Indian-owned dry bulk shipping company Mercator Lines (Singapore) Limited widened its losses in the first quarter of its current financial year, driven mostly by a near 50 per cent drop in revenue compared to the same period a year earlier.
The revenue for Q1 FY 2016 was at USD 8.5 million as compared to USD 16.5 million in Q1 FY 2015.
Mercator Singapore reported a net loss of USD 9.9 million for the quarter as against a loss of USD 7.1 million in the corresponding period previous year.
The company attributed the loss to volatile dry bulk shipping industry, with the Baltic Dry Index (BDI) closing at 800 points as on June 30, 2015, as compared to 596 points as on April 1, 2015.
The BDI has recovered to 1,118 points on July 22, 2015, after dropping to an unprecedented low level of 509 on February 18, 2015. The market rate for Panamax vessels closed at a rate of USD 6,734 per day as on June 30 as compared to USD 4,762 as on April 01. The average market rate for Panamax vessels for Q1 FY 2016 was USD 5,189 per day as against USD 6,304 in the corresponding period previous year.
”The Company continued to outperform the Baltic Panamax Index rates. We are seeing some early signs of recovery in the industry and would carefully monitor the markets to take advantage of the recent spike,” said Shalabh Mittal, Managing Director and CEO of Mercator Singapore.
Mercator operates a fleet of thirteen dry bulk vessels, twelve owned and one chartered-in, with an aggregate capacity of about 1 million dwt as on June 30, 2015. The average age of Mercator’s fleet is about 11 years.