8th Apr 2015 08:49
LONDON (Alliance News) - Hellenic Carriers Ltd Wednesday expressed cautious optimism on its longer-term market prospects, as it posted a widened pretax loss for 2014 due to increased impairment and operating costs, although revenue grew strongly despite challenging market conditions.
Hellenic operates a fleet of dry bulk vessels that transport iron ore, coal, grain, steel products, cement, alumina and other dry bulk cargoes.
It posted a loss of USD17.0 million for 2014, widened from a loss of USD14.2 million in 2013, despite seeing revenue rise to USD20.6 million from USD10.9 million, mostly as a result of a jump in vessel operating expenses, and higher depreciation and impairment charges.
The company attributed the rise in revenue to an increased number of vessels in operation and higher dry bulk freight rates during 2014.
However, the higher number of vessels also contributed to higher vessel operating expenses and voyage expenses.
The impairment charge related to the M/V Hellenic Horizon vessel, which has less than 6 years remaining of useful life as of the end of 2014, Hellenic said.
Hellenic said that during the year the dry bulk freight market had not performed as strongly as initially anticipated, and came under pressure due to reduced coal shipments into China and Europe, a ban on Indonesian exports of minor metal ores, and disruption in grain shipments out of South America.
It said that whilst the timing of market recovery is "yet unclear", it noted that the pace of ordering new vessels has slowed, and scrapping has picked up, which it believes means the supply side is expected to improve from 2016 onwards.
"Given that we do not anticipate a slowdown in the world economy, we remain cautiously optimistic in respect of the longer-term prospects of the market," said Chief Executive Officer Fotini Karamanli in a statement.
Shares in Hellenic are untraded Wednesday; it last closed at 15.00 pence.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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