Third quarter net profit at Jinhui Shipping plunged by 47.3% on an annual basis to $11.8m due to low freight rates and high operating expenses, Seatrade Asia online reports.
A 16.1% year-on-year drop in revenue to $59.8m during the quarter ended 30 September 2012 added to the poorer performance for the Hong Kong-listed company.
Jinhui Shipping explained that revenue contributed from expanded owned supramax fleet was offset by the decrease in revenue earned from chartered-in capesize fleet, reflected in the sharp fall in the average daily time charter equivalent rates of the group's fleet.
“Looking ahead, we expect further company defaults, rising counterparty risks, and further pressure on asset prices, but at the same time we believe there will be interesting opportunities for those who are patient, prepared and have placed liquidity as a priority in the past year,” Jinhui Shipping said.
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