Singapore-based Rickmers Trust Management (RTM), a trustee manager of Rickmers Maritime, said that the company recorded a net loss of USD 55.6 million in the second quarter of this year, compared to a loss of USD 15.7 million in the same period last year, a change of 255%.
Rickmers Maritime reported lower charter revenue of USD 18 million for the second quarter of this year, compared to USD 28.5 million during the same period last year, due to reduced charter rates and a lower vessel utilization rate amid a worsened charter market.
The company’s net loss for the first half of this year was USD 56.9 million, compared to USD 8.6 million during the first six months of last year. Additionally, charter revenue in the six-month period this year was USD 39.3 million, compared to USD 57.1 million in the first half of 2015.
Rickmers Maritime’s vessel operating expenses increased by 5% year-on-year to USD 10.2 million, mainly due to higher bunker consumption from vessel repositioning between charters, off-hire, and increased vessel idle time.
The company further said it continues to be in discussions with lenders to refinance bank debt in order to ensure long-term solvency. For the outstanding bank borrowings of USD 179.7 million, maturing on March 31, 2017, Rickmers Maritime has obtained a standstill from the lenders to defer principal repayments to August 31, 2016, while negotiations are ongoing.
“The restructuring process is fairly complex and made more difficult by current market conditions. Nevertheless, we remain focused on securing a unified single credit facility that is sustainable and that gives the trust greater flexibility and a longer runway to manage its liabilities and growth. This will enable us to address the USD 100 million three-year notes, maturing on May 15, 2017,” Tomas Norton de Matos, Chief Financial Officer of RTM, commented.
Rickmers Maritime said that the next 12 months are expected to remain challenging as pressure on charter rates and decreased utilization continues to weight on the company’s financial performance.