Precious Makes Its First Quarterly Profit For The First Time In Three Years

- Feb 11, 2018 -

Precious Shipping, owner of a Thai-listed bulk carrier, announced that it has achieved its first quarterly net profit since the second quarter of 2014 in the fourth quarter of 2017.

 

The company said it benefited from the market recovery, the company in the fourth quarter of 2017 net profit of 332 million.

 

However, for the full year 2017, the company is still at a loss, with a loss of $ 3.76 million. Excluding unconventional project losses, the company posted a net loss of $ 1.13 million in 2017, a significant loss from the $ 37.4 million loss of the previous year.

 

Precious Shipping completed a 5-year fleet rejuvenation program in December 2017. The company currently operates 36 vessels, including eight super handymax bulk carriers, nine superhuman bulk carriers and 19 handymax bulk carriers with a total capacity of 1.58 million dwt and a fleet average age of 6.3 year.

 

The Company believes that due to the improvement in the balance of ship's supply and demand balance, the freight rate for the bulk shipping market is expected to continue to improve in 2018. The company expects a 1% net increase in fleet capacity in 2018 and 2019, while the demand for bulk transportation is expected to increase by 4-4.5% over the two years, a growth that is close to the increase in demand in 2017.

 

Precious Shipping said the current growth rate of the fleet and the new ship orders accounted for the world's fleet as the lowest rate since 2000. Due to the age distribution and regulatory pressure of the existing fleet, it is estimated that the global bulk carrier market will have a healthy level of shipbreaking in 2018-2020.

 

The company pointed out that because of a very tight supply-demand balance, the recovery is characterized by a sharp wave of volatility due to a disproportionate impact on BDI due to any minor changes in demand or supply side.

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