Net loss for the financial year ended 31 March 2015 was $125.4m, a wider deficit compared to the loss of $22.8m in the previous financial year. The Singapore-listed dry bulk arm of India’s Mercator Ltd blamed the loss on exceptional items of $91.1m including impairment of vessels and provision for onerous contract, as well as depreciation of $35.4m.
Revenue for the year came up to $56.3m, down 25.2% compared to $75.3m in financial year 2014.
In financial year 2013, Mercator Lines recorded a loss of $76.8m, reversing from its last profitable 2012 financial year with a gain of $7.8m.
“The dry bulk shipping markets are indeed very challenging but given our track record and competitive strengths, the company is confident that it would ride over the current downturn in the industry,” said Shalabh Mittal, managing director and ceo of Mercator Lines.
“The company continued to outperform the Baltic Panamax Index rates achieving a TCE of $9,193 versus the average market rate of $6,304 per day,” he added.
Falling commodity prices, an oversupply of new bulk carriers and weakening international demand have resulted in a considerable slowdown in global trade and downward pressure on freight rates.
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