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Delisting threat looms for Nanjing Tanker as losses continue

Delisting threat looms for Nanjing Tanker as losses continue
China-based Nanjing Tanker Corporation (NJTC) has forecast a net loss for the first nine months of 2013, putting the company at a higher risk of delisting from the Shanghai Stock Exchange.

“The company predicts a loss in the first nine months of 2013. If the company is unable to return to profit in the financial year 2013, shares of the company will cease trading on the Shanghai Stock Exchange after the release of the 2013 annual report,” NJTC said.

The tanker company, a subsidiary of state-owned Sinotrans & CSC, posted a first half loss of RMB728.43m ($119.11m), widening from a loss of RMB645.81m in the previous corresponding period. However, revenue during the six months rose to RMB3.65bn from RMB2.96bn a year ago.

“Due to uncertainties surrounding the global economy and China's economic slowdown, prospects for the oil tanker shipping market is expected to remain dull in the second half of this year,” NJTC said.

“The VLCC market continues to be under pressure due to severe oversupply, leading to continuing weak freight rates. The MR market will see rates hover at below average levels in the second half while the chemical tanker segment is still struggling with a demand-supply imbalance amid intensifying market competition,” it added.

As at 30 June 2013, NJTC operated a fleet of 87 tankers with a total tonnage of 7.98m dwt.

TAGS: Tankers