Norwegian bulker operator Belships' reports strong Q3

Norwegian-based bulker operator Belships made operating revenue of in US$22.6m in Q3 and an operating profit of $75m against $15.3m and $2.7m respectively in Q3 2007. The increase in operating income is related to Elkem Chartering's handysize operations and $3.5m for the cancellation of a charter party. The company notes: “Rates in the dry cargo market fell significantly through the whole quarter. Many actors believed this was a temporary phenomenon linked to the holding of the summer Olympic Games in China. However, the increasingly expanding financial crisis combined with the delivery of a large number of newbuildings and converted tankers have revealed a structural imbalance in the market.”
Looking ahead the company says: “After 5 years of record earnings in the dry cargo market it now appears that the so-called super cycle has come to an end. This was expected given the large order book for newbuildings, but the financial crisis has accelerated the fall in rates. The rates have also continued to fall strongly in Q4 as a result of the major financing problems in world trade and a likely recession. The handysize operations in Elkem Chartering will also be affected by the market's fall and the results for Q4 will be weaker, among other things as a result of the fact that Pax Phoenix's charter party has been extended until the middle of 2009 at a reduced rate.”