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Courage Marine narrows H1 loss to $3.3m

Courage Marine narrows H1 loss to $3.3m
Dry bulk ship owner Courage Marine has reported a $3.3m loss for the first half of 2016, narrowing a $17.1m reverse for the corresponding period in 2015.

In a stock market announcement, the group attributed the improved performance to the absence of the disposal loss of MV Cape Pioneer, the impairment loss on deposits paid for a coal trading contract and on the Group’s vessels totalling $11.1m in the previous period.

However, Courage Marine is still in a tough position, with revenue falling by 38% from $3m in the first half of 2015 to $1.8m this year.

Revenue from vessel chartering decreased to $1.7m, reflecting the low demand in the dry bulk market which continued throughout the first half of the year, as the Baltic Dry Index (BDI) remained low and hovered at the 300 to 600 level during most of the period.

Courage Marine’s newly acquired subsidiaries, mainly in the provision of logistics, custom clearance and auxiliary services as well as import and export of goods, which were acquired during the first half period, generated income of $73,000 during the first half.

The vessel chartering business continued to struggle as expected and incurred an operating loss of $1.8m as demand in the dry bulk market remained low.

While the newly acquired logistic services and merchandise trading business has started bringing in revenue, it also recorded an operating loss of $359,000 primarily due to business development expenses incurred.

Looking ahead Courage Marine said with the dry bulk market remaining difficult due to low demand for commodities in the Greater China Region, coupled with over-supply of vessels there has been additional pressure on freight rates.

"Owing to challenging operating environment of vessel chartering business, the group will continue to explore various options for reducing costs and increasing revenue of the business," it added.

Although the newly acquired subsidiaries are still in the development stage, it is expected Courage Marine will be able to horizontally expand its transportation business and create value to shareholders.