (Feb 15).

 

Cosco, which acquired Cogent for S$490 million in 2018, noted that it recognised goodwill of S$99 million in the acquisition.

 

The company performed an annual impairment assessment on the goodwill and concluded that it required an impairment, and assessed the impairment amount to be S$99 million.

 

Cosco, which is controlled by Chinese state-owned enterprise China Cosco Shipping Corporation, said it will announce its full financial results not later than Mar 1, 2023.