Pacific Basin’s Loss Up Despite Stronger TCE Earnings

Image Courtesy: Pacific Basin

Due to extraordinarily weak dry bulk market conditions seen in the first half of 2016, the Hong Kong-listed dry bulk shipping company Pacific Basin Shipping reported a net loss of USD 60.4 million, against a net loss of USD 15.4 million seen a year earlier, despite its strong TCE earnings premium.

“While we were loss-making over this challenging period, our Handysize and Supramax earnings outperformed spot market rates by 56% and 29% respectively and we generated a positive operating cash flow,” Mats Berglund, CEO of Pacific Basin, said.

The company’s said that its recent rights issue enhances its ability to navigate the protracted challenging environment, but also the ability to attract cargo and to assess and potentially purchase secondhand vessels at low prices.

Average Handysize and Supramax daily earnings of USD 6,080 and USD 5,910 per day outperformed BHSI and BSI spot market indices by 56% and 29%, respectively.

The sluggish dry bulk shipping market led to the reduction of the company’s daily Handysize vessel operating costs and shore-side G&A expenses compared to last year as Pacific Basin Shipping operated an average of 129 Handysize and 79 Supramax ships resulting in a 13% reduction and 39% increase in revenue days year on year.

Driven primarily by South American agricultural exports, dry bulk rates have improved on increasing activity since the record lows of mid-February, the company said, adding that it is “continuing to manage for a weak market in the medium term, driving further cost savings and conducting our business efficiently and safely while astutely combining ships and cargoes to maximise our margins.”

As at 30 June 2016, Pacific Basin Shipping operates 212 dry bulk ships of which 87 are owned and 125 are chartered. A further 12 owned and 5 chartered newbuildings are scheduled to join the company’s core fleet over the next two years.

Share this article

Follow World Maritime News

In Depth>

Events>

<< Nov 2017 >>
MTWTFSS
30 31 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 1 2 3

Maritime Information Warfare 2017

Maritime Information Warfare will focus on the growing need for navies to develop their information exploitation capabilities…

read more >

INTERNATIONAL GREEN SHIPPING AND TECHNOLOGY SUMMIT

The Summit will gather key marine experts and companies around the globe which have a big influence in the industry…

read more >

The CWC 18th Annual World LNG Summit & Awards Evening

The CWC World LNG Summit will continue to give you access to premium networking opportunities as it brings together the who’s who…

read more >

Marintec China 2017

The largest maritime event in Asia Pacific, Marintec China connects maritime professionals from the entire shipbuilding supply chain together.

Over the years, Marintec China has grown to reflect the size and importance of the Asian maritime market. 2015 event is another record-breaking edition with the largest exhibition area and the highest number of industry professionals attending ever. The encouraging figures proven that China remains one of the major shipbuilding nations and Marintec China has been the most authoritative platform in Asia.

With the maritime industry facing great opportunities but also many challenges, it is important for the industry to connect and engage more to ultimately win new business in globally-significant markets. A visit to Marintec China is a great way to learn about the latest technology and innovation of the supply industry, a platform for industry professional to meet face to face, make connection and do business.

Marintec China is poised to be the definitive event and is undoubtedly a must-attend for all involved in the maritime industry.

Marintec China will be held from 5 to 8 December 2017 at the Shanghai New International Expo Centre in Shanghai, China and continue its dedication to serve as the “LEADING” platform “CONNECTING” the community and “STRENGTHENING” the maritime industry.

Marintec China offers the perfect opportunity for companies serving the maritime market to showcase their innovations, products and services to a wide audience. A platform for face to face meetings in business, creating new relationships and consolidating existing ones.

More info

read more >