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Annual Report 2014
Other income and other gains and losses comprised gain
from the disposal of scrap metal, interest income, net
currency exchange gain/(loss) and others. Compared to
2013, other income and other gains and losses increased
marginally by 1.7% to $112.0 million in 2014 mainly due
to an exchange gain of $6.7 million (2013: exchange loss
of $18.9 million) and partially offset by lower government
grants and compensation received from customers.
Interest expense increased by 15.2% to $127.7 million
in 2014 due to higher bank borrowings deployed to fund
shipyard operations.
The tax credit of $9.0 million in 2014 is mainly due to tax
incentives available to certain subsidiaries in the People’s
Republic of China (PRC), recognition of previously
unrecognised deferred tax assets in the current financial
year and the adjustment for over provision of tax in
respect of prior years.
Net profit attributable to equity holders of the Company
decreased 31.8% from $30.6 million in 2013 to $20.9
million in 2014.
BALANCE SHEET AND CASH FLOW
(31 December 2014 vs 31 December 2013)
Cash and cash equivalents decreased from $2.0 billion
to $1.6 billion mainly due to cash used in operating
activities.
Trade and other receivables increased $1.6 billion to
$4.6 billion mainly due to higher construction contracts
due from customers in the marine engineering segment,
partially offset by a decrease in advances paid to
suppliers (from $595.6 million to $494.7 million).
Trade and other payables decreased $63.7 million to
$2.6 billion mainly due to a decrease in advances
received from customers (from $558.8 million to $364.9
million), partially offset by higher accruals for operating
expenses.
Total borrowings increased by $1.2 billion to $5.0 billion
due to additional funding procured to finance shipyard
operations.
SHARE CAPITAL
COSCO’s share capital remained unchanged at $270.6
million. There was no new issue and allotment of shares
under the COSCO Group Employees’ Share Option
Scheme 2002.
EQUITY
Shareholder’s equity increased marginally by $32.0
million mainly due to the profits earned in 2014 and an
increase in currency translation reserve, partially offset
by the payment of dividends in May 2014.
GEARING
Total bank borrowings increased from $3.8 billion to $5.0
billion due to additional funding procured for business
operations. The Group had a gearing ratio (net of cash)
of 2.5 at the end of 2014.
EARNINGS PER SHARE
On a fully diluted basis, net earnings per share decreased
from 1.4 cents in 2013 to 0.9 cent in 2014.
DIVIDENDS PER SHARE
The Board of Directors has proposed a first and final
tax exempt one-tier dividend of 0.5 cent. The dividend
payout will amount to $11.2 million (2013: $22.4 million)
while dividend cover was 1.9.
NET ASSET VALUE PER SHARE
The net asset value per share of COSCO Corporation
increased by 2.3% from 59.7 cents per share at 31
December 2013 to 61.1 cents per share at 31 December
2014.
Operations and Financial Review
