Singapore Shipping Corp Q3 profit rises 39%

SINGAPORE - Shipping group Singapore Shipping Corporation booked a 38.7 per cent rise in its third quarter net profit at about US$ 4.2 million, compared with US$3 million a year ago.

For the three months ended 31 Dec, its revenue came in at US$12.9 million, up 39.3 per cent from the previous year, boosted by the delivery of three vessels.

In a stock exchange filing yesterday, the shipping group said turnover from its ship owning business was up 83.6 percent to US$9.2 million in the third quarter.

However, revenue from its shipping agencies and logistics segment fell 13 per cent to about US$ 3.7 million, owing to "lower business activities/margin pressures". Still, the group expects this segment to remain profitable, despite the challenges.

Net asset value per share was 17.3 US cents as at 31 Dec, compared with 15.3 US cents at 31 March 2015.

No dividend has been declared or recommended for the period.

In spite of the headwinds in the global shipping industry, which is facing "its worst ever crisis of over tonnaging across many segments", the company said it continued to perform well during the quarter due to its stream of stable recurring income.

"Given its strong cash position, the group is ready to undertake further acquisitions should any of the opportunities meet our investment criteria," it added in a statement.

Barring any unforeseen circumstances, the group expects the 2016 financial year to outperform 2015.