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Mercator Lines widens Q1 loss, revenue falls

Mercator Lines widens Q1 loss, revenue falls
Dry bulk shipowner Mercator Lines (Singapore) Limited has widened its net loss for the first quarter ended 30 June 2015 as revenue fell.

Loss for the quarter was recorded at $9.9m compared to the deficit of $7.12m in the same period of last year.

Revenue during the first quarter of its 2016 financial year decreased by 48% year-on-year to $8.55m due mainly to the fall in spot/contract rates and disposal of a vessel.

The cash flows and financials of the group has been substantially impacted due to fall in freight rates and deterioration in dry bulk markets in the first half, according to Mercator Lines.

It added that the group has been unable to meet certain covenants and payments under the loan agreements during the quarter ended 30 June 2015.

It is currently in discussions with all lenders and certain creditors for standstill, refinancing, recapitalisation and restructuring plan.

Mercator Lines operates a fleet of 12 owned dry bulk vessels and one chartered-in, comprising of panamaxes/post panamaxes/kamsarmaxes with an aggregate capacity of about 1m dwt as on 30 June 2015.