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 May 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

CMA-CGM to Call Port of Baltimore

International container shipping company CMA-CGM of France announced that it will begin service within the next couple of weeks to the Helen Delich Bentley Port of Baltimore.

Hapag-Lloyd Expands Feeder Network in Scandinavia

Baltic Express Service (BAX) to include Oslo / Two weekly departures from Gothenburg and Helsingborg in SDX and GTE / Connection via Hamburg and Bremerhaven to

Mercury Marine Begins HQ Expansion

Mercury Marine announces 45,000 square foot EDP parts expansion to Fond du Lac global headquarters   Mercury Marine will add a 45,000 square foot expansion to

Finance

AAPA Applauds Senate Passage of Trade Promotion Legislation

The American Association of Port Authorities (AAPA) applauded Senate passage over the past weekend of the Bipartisan Congressional Trade Priorities and Accountability Act of 2015 (TPA-2015),

Port of Duluth Intermodal Project Underway

The U.S. Department of Transportation’s Maritime Administrator, Chip Jaenichen, today joined Senators Amy Klobuchar and Al Franken, Congressman Rick Nolan, Duluth Mayor Don Ness,

Chile Exporters Fret as Customs Strike Continues

A customs strike in Chile that began last week has started to affect exports and imports, although miners in the top copper producer said this week they have not yet been significantly impacted.

Container Ships

CMA-CGM to Call Port of Baltimore

International container shipping company CMA-CGM of France announced that it will begin service within the next couple of weeks to the Helen Delich Bentley Port of Baltimore.

Construction Starts on Crowley’s 2nd LNG ConRo Ship

Construction begins on Crowley’s second Commitment Class, LNG-powered ConRo ship for use in the Puerto Rico trade   Shipbuilder VT Halter Marine, Inc. has officially

Wärtsilä wins BWMS Order for 3 Vessels

Wärtsilä has received another important order for its Ballast Water Management Systems (BWMS). Three new container ships being built for a major European shipping

 
 
Maritime Standards Naval Architecture Navigation Offshore Oil Pod Propulsion Port Authority Salvage 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: 0.1860 sec (5 req/sec)