Seatrade Maritime is part of the Informa Markets Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

Maybulk sees $6m Q1 loss, to sell ships to boost liquidity

Maybulk sees $6m Q1 loss, to sell ships to boost liquidity
Malaysian Bulk Carriers (Maybulk) expects the depressed dry bulk trade environment to persist this year on weak demand exacerbated by the oversupply situation in the market and is looking to drop ships to boost cashflow, local media reported.

Maybulk chairman Ahmad Sufian said they had recently sold two ships, including the recent disposal of the post-panama vessel Alam Pesona for $6.9m.

He added that they were looking to dispose more assets this year, particularly the older ships over 10 years old, to increase their cash position and support the group's fleet renewal programme.

The company has three new vessel deliveries coming in 2018 and 2019 and one at the end of this month.

Maybulk ceo Kuok Khoon Kuan said they had decided to sell some of the older vessels as they did not expect to see a good market during the current tough market conditions.

“So we made the decision to exit those older ships.

“Our new buildings were contracted for way back in 2012 and 2013 when oil prices were at sky-high levels.

“Our fuel efficient new buildings can then command good premiums over older and less economical ships,” he said.

He said the group was also looking to optimise its capital structure by delaying its newbuild deliveries and deferring its charter payments.

“Market recovery will be a slow process.

“The outlook will remain a struggle, and we will continue to see challenges due to the unfavourable macro conditions.

“2016 may be weighed down by the slowdown in China as well as by lower commodity prices and also due to further new building deliveries,” he said.

However, he said China’s significant cutback on coal imports had been mitigated by an increase in Indian coal imports.

Maybulk’s dry bulk segment reported a loss of MYR34.2m compared to MYR23.0m a year ago due to a 40% fall in charter rates earned.

Revenue however rose slightly by 3.4% to MYR53.5m, with its tanker segment seeing a profit of MYR7.1m from MYR5.1m previously, and marginally higher profit from its ship brokerage and management segment.

This was also supported by improved contribution from its associate PACC Offshore Services Holdings Ltd (POSH) and its joint ventures.

The group’s stake in POSH contributed a significantly higher MYR4m for the quarter, compared to MYR16,000 a year ago.