Singapore-based bulker owner Grindrod Shipping has seen earnings decline as it prepares to be taken over by Taylor Maritime Investments (TMI). The US-listed company said net profit in the quarter was down at $22.1m from $49.3m a year ago. Interim chief executive Stephen Griffiths, who is also the chief financial officer, said results were quite strong overall, but lower than in the second quarter as charter rates fell continuously.

“While supply fundamentals have remained intact with a low orderbook persisting due to uncertainty surrounding new engine technology and emissions controls, trade demand appears to have softened so far this year,” he added. Griffiths said in the first half of the year, minor bulks were the only major category of cargoes to remain positive from a growth perspective, but they too contracted in the third quarter. “Our vessels continued to outperform the larger dry bulk vessel classes during the quarter and year-to-date periods, and have delivered robust free cash flows for the company, further strengthening our balance sheet,” the interim boss added.

Handysizes achieved time charter equivalent earnings (TCE) of $23,257 per day, with supramaxes and ultramaxes at $25,645. So far in the final three months, handysizes have averaged $15,688 per day. Supramaxes and ultramaxes have managed $22,850 per day.

Revenue sank to $107m from $135m in the third quarter. There was a reduction in short-term operating days due to the redelivery of ships that were chartered in during a weaker market. These deals were not extended due to the reduced demand for dry bulk tonnage brought about by global recession, high interest rates and continued shutdowns in China, Grindrod said.

Ed Buttery-led TMI is paying $26 per share for Nasdaq-listed Grindrod in a deal valuing the target at $494m. Grindrod does not intend to declare any further dividends for 2022 prior to the takeover.