Manila: Thailand-based Precious Shipping yesterday reported a 12% rise in 2007 net profit to 4.16bn baht ($126m) in spite of lower fleet capacity (due to its decision to sell 10 older vessels) and foreign exchange losses due to the stronger baht, reports Reuters. The dry cargo transportation specialist benefited from extremely strong freight rates, particularly in the second half of the year that more than made up for the 175m baht lost due to the strengthening of the baht versus the dollar as well as the 242m baht loss as a result of derivatives contracts. The company's profits were also boosted by 1.56bn baht following the sale of 10 of its older vessels - which unfortunately reduced operating income by 13% at a time when the dry bulk market was booming.
However, Precious Shipping has already begun a fleet renewal programme and has placed a $360m order for 12 bulk vessels of about 32,000dwt each with India's ABG Shipyard. [14/02/08]
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