Rickmers Maritime Q1 2014 Profit Slips a Little YoY

Posted by George Backwell
Monday, May 05, 2014
Shareholders' ship visit: Photo Rickmers Maritime

Container ship owners & charterers out Rickmers Maritime describe a stable set of results in the first quarter of 2014. Charter revenue decreased slightly by 4% from the US$35.5 million reported for the first quarter ended 31 March 2013 to US$33.9 million, largely due to the redelivery of two vessels during the period.

In the lead up to their new charters to Maersk Line, the two vessels, Henry Rickmers (formerly Ital Fastosa) and Richard Rickmers (formerly Ital Festosa) spent 19.7 days and 31.3 days respectively as at 31, March 2014 for preparation and positioning.

In addition, the fleet incurred a total of 31.1 days of unscheduled off-hire, with Kaethe C. Rickmers incurring 20.0 days of off-hire due to engine problems. As a result, fleet utilisation for 1Q2014 fell to 94.3%.

Vessel operating expenses increased by 13% to US$9.9 million in 1Q2014 from US$8.8 million in 1Q2013. A considerable percentage of this increase was due to bunker fuel consumed for Henry Rickmers’ and Richard Rickmers’ positioning voyages to their new charterer and certain expenses incurred due to Kaethe C. Rickmers’ engine problems.

Finance expenses, however, were reduced from US$7.0 million in 1Q2013 to US$5.5 million in 1Q2014 as a result of reduced outstanding loan balances and the expiry of interest rate swap contracts. Overall, Rickmers Maritime recorded a net profit after tax of US$9.8 million in 1Q2014, compared to US$10.7 million in 1Q2013.

Dividend
Maintaining a distribution per unit of 0.6 US cents for 1Q 2014, the Trust will distribute US$5.1 million to unitholders. The declared distribution will be paid to unitholders on 4 June 2014.

Outlook
Mr Thomas Preben Hansen, the Chief Executive Officer of RTM, commented, “Whilst the charter market remains under pressure as a result of the persistent over-supply of container ships in the market, Rickmers Maritime’s performance has been consistent due to its existing charter agreements
with reputable counter parties."

"As a result of our recent chartering activities, we have succeeded in locking in 98% of our tonnage exposure for 2014, bringing our secured revenue between 31 March 2014 and the expiry of our last charter party contract in 2019 to a total of US$311.3 million. With a number of our existing charter agreements expiring during 4Q 2014 and 2015, the uncertainty surrounding the timing of a charter market recovery poses a risk to the earnings and cash flows of the Trust. To this end, we will continue our chartering activities to ensure the best possible future employment for our fleet of quality vessels.”

About the Company
Managed by Rickmers Trust Management Pte. Ltd., Rickmers Maritime is a Singapore business trust formed to own and operate containerships mainly under long-term, fixed-rate time charters to leading container liner companies including CMA CGM, Hanjin Shipping Co. Ltd., Italia Marittima S.p.A., Maersk Line, Mediterranean Shipping Company S.A. and Mitsui O.S.K. Lines Ltd. Its objectives are to offer first class services to its customers, generate stable and growing cash flows and maximise value for its unitholders.
 

Maritime Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter June 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Xeneta: No Silver Lining for Container Shipping in Brexit Storm

Xeneta, a  global benchmarking and market intelligence platform for containerized ocean freight, believes that the UK’s decision to leave the European Union will

PALFINGER Finalizes Harding Acquisition

The PALFINGER Group closed the acquisition of 100 percent of the shares in Herkules Harding Holding AS, i.e. the globally operating Harding Group, supplier of lifesaving

ClassNK Amends IGC Code Rules and Guidance

Classification society ClassNK has amended its Rules and Guidance for the Survey and Construction of Steel Ships in response to the latest industry developments,

Contracts

Norsafe Secures Contract with VARD Group

Norsafe informs it has signed a new contract with VARD Group, and will supply lifeboats complete with davit systems to a series of 15 new vessels.    Topaz Energy

IOMAXIS Awarded $245 Mln Contract to Support NRL

Contract will allow IOMAXIS to provide research, development and technical support to initiatives at the Naval Research Lab   IOMAXIS, provider of technologies

Demand, Bunker Pricing Spurs Asia Dry Bulk-Capesize Rates

Owners asking $1 per tonne more on Australia-China rates; Panamax rates climb to two-month high, but remain under pressure. Freight rates for large capesize

Finance

Baltic Index Rises on Increased Demand Across Segments

The Baltic Exchange's main sea freight index, tracking rates for ships carrying dry bulk commodities, rose on Thursday on higher demand across all vessel segments.

PALFINGER Finalizes Harding Acquisition

The PALFINGER Group closed the acquisition of 100 percent of the shares in Herkules Harding Holding AS, i.e. the globally operating Harding Group, supplier of lifesaving

Beijing Slams South China Sea Court Proceedings

Permanent Court of Arbitration ruling set for July 12. An international court said it would deliver a hotly anticipated ruling in the Philippines' case against

Container Ships

Xeneta: No Silver Lining for Container Shipping in Brexit Storm

Xeneta, a  global benchmarking and market intelligence platform for containerized ocean freight, believes that the UK’s decision to leave the European Union will

SOLAS Container Mass Verification Rule Enter into force

A new regulation requiring the gross mass of a container to be verified before it is loaded onto a ship enters into force today (1 July 2016). It will assist in

UASC Shareholding States Vote to Back Hapag-Lloyd Merger

United Arab Shipping Company (UASC) said its six shareholding states backed a merger deal with German container shipping line Hapag-Lloyd AG at a meeting on Wednesday.

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Naval Architecture Offshore Oil Pod Propulsion Port Authority Ship Repair Ship Simulators Sonar
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1227 sec (8 req/sec)