Jinhui Shipping Sees Bumpy Road to Recovery

Oslo-listed dry bulker Jinhui Shipping sees a bumpy road ahead despite signs of a recovery in the dry bulk market.

 

The road to recovery will be challenging and the market will remain volatile, vice president Raymond Ching told the Q1 conference call on Monday.

 

"To be honest it's very hard to pin down what will happen, this industry has been characterized by high volatility," Ching said.

 

"We hope the worst is behind us but we will continue to be very careful going forward."

 

"We will refrain from being overexcited when market recovers."

 

Q1 net loss $8 mln includes a non-cash impairment on disposed vessels of $6 million vs net loss of $18 mln in Q1 2016.

 

Q1 average daily timecharter $5,925 per vessel vs $2,934 in Q1 2016.

 

Ching say in Q1 2017 the activity was more than doubled out of Asia, excluding China, compared to Q1 2016, and adds "that is very encouraging for us."

 

Jinhui Shipping owns two modern post-panamaxes of size of 93,000 dwt, 25 supramaxes of 50,000 dwt to 61,000 dwt (including four supramaxes which were contracted to be disposed of, and which will be delivered to the purchasers before Q2 2017), and one handysize of 38,000 dwt.

 

Ching says as of now the company has no immediate plan to sell any further vessels.

 

Q1 average daily costs on the vessels, including running costs, depreciation and finance costs, was $5,882 per vessel vs $6,727 in Q1 2016.

 

The compny will continue to squeeze out costs but will not give any financial guidance going forward.


(Reporting By Ole Petter Skonnord, editing by Terje Solsvik)