Maybulk Q4 profit hit by lower freight rates, higher operating cost

Malaysian Bulk Carriers Bhd (Maybulk)'s net profit for the fourth quarter ended Dec 31, 2012 was slashed by almost half to RM17.1mil from RM33.1mil a year ago due to the weak dry-bulk shipping environment.
Dry-bulk shipping, which contributed 78% of the company's revenue last year, suffered lower freight rates and higher operating cost.
Revenue for the quarter stood at RM61mil against RM63.8mil a year ago.
For the full year, the country's leading dry-bulk shipping company's net profit also plunged to RM66mil compared with RM108mil in 2011.
Meanwhile, its revenue was recorded at RM262.3mil from RM363.9mil a year ago.
According to chief executive Kuok Khoon Kuan the poor dry-bulk market had not caught them by surprise.
“We are quite fortunate to still be profitable as some other shipping companies are in the red,” he said at the company's financial results briefing yesterday.
The time charter equivalent (TCE) per day for 2012 averaged at US$9,530 compared to US$16,519 in 2011. Maybulk dry-bulk segment recorded a loss of RM9.5mil in 2012 compared to a profit of RM75.3mil in 2011.
“We have divested some of our ships during the peak cycle and now we are waiting to invest in new vessels if opportunity arises.
“New modern vessels translate into lower operating cost due to their enhanced efficiency,” said Kuok.
Kuok said the group has contracted for two new Supramax vessels due for delivery in 2015 and 2016.
“We have improved our fleet portfolio from the average age of 8.8 years in 2011 to 6.2 years in 2012.
“In this weak market, it is not how much you can earn but also how much a company can do to lower its operating cost,” he said.
Source: The Star