Rickmers' Cash Flow Steady, But Profits Down in 2012

Press Release
Friday, March 01, 2013

Rickmers Trust Management's Rickmers Maritime reports 4Q and full year financial report for 2012.

Highlights:

  • Steady operating cash flow for the year at US$109.2 million
  • High operational efficiency for 4Q2012 and FY2012 with 99.8% and 98.9% fleet utilisation rate respectively
  • Kaethe C. Rickmers’ charter extended with MSC until September 2013
  • Distribution per unit of 0.60 US cents to be paid on 28 March 2013


 Charter revenue in 4Q2012 remained steady at US$36.3 million (4Q2011 at US$37.8 million). The slight decrease of US$1.5 million was due mainly to the lower daily charter rate of the vessel, Kaethe C. Rickmers. On a full year basis, revenue declined by 3% from US$149.5 million in FY2011 to US$144.3 million in FY2012.

Vessel operating expenses increased from US$8.4 million in 4Q2011 to US$8.8 million in 4Q2012 due to a contractual increase in fixed operating expenses and the vessel management fee that took effect from 1 January 2012, as well as higher lubricant oil prices, additional insurance, anti-piracy related expenses and fuel consumed during unscheduled off-hire.

An annual review on the entire fleet for impairment resulted in a provision for vessel impairment of US$4.5 million on Kaethe C. Rickmers and goodwill impairment of US$2.1 million on three wholly owned subsidiary companies.

As a result of the marginal decline in charter revenue, increase in operating expenses and one-off non-cash impairment charges to vessel values, the Trust’s net profit after tax decreased from US$11.3 million in 4Q2011 to US$2.2 million in 4Q2012.

On a full year basis, the Trust’s profit for 2012 was US$27.6 million, which is US$12.7 million lower than the profit recorded in the previous financial year.

Industry outlook:
For 2013, containership capacity growth is forecasted at 6.6%1 while global trade growth is projected to reach 6.1%1. However with a significant number of ships to be delivered in the next twelve months, and demand unlikely to absorb over-supply in 2013, no material increases in time charter rates and vessel values are expected in the short term.

The Chief Executive Officer of RTM, Mr Thomas Preben Hansen commented, “Improved industry fundamentals coupled with a possible stabilisation of the world’s major economies, may pave the way for a brighter future for container shipping. However, liner companies will have to delicately manage their tonnage supply and maintain strict freight rate discipline, if the industry is to continue its recovery in 2013.

 

Maritime Today


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

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

People & Company News

Massive Layoff Ahead for Hyundai Heavy

Another massive reduction in the Korean shipbuilding workforce may come as most shipyards are still struggling with falling orders and mounting losses, reports Yonhap quoting industry sources.

USCG Foundation Run to Remember Events Announced

The Coast Guard Foundation, a non-profit organization committed to the education and welfare of Coast Guard members and their families, announced this year’s Run

Port of Vancouver CEO Coleman to Step Down

Todd Coleman, CEO of Port of Vancouver USA, step down from his position May 19, after 15 years with the port.   Coleman, a Professional Engineer, began his career with the port in 2001,

Finance

Daewoo Shipyard Posts Q1 Operating Loss

South Korean shipbuilder Daewoo Shipbuilding & Marine Engineering Co. posted a first-quarter loss after incurring more costs to finish some offshore projects.   First-quarter

Yilport Acquires Sweden's Gavle Terminal

Turkish terminal operator Yilport Holding has gained full control of Gävle’s terminals.   Yilport Holding acquired 100% shares of Gävle Container Terminal (GCT) and Baltic Sea Gateway (BSG).

USCG Foundation Run to Remember Events Announced

The Coast Guard Foundation, a non-profit organization committed to the education and welfare of Coast Guard members and their families, announced this year’s Run

Container Ships

Port of Oakland Boosts Night, Weekend Work

Subsidy extended, largest marine terminal adds functions to night gates   A $1.5 million subsidy program to stimulate night and weekend business at the Port of Oakland has been extended.

FMC Chairman Applauds USCG Statement on Container Weights

Federal Maritime Commission (FMC) Chairman Mario Cordero commended the Coast Guard for issuing a bulletin last week regarding container weights that he hopes allows

Diana Containerships, MSC Enter Time Charter Deal

Diana Containerships Inc. announced that, through a separate wholly-owned subsidiary, it entered into a time charter contract with MSC-Mediterranean Shipping Co.

 
 
Maritime Careers / Shipboard Positions Naval Architecture Navigation Offshore Oil Port Authority Salvage Ship Repair Ship Simulators Sonar Winch
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: 0.2298 sec (4 req/sec)