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Thoresen Shipping Q1 loss widens to $7.5m

Thoresen Shipping Q1 loss widens to $7.5m
The severely weakened dry bulk shipping market has hit the earnings of Thoresen Shipping Group, significantly widening its net loss during the first quarter of 2016.

The loss for the quarter ended 31 March 2016 was reported at THB263.9m ($7.46m) compared to the smaller loss of THB32.9m in the same period of last year.

The quarterly freight revenue was reduced by 58% year-on-year to THB744.7m.

With the Baltic Dry Index (BDI) having fell to its 30-year low at 290 points prior to the Chinese New Year before slowly picking up in March and April, Thoresen Shipping has seen a decline in average time-charter rates for its supramaxes and handysizes.

“The drastic fall in BDI was due to the continuing depression in shipping market from low international trade and an excess supply of ships,” said Thoresen Thai Agencies (TTA), parent firm of Thoresen Shipping.

Thoresen Shipping said its supramax average time-charter rates dropped to $3,801 per day in the first quarter this year compared to $6,434 per day in the previous corresponding quarter and $5,779 per day in the fourth quarter of 2015.

Handysize average time-charter rates fell to $3,405 per day in the first quarter this year compared to $5,339 per day in the year-ago period and $4,692 per day in the fourth quarter of 2015.

As at 31 March 2016, Thoresen Shipping owned 23 vessels with an average size of 50,946 dwt and an average age of 11.75 years. The group also chartered in 7.9 vessels during the first quarter.