Pacific Basin in Profit Warning

Hong Kong-seated bulk shipping company Pacific Basin Shipping Limited has issued a profit warning as the company expects a net loss in the range of USD 5 to 20 million for the full year ending 31 December 2015.

This company recorded a USD 285 million net loss in the year that ended 31 December 2014.

The net loss was attributed to the effects of the current bunker prices which are not expected to have the same one-off positive effects in the second half of 2015 as it was the case in the first half of the year. In addition, the company said that the losses are also due to the uncovered vessel days in the remainder of the year.

“With all other variables held constant, if the average forward bunker rate in the bunker swap contracts increases/decreases by 10%, then the full-year mark-to-market movement would increase/decrease by approximately USD 2.7 million,” the company said.

The group continues to utilise bunker derivatives to hedge its fuel price exposure for future-dated fixed rate cargo contracts.

The audited consolidated results of the company for 2015 are expected to be announced on 29 February 2016.

“The impact of the weaker underlying spot market rates on our 2015 results is expected to be limited in view of the 93% employment cover that we had secured by the time of our third quarter 2015 trading update,” the company adds.

However, as previously indicated, the market weakness presents acquisition opportunities at depressed prices which the company used to purchase an eight year old 32,000 dwt Japanese-built Handysize log/bulk carrier at a price that is expected to generate a positive cash contribution to the business once the ship commences commercial operation in early 2016.

Image: Pacific Basin

Share this article

Follow World Maritime News

In Depth>

Events>

<< Jul 2019 >>
MTWTFSS
1 2 3 4 5 6 7
8 9 10 11 12 13 14
15 16 17 18 19 20 21
22 23 24 25 26 27 28
29 30 31 1 2 3 4

The Smart Ship Exchange

The Exchange will look at the issues involved with increasing autonomy in shipping with an introduction to the concept…

read more >

3rd MarSat Workshop

The MARSAT project wants to operationalise and standardise EO products and aims to develop…

read more >

Global Sustainable Shipping Forum 2019

The event will provide valuable insights from conference sessions, great networking opportunities and will offer…

read more >

OEE Conference & Exhibition 2019

OEE2019 is organised by Ocean Energy Europe, the industry association representing ocean energy in Europe.

read more >