The Board of Directors of Pacific Basin Shipping Ltd has announced the results of the company and its subsidiaries for the year ended 31 December 2016 as follows:
Record low dry bulk market conditions significantly undermined the company’s ability to generate satisfactory results in 2016.
A net loss of US$86.5 million was recorded and positive operating cash flows of US$49.5 million.
Handysize daily TCE earnings outperformed the market by 34%.
Cash proceeds of US$22 million from the sale of towage and other non-core assets were generated.
The year-end cash position was US$269 million with net gearing of 34%.
US$158 million of undrawn committed loan facilities exceeds US$119 million of remaining newbuilding capital commitments.
The Handysize and Supramax business is operating more owned ships enabling greater control and service quality.
The company’s fleet comprises 220 dry bulk ships including 96 owned, with a further 3 owned newbuildings joining our fleet by mid-2017.
44% of our Handysize and 71% of our Supramax revenue days for 2017 have been covered at US$8200 and US$8680 per day net respectively.
Handysize operating costs have been reduced to US$3970 per day through scale benefits and careful cost control.
The dry bulk market rates improved in the fourth quarter; indices have followed their typical seasonal decline in early 2017 but are well above levels of one year ago and sentiment in the industry is recovering. However, the market continues to be oversupplied and freight earnings are still below breakeven for many shipowners.
Pacific Basin Shipping Ltd expects continued uncertain markets in 2017 and will continue to conduct business efficiently and safely while astutely combining ships and cargoes to maximise the company margins.
Read the article online at: https://www.drybulkmagazine.com/shipping/02032017/pacific-basin-shipping-records-net-loss-of-us865-million/