COSCO SHIPPING International (Singapore) Full Year 2024 Earnings: EPS: S$0.002 (vs S$0.001 in FY 2023)

Cyrus ColeSaturday, Mar 1, 2025 9:04 pm ET

2min read

COSCO SHIPPING International (Singapore) Co., Ltd. (SGX:F83) reported its full year 2024 earnings on March 1, 2025, with earnings per share (EPS) of S$0.002, a significant improvement from S$0.001 in the previous year. This strong performance can be attributed to several factors, including revenue growth, improved profit margins, and strategic initiatives.

Revenue growth was a key driver behind the company's improved EPS. In 2024, SGX:F83's revenue grew by 185.84% compared to the previous year, indicating a strong performance in its core operations. This growth is likely driven by increased demand for logistics services and improved operational efficiency. The company's logistics activities accounted for about 87% of its revenue in the first half of 2024, with revenue from logistics activities decreasing by only 1% compared to the same period in 2023. This stability in revenue from logistics activities, despite the global economic slowdown, demonstrates the company's resilience and strong market position.

Improved profit margins also contributed to the company's enhanced EPS. The company's profit margins increased significantly, from -47.73% in the previous year to 15.17% in 2024. This improvement suggests that the company has successfully implemented cost-cutting measures and improved its operational efficiency. The company's gross margin increased from 24.57% in 2023 to 30.07% in 2024, while its operating margin improved from 6.15% to 8.34% over the same period. These improvements in profit margins indicate that the company has effectively managed its costs and optimized its operations.

The company's strategic initiatives also played a crucial role in its improved EPS. In April 2024, SGX:F83 entered into a joint venture agreement with Eastern (1961) Holding Pte. Ltd. to expand its container body repair and maintenance services. This joint venture allowed the company to diversify its revenue streams and increase its market share in the region. Additionally, the company's investment in COSCO SHIPPING Bulk SEA, PT. ocean global Shipping Logistics, SINOVNL Company Limited, and Goldlead Supply Chain contributed to its improved EPS through higher profit contributions from these associated companies.

The company's reduced interest expenses also contributed to its improved net income and, consequently, EPS. In the first half of 2024, SGX:F83's interest expenses decreased by 16% compared to the same period in 2023, mainly due to the repayment of borrowings. This reduction in interest expenses positively impacted the company's net profit, contributing to the significant increase in EPS.

In conclusion, COSCO SHIPPING International (Singapore) Co., Ltd.'s strong performance in 2024, as reflected by its improved EPS, can be attributed to its revenue growth, improved profit margins, strategic initiatives, and reduced interest expenses. The company's ability to maintain its competitive edge in the market, navigate market conditions, and exercise financial discipline will be essential for sustaining its improved EPS in the long term.

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