Singapore Shipping Corp projects $2m income decline in FY14

Singapore Shipping Corporation (SSC) has projected a $2m decline in income in the new 2014 financial year from vessel off-hire, but remains confident it will remain in the black.
SSC revealed that two of its car carriers, Sirius Leader and Boheme, will go into drydocking in the new financial year, leading to a decline in income of approximately $1m.
Another vessel Singa Ace is reaching the end of its long term charter and useful life at the end of 2013, leading to a reduction in income of another $1m, as the company has commenced deliberations on either scrapping or other options for the vessel.
“With the timely acquisition of the agency and logistics businesses, the income from this source will more than compensate for the two negative variances in financial year ending 31 March 2014,” SSC said.
Meanwhile Singapore-listed SSC improved its full year results with a 12.2% rise in net profit over the previous year.
The company posted profit for the year ended 31 March 2013 of $6.81m compared to $6.07m in 2012. Revenue for the year inched up 1% to $19.91m.
SSC noted that the global shipping business remains depressed with the majority of shipowners continuing to suffer losses. “Fortunately, our strategy has stood us in good stead and we will remain profitable,” SSC said.
Source: Seatrade Global