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Zhongchang Marine warns of $53m loss in 2014

Zhongchang Marine warns of $53m loss in 2014
China’s Zhongchang Marine has warned investors of a potential loss for its financial year 2014 due mainly to the sluggish dry bulk shipping market.

Shanghai-listed Zhongchang Marine said it estimated the 2014 loss to be approximately RMB330m ($52.94m), widening from the loss of RMB81.25m in 2013.

Zhongchang Marine, which operates primarily in China’s domestic market, said that while the plunge in bunker fuel prices has helped to lower the company’s operating costs, margins have continued to be impacted by low freight rates.

According to the stock exchange regulations, the Chinese shipowner’s stock will be placed under the so-called “Special Treatment (ST)” category due to two years of consecutive losses. The company faces delisting if its annual loss continues for a third year.

Meanwhile, Zhongchang Marine said it will send three elderly bulkers with an average age of 28 years to the scrapyard.