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HUBLine hit by disposal of four old vessels

HUBLine hit by disposal of four old vessels
Malaysia-based HUBLine slipped to a second quarter net loss after scrapping four aged vessels at a considerable loss, and revenue fell on lower cargo volumes.

The intra-Asia shipping firm was drowned in red ink as it recorded a loss of MYR31.05m ($10.07m) in the quarter ended 31 March 2013, as against a profit of MYR2.75m in the same period of last year.

“The losses in the current quarter were mainly due to the scrapping of four older vessels which resulted in a loss of MYR26.2m,” HUBLine said in a regulatory filing.

Revenue for the Kuala Lumpur-listed firm dropped 24.9% year-on-year to MYR91.39m. It blamed the decreased earnings to lower cargo volumes during the quarter coupled with excess capacity in the shipping industry, leading to low freight rates.

“The Malaysian and intra-Asian shipping environment continues to be challenging and it is likely to remain so in the short term. Macro pressures will most likely continue to test all participants in the containerised and dry bulk businesses,” HUBLine commented.

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