Supported by an improvement in the dry bulk shipping market, Hong Kong-based Jinhui Shipping and Transportation managed to cut its net loss in the first half of 2017.
The company’s net loss for the first half of 2017 shrunk to USD 8.7 million, against a net loss of USD 39.1 million seen a year earlier.
Revenue for the first half of 2017 increased 37% to USD 34.3 million, comparing to USD 25 million reported in the same period in 2016.
During the first half of the year the company entered into five memorandums of agreement to dispose of four Supramaxes and one Handysize at a total consideration of USD 63 million. By using the net sale proceeds arisen from the disposals for the repayment of the vessel mortgage loans, the group’s overall indebtness had been reduced by around USD 52.3 million.
The company’s net loss for the three-month period ended June 30, 2017 stood at USD 784 thousand, compared to a net loss of USD 20.6 million reported in the corresponding period in 2016.
Revenue for the second quarter of 2017 increased 26% to USD 18.9 million from USD 15 million seen in the same quarter a year earlier.
Dry bulk shipping market has been improving since February 2017 on the back of rising dry seaborne trade volumes which were stimulated by both increasing agriculture products and coal trading activities. Despite the softening of freight rates in May and June 2017, the average of Baltic Dry Index of the second quarter of 2017 was 1,006 points, compared to 610 points in the same quarter in 2016.
As of the end of August 2017, the group had twenty three owned vessels which included 2 modern Post- Panamaxes and 21 modern grabs fitted Supramaxes.