The weak dry bulk shipping market has put pressure on the bottomline of Jinhui Holdings as it posted lower net profit in the first-half, Seatrade Asia online reports. The Hong Kong-listed firm registered first-half net profit of $55m compared to $76.4m in the corresponding period of 2010.
In the second-quarter, net profit plunged to $19.3m compared to $42.2m in the same quarter of last year.
“The drop in net profit was principally due to the recognition of provision for loss on charter hire of $15,009,000 in the second-quarter,” Jinhui said.
Revenue in the first-half stood at $170m compared to $165.5m a year ago.
“The first-half of 2011 had been a tough period for dry bulk shipping market,” Jinhui said. “Whilst the sovereign debt issues of the US and various European countries brought uncertainty of sustainability of global economy recovery, the dry bulk market became more vulnerable to the oversupply threats and depressing demand.”
The company added that an average of three newbuildings being delivered worldwide on a daily basis will further accelerate the oversupply situation.
In the second-quarter, net profit plunged to $19.3m compared to $42.2m in the same quarter of last year.
“The drop in net profit was principally due to the recognition of provision for loss on charter hire of $15,009,000 in the second-quarter,” Jinhui said.
Revenue in the first-half stood at $170m compared to $165.5m a year ago.
“The first-half of 2011 had been a tough period for dry bulk shipping market,” Jinhui said. “Whilst the sovereign debt issues of the US and various European countries brought uncertainty of sustainability of global economy recovery, the dry bulk market became more vulnerable to the oversupply threats and depressing demand.”
The company added that an average of three newbuildings being delivered worldwide on a daily basis will further accelerate the oversupply situation.