6th May 2014 11:08
LONDON (Alliance News) - Shipping company Goldenport Holdings Inc Tuesday said it narrowed its net loss in the first quarter, but saw a 16% drop in revenue, on the back of weaker demand, and a 16% drop in earnings.
"Trading during the first quarter of 2014 was weaker than in the last quarter of 2013 due to weak demand in the Far East, seasonal effects [Chinese New Year] and a weak South American grain season," Chief Executive John Dragnis said in a statement.
For the three months ended March 31, Goldenport, which owns and operates a fleet of dry bulk and container vessels, reported a 16% drop in earnings before interest, taxes, depreciation and amortisation to USD4.4 million, compared with USD5.3 million the prior year.
It reported a net loss of USD1.8 million, compared with a net loss of USD2.4 million a year earlier.
The group reported a 16% decline in revenues for the quarter, to USD12.4 million, down from USD14.8 million, reflecting a decrease in the average number of vessel, which it said was partly offset by an increase in time charter equivalent rates.
Goldenport said that dry bulk asset prices remained "broadly stable" quarter-on-quarter.
It said that in anticipation of a recovery in containership rates, it continued to employ its fleet on a short-term basis under three- to six-month time charter agreements, although it said it is starting to see increased appetite for six to 12 month time charters.
At the end of the quarter, the group agreed the sale of the 1995-built vessel MSC Socotra to an unaffiliated third party for USD11.15 million in cash, which it said took advantage of high scrap prices to continue its strategy of fleet renewal by disposing of older tonnage.
The disposal resulted in a gain of USD3.1 million, which it said will be booked in the second quarter.
Today the group's fleet consists of 14 vessels, of which seven are dry bulk carriers and seven are containers.
Shares in Goldenport Holdings were down 3% at 37.00 pence Tuesday midday.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
Copyright 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
GPRT.L