18th Sep 2014 10:12
LONDON (Alliance News) - Shipping company Hellenic Carriers Ltd Thursday reported a narrowed loss for the first half of the year as it expanded its fleet, cut operating costs, and maintained high utilization rates for its fleet, and said it was positive about the outlook for the dry bulk shipping market.
The company reported a net loss of USD5.3 million for the six months to end-June, compared with a loss of USD6.8 million a year earlier, as revenue rose to USD10.4 million, from USD3.9 million. Its closely-watched earnings before interest, tax, depreciation and amortisation, which excludes and gains or losses on vessel sales, was USD0.8 million, compared with a USD0.5 million loss in the first half of 2013.
Hellenic Carriers operated 5.7 vessels on average during the half, up from 3.0 vessels a year earlier, while the expansion improved the age profile of the fleet to a weighted average of 10.4 years on June 30, from 16.0 years a year earlier.
It has been operating its ships mainly under short-term fixtures or for single time charter trips, achieving on average a gross daily rate above the average benchmark Panamax and Supramax daily rate. It achieved a time charter equivalent gross rate of USD10,914, up from USD7,735 in the first half of 2013, while cutting daily operating expenses to USD5,205, from USD5,260.
Hellenic said the market had begun to recover in the fourth quarter of 2013, but had not yet gained the momentum it expected.
"However, experience dictates that an upward trend may not always be a straight line and any rapid improvement, such as the one experienced in the latter part of 2013, may at times be followed by a downward correction," it said.
"Volatility has prevailed with constantly varying and unstable geopolitical conditions, policy changes in exporting and importing countries, fluctuating currencies and commodity prices being some of the factors, which have impacted and may continue to have an impact on the global shipping market".
Still, it thinks the market outlook is positive, as the growth in the world's dry bulk shipping fleet has been steadily decelerating since last year while demand has remained consistently string. Chinese iron ore imports are 17% up on the year, despite slowing GDP growth in the country, it said.
It said it wasn't going to pay an interim dividend, preferring to reinforce the company's liquidity and "optimize its use of cash as market opportunities arise".
Total cash, including restricted cash, amounted to USD12.7 million on June 30, down from USD27.7 million at the end of December. Restricted cash amounted to USD4.0 million, down from USD9.5 million, as it spent the USD5.3 million it got from selling the M/V Hellenic Sea vessel to partly finance the acquisition of M/V Pistis in January.
Hellenic Carriers Ltd shares were up 0.7% at 38.00 pence Thursday morning.
By Steve McGrath; [email protected]; @stevemcgrath1
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