Jinhui Shipping and Transportation's third-quarter net profit was slashed by half amid a tough year for the dry bulk shipping market, Seatrade Asia online reports. Net profit for the three months ended 30 September 2011 stood at $22.4m, down 50.4% from $45.2m seen in the same period of last year.
The shipping firm posted revenue of $71.3m during the quarter, a drop from $89.5m recorded a year ago.
“The freight market has been persistently weak throughout the year 2011 when China reduced its government stimulus package, stepped up its efforts to combat inflation, and cool down the domestic real estate market by restricting lending,” Jinhui said.
The company believed that the current oversupply of tonnages will continue for some time, with the rebalancing of supply versus demand likely to take place “later rather than sooner.”
The shipping firm posted revenue of $71.3m during the quarter, a drop from $89.5m recorded a year ago.
“The freight market has been persistently weak throughout the year 2011 when China reduced its government stimulus package, stepped up its efforts to combat inflation, and cool down the domestic real estate market by restricting lending,” Jinhui said.
The company believed that the current oversupply of tonnages will continue for some time, with the rebalancing of supply versus demand likely to take place “later rather than sooner.”