Norwegian shipowner and operator Belships made a Q3 operating profit of amounted to US$2.4m, compared to US$1.3m in the same quarter last year. The company says the improved results are to the operations of its own ship, the Belnor, and Elkem Chartering's handysize operations.Operating profit for the first nine months of the year was US$5.1m against US$6.5m in the same period last year.The company notes that the dry bulk market continued to strengthen throughout the quarter, and the rates reached the highest level since early in 2005. Once more, one of the main factors for this was the vigorous growth in the China steel industry, but generally good economic conditions also contributed. Belships says: “Elkem Chartering chartered in vessels early in the summer for medium term periods at rates that are producing good results in the handysize operations, but freight contracts entered into previously naturally pull the results down.”
Looking ahead Belships says: “The dry bulk market has continued to improve in the fourth quarter, and even though there are signs that may indicate a slow-down in economic activity in the USA, we expect the market to remain strong for the rest of the year. Handysize operations in Elkem Chartering are expected to continue generating positive contributions. The freight portfolio is continually being developed and will form a basis for expansion. The Pax Phoenix charter has been extended until the end of 2008 at a rate that will yield a contribution to Belships of around USD 2 million a year. Three years have now passed since the upswing in rates began in earnest, and this is the longest period with high dry bulk rates in modern times. The inflow of new buildings will decline in the coming three years, and if the increase in demand should last, the prospects are promising.”