Jinhui Holdings Q2 profit plunges 58%
Dry bulk shipping company Jinhui Holdings saw second quarter net profit fall by more than half to $8.1m from $19.3m previously as revenue fell 27% to $60.7m from $83m previously, Seatrade Asia online reports.
Revenue contribution from its expanded owned supramax fleet was countered by the decrease in revenue from the chartered-in capesize fleet, reflecting the sharp fall in the average daily time charter equivalent (TCE) rates of the group, Jinhui said in a stock market announcement.
Jinhui was forced to charter-out its two chartered-in capes at an operating loss in June 2011 as the previous high rate charters were terminated early last year. These charters ended in April and brought down the TCE for the capesize fleet to $11,758 in the second quarter from $43,454 in the previous corresponding period.
These vessels continue to drag on Jinhui's performance with them going back into more loss making charter in March and April for eight and 18 months respectively. In total the group recognised a net provision for loss on charter hire of $10.9m for the quarter.