Thai owner seeing the positives as first quarter turns profitable.
May 4th, 2018 07:58 GMT
by Gary Dixon
Published in DRY CARGO

20180507

Thai owner Precious Shipping says bulkers are now firmly off life-support after a first-quarter improvement in earnings.
Net profit to 31 March was $3.43m, from a loss of $1.74m a year ago.
Daily ship earnings came in at $10,965, 28% higher than in 2017.
Revenue was up at THB 1.09bn ($34.42m) from THB 1.06bn, while costs dropped to THB 795m from THB 905m.


Precious Shipping reports first quarterly profit since 2014. Daily operating expenditure was $4,482, marginally lower than its target of $4,500.

Managing director Khalid Hashim said: “When we look back at 2017, it was a year that started with the industry being on life-support and by the end of the year the patient was fighting fit and profitable in most cases.”
He cited Clarksons figures for ton-mile demand growth during 2017 as averaging 5.1%, versus a net increase in tonnage supply of 2.93%.
“This confirms our opinion that the dry bulk supply-demand equation is very close to balance,” Hashim added.
“The prognosis for ton-mile demand growth in 2018 seems to have improved since the start of the year with Clarksons having revised their estimates upward from 3.5% to 3.8%.
“At the same time, we remain reasonably confident that net growth in tonnage supply will not exceed 2% this year.”
He said the company expects a similar favourable demand-supply gap outcome for 2019.