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Sinotrans Shipping issues profit warning for 2015

Sinotrans Shipping issues profit warning for 2015
Sinotrans Shipping has warned investors that it is expected to record a “subtantial decrease” in profit for the year ended 31 December 2015 compared to the previous financial year, or even a “considerable loss.”

Hong Kong-listed Sinotrans said the substantial decrease in profit or considerable is mainly due to the weak dry bulk shipping market, and excess bulk vessel capacity suppressing rates.

In 2014, the shipowner posted a profit attributable to owners of the company of $1.86m as against a loss of $638,000 in 2013.

As at 31 December 2015, the Baltic Dry Index (BDI) recorded an average of 718 points, representing a year-on-year decrease of 35%. The index has further plunged to 316 points on Monday.

However Sinotrans Shipping informed that “the financial position of the group remains stable.”