KUALA LUMPUR: Malaysian Bulk Carriers Bhd’s (Maybulk) net profit fell 99% to RM371,000 for 3QFY11 ended Sept 30, from RM87.75 million a year earlier.
Revenue declined 60% to RM44.4 million compared with RM109 million a year earlier. Basic earnings per share for the quarter fell to 0.04 sen versus 8.77 sen a year earlier.
While Maybulk, a major player in the shipping sector operating mainly in the transport of dry bulk cargo and tankers, is confident of remaining profitable for FY11. It said the shipping market will remain weak in 4QFY11. The group is also expected to report lower earnings for FY12.
For 9MFY11 ended September, Maybulk’s net profit was 56% lower at RM74.9 million compared with RM170.67 million a year earlier. The group’s revenue declined 38% to RM198.9 million from RM319.5 million.
In its filing with Bursa Malaysia, Maybulk said charter rates continued to fall in 3QFY11, coupled with lower hire days from the charter-in segment. As such, the group posted an operating loss of RM13.43 million compared to RM79.8 million profit a year earlier. The group also experienced a foreign exchange loss of RM18.1 million in 3QFY11, which contributed to its operating loss.
However, it noted that its associate POSH Group and jointly controlled entity Progress Shipping Pte Ltd contributed better earnings, keeping the group in the black for 3QFY11.
For the 9MFY11 period, Maybulk attributed the declining revenue to a 35% fall in charter rates for the dry bulk segment and reduced revenue days from the tanker segment.
It said the Baltic Dry Index’s average of 1,428 points for 9MFY11 is a 51% decline against the comparative average of 2,885 points in 2010.
“Against the backdrop of the weak dry bulk sector, the group’s charter rates for our dry bulk carriers declined by 35% to US$17,491 [RM55,621] per day, compared with US$26,908 per day for the same period last year,” it said.
It added that the Baltic Clean Tanker Index (BCTI) remained flat from 2010 into the third quarter this year, which was reflected in its tanker revenue.
“Our tankers’ average rate for 9MFY11 was US$12,257 per day, compared with US$12,315 per day for the same period last year,” it said. It added that its tanker segment revenue was lower due to the disposal of a tanker in February and the scheduled dockings of three tankers.
On its outlook, Maybulk said the International Monetary Fund (IMF) had revised downwards projection for the growth rate for world trade volumes to 7.5% for 2011 and 5.8% in 2012.
“Concurrently, Clarkson Research projected the total dry bulk trade to grow by only 4% in 2012 (down from 6% in 2011). Both of these forecasts do not bode well for the shipping industry,” it said, adding that the problems in the European Union would likely further dampen 2012 prospects.
“The tanker market is not expected to change significantly in the coming months due to continuing new-build tanker deliveries and overcapacity. According to a recent report from the Baltic and International Maritime Council, the tanker fleet will grow by up to 7.6% in 2011, adding continued supply pressure on the market,” it said.
Maybulk added two new handysize vessels to its fleet this year and is expected to take delivery of another in December.
It added that while the shipping market will remain weak in 4QFY11, the group is confident of remaining profitable for FY11.
“Going forward, the board is of the view that the coming year will be challenging, and consequently 2012 results will be much lower,” it said.
Maybulk fell two sen to close at RM1.66 yesterday with 303,100 shares done.
This article appeared in The Edge Financial Daily, November 24, 2011.
Revenue declined 60% to RM44.4 million compared with RM109 million a year earlier. Basic earnings per share for the quarter fell to 0.04 sen versus 8.77 sen a year earlier.
While Maybulk, a major player in the shipping sector operating mainly in the transport of dry bulk cargo and tankers, is confident of remaining profitable for FY11. It said the shipping market will remain weak in 4QFY11. The group is also expected to report lower earnings for FY12.
For 9MFY11 ended September, Maybulk’s net profit was 56% lower at RM74.9 million compared with RM170.67 million a year earlier. The group’s revenue declined 38% to RM198.9 million from RM319.5 million.
In its filing with Bursa Malaysia, Maybulk said charter rates continued to fall in 3QFY11, coupled with lower hire days from the charter-in segment. As such, the group posted an operating loss of RM13.43 million compared to RM79.8 million profit a year earlier. The group also experienced a foreign exchange loss of RM18.1 million in 3QFY11, which contributed to its operating loss.
However, it noted that its associate POSH Group and jointly controlled entity Progress Shipping Pte Ltd contributed better earnings, keeping the group in the black for 3QFY11.
For the 9MFY11 period, Maybulk attributed the declining revenue to a 35% fall in charter rates for the dry bulk segment and reduced revenue days from the tanker segment.
It said the Baltic Dry Index’s average of 1,428 points for 9MFY11 is a 51% decline against the comparative average of 2,885 points in 2010.
“Against the backdrop of the weak dry bulk sector, the group’s charter rates for our dry bulk carriers declined by 35% to US$17,491 [RM55,621] per day, compared with US$26,908 per day for the same period last year,” it said.
It added that the Baltic Clean Tanker Index (BCTI) remained flat from 2010 into the third quarter this year, which was reflected in its tanker revenue.
“Our tankers’ average rate for 9MFY11 was US$12,257 per day, compared with US$12,315 per day for the same period last year,” it said. It added that its tanker segment revenue was lower due to the disposal of a tanker in February and the scheduled dockings of three tankers.
On its outlook, Maybulk said the International Monetary Fund (IMF) had revised downwards projection for the growth rate for world trade volumes to 7.5% for 2011 and 5.8% in 2012.
“Concurrently, Clarkson Research projected the total dry bulk trade to grow by only 4% in 2012 (down from 6% in 2011). Both of these forecasts do not bode well for the shipping industry,” it said, adding that the problems in the European Union would likely further dampen 2012 prospects.
“The tanker market is not expected to change significantly in the coming months due to continuing new-build tanker deliveries and overcapacity. According to a recent report from the Baltic and International Maritime Council, the tanker fleet will grow by up to 7.6% in 2011, adding continued supply pressure on the market,” it said.
Maybulk added two new handysize vessels to its fleet this year and is expected to take delivery of another in December.
It added that while the shipping market will remain weak in 4QFY11, the group is confident of remaining profitable for FY11.
“Going forward, the board is of the view that the coming year will be challenging, and consequently 2012 results will be much lower,” it said.
Maybulk fell two sen to close at RM1.66 yesterday with 303,100 shares done.
This article appeared in The Edge Financial Daily, November 24, 2011.
