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 Reporter July 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

RS to Exhibit at SMM 2014

Russian Maritime Register of Shipping (RS) announced it will exhibit at Shipbuilding, Machinery and Marine Technology (SMM) International Trade Fair September 9-12, 2014 in Hamburg, Germany.

Green Marine, ACPA Partner to Reduce Environmental Footprint

Green Marine and the Association of Canadian Port Authorities (ACPA) have entered into a Memorandum of Understanding with the goal of jointly expanding efforts

SC Ports’ Earnings, Volumes Surpass Plans

July cargo volumes deliver strong start to new fiscal year SC Ports Authority reported 2014 fiscal year-end operating earnings of $14.3 million, 20.7 percent over the organization's financial plan.

Finance

SC Ports’ Earnings, Volumes Surpass Plans

July cargo volumes deliver strong start to new fiscal year SC Ports Authority reported 2014 fiscal year-end operating earnings of $14.3 million, 20.7 percent over the organization's financial plan.

GoM Sale Yields $110m in High Bids

As part of President Obama’s all-of-the-above energy strategy to continue to expand safe and responsible domestic energy production, today’s Western Gulf of Mexico Lease Sale 238 attracted $109,

Traders Store Crude for Profit as Contango Takes Hold

Oil traders have begun fixing tankers to take North Sea, West African and Arab crudes to South Africa for storage, hoping for a repeat of the multimillion dollar bonanza they reaped in 2008-2009.

Container Ships

Containership Cleared of Ebola Risk

Containership Hammonia Pacificum has been cleared of Ebola risk at the Port of Ricahrd Bay after being stopped previously at several West African ports, according

VSTEP Delivers FMB Simulator to Danaos

Danaos Corporation purchased a NAUTIS DNV Class A FMB Simulator and Instructor Station for training of its fleet members.  The simulator will be delivered and installed

Doosan Delivers a ‘World’s First’ to NASSCO

Doosan Engine has confirmed delivery of the world’s first dual-fuel, low-speed ME-GI engine to the American National Steel and Shipbuilding Company (NASSCO) shipyard in San Diego, USA.

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Pod Propulsion Port Authority Ship Electronics Ship Repair Ship Simulators Shipbuilding / Vessel Construction Sonar
rss | archive | history | articles | privacy | terms and conditions | 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: 0.1316 sec (8 req/sec)