Profit for the three-month period was recorded at $4.69m as against a loss of $3.2m in the same period of last year, boosted by higher other operating income from the settlement of $18.5m from a charterer in relation to repudiation claims.
Other operating income also included fair value gain of $389,000 on investment portfolio of equity and debt securities during the first quarter.
Dry bulk shipowner Jinhui Shipping registered a quarterly revenue of $22.21m, down 39.5% year-on-year from $36.69m, due mainly to the large exposure to spot market as freight rates kept declining to unexpectedly low levels.
The average daily time charter equivalent rates earned by the group’s fleet dropped 36% to $6,749 for the first quarter compared to $10,558 for the previous corresponding quarter,
The shipowner noted that the dry bulk shipping market experienced another depressing quarter in 2015 as the sharp reduction in China’s dry bulk commodities importing activities added severe price pressure to the weak and fragile shipping market.
“We expected the 2015 dry bulk shipping market will be a tough market, and have been getting ready for this,” Jinhui Shipping commented.
“We remain positive with the longer term market given the long term import requirement from China and Asian countries will experience positive growth,” the company added.
It noted that the newbuilding order frenzy has significantly slowed down, and owners have realised they need to be careful when choosing shipyards.
“Going forward, we hope aspiring buyers may remember this industry is highly capital intensive, requires commitment and careful consideration,” it said.
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