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Courage Marine narrows Q3 loss to $1.2m

Courage Marine narrows Q3 loss to $1.2m
Courage Marine saw its third quarter net loss narrow from $2.3m in the previous corresponding quarter to $1.2m mainly due to lower fixed costs after the disposal of its capesize bulker Cape Pioneer and better fleet utilisation during the quarter, the group said in a stock market announcement.

Turnover decreased by 8% to $2.4m from $2.6m as a result of  low freight rates as the BDI remained low and averaged around 1,000 points during the quarter, the company noted.

Continuing with its cost-saving initiatives Courage Marine managed to cut its cost of sales by a third from about $4m previously to $2.8m. Costs were reduced mainly due to less variable costs as the fleet was cut down.Courage Marine noted that the dry bulk market remained poor during the past few months despite the BDI spiking up to the 1,200 point level in mid August. The index has since dropped back to the 600 point level and low demand for commodities in the Greater China Region, and over-supply of vessels has led to more pressure on the freight rates in the dry bulk market, the group said.

After various disposals and finetuning its fleet, Courage said its updated tonnage is now about 186,000 dwt.

Looking ahead however the group said: "Fleet utilisation and freight rates are expected to remain low for the rest of the year."

As a result, Courage will continue to explore various options for reducing costs, including a restructuring/streamlining of its Taiwan office's operation and will also explore opportunities on the ship chartering service business and other business opportunities which may arise, and may also explore options for fund-raising, including equity and/or loan financing opportunities.

TAGS: Dry Bulk