India-based dry bulk shipping firm Mercator Lines saw its first-half profit slashed by 76% due to a difficult market condition of low rates and high operating costs, Seatrade Asia online reports. The Singapore-listed firm posted first-half net profit of $5.62m compared to $23.33m in the same period of 2010.
Revenue was recorded at $73.24m, down 10% from $81.24m a year ago.
“The difficult market conditions have kept the freight rates low,” said Shalabh Mittal, managing director and ceo of Mercator.
The company believes revenues and profits from the new long term contracts negotiated during the present market conditions would continue to be adversely affected.
However, the dry bulk trade is expected to turn positive in the long run as coal demand from China and India is forecast to grow at an 8% annual rate until 2020, Mercator Lines added.
Revenue was recorded at $73.24m, down 10% from $81.24m a year ago.
“The difficult market conditions have kept the freight rates low,” said Shalabh Mittal, managing director and ceo of Mercator.
The company believes revenues and profits from the new long term contracts negotiated during the present market conditions would continue to be adversely affected.
However, the dry bulk trade is expected to turn positive in the long run as coal demand from China and India is forecast to grow at an 8% annual rate until 2020, Mercator Lines added.