Singamas warns of $25m loss in first six months

Hong Kong-listed Singamas has anticipated a loss of at least $25m for the six-month period ending 30 June 2016, as against the gain of $10.08m in the year-ago period.

“The expected significant loss for the six months ending 30 June 2016 is primarily attributable to the decline in the group’s turnover and gross profit margin due to the continuing downturn of the marco economy from second half of 2015 into 2016 as well as further compensation made in connection with the Tianjin explosion incident due to commercial considerations,” Singamas stated.

The company pointed out that demand for new containers has been reduced due to the sluggish container shipping market.

“The recent major mergers and acquisitions of a few shipping companies and container leasing operators also created uncertainties to the market. The market uncertainty is expected to continue in the second half of 2016,” it said.

But Singamas believed that its financial situation “as a whole is sound with its gearing ration maintaining at a reasonable level.”

The company is scheduled to announce its results for the six months ended 30 June 2016 in August.