CMB reports third quarter results

CMB’s executive committee has reviewed the results recorded for the third quarter 2013.
The third quarter consolidated result amounts to USD 13.888.000 (2012: USD 11.766.000),
bringing the consolidated result for the first nine months of 2013 to a total of USD 36.676.000
(2012: USD 103.814.000).

Bocimar contributes USD 5.375.000 (2012: USD 7.496.000) to the third quarter consolidated
result.  This contribution includes a capital gain, amounting to USD 1.467.000 realised on the
sale of the Mineral Sines (2002:172.316 dwt).
 
After a disappointing first half of 2013 with all dry bulk segments showing freight rates that
barely covered operating costs, the first signs of a revival were seen in the third quarter,
especially in the Capesize segment.  Capesize spot rates increased from USD 15.000/day early July to more than USD 40.000/day by the end of September.  Moreover the strengthening of the Capesize spot market has also had a positive effect on the other segments, be it with a certain delay.
 
Taking into account Bocimar’s considerable spot exposure there is an immediate effect on the
results, which is already measurable in the third quarter results and will be even more noticeable in the fourth quarter.  Hence Bocimar expects a strong fourth quarter.

The outlook for 2014 and 2015 looks promising.
The newbuilding capacity and planned newbuilding deliveries for the next two years are known and are the lowest for five years.  Bocimar expects that the forecast growth in seaborne trade mainly from iron ore will persist and have a positive effect on the dry bulk market.  The expected growth of world seaborne trade of other commodities bodes well for the Handysize segment.  It is expected that the global Handysize fleet will barely expand in the coming two years.
Bocimar is well positioned in both segments to take full advantage of improving freight rates,
taking into account its spot exposure. 

 
Source: CMB