Second quarter loss drags CMB $55.9m into the red for first half

The group's dry bulk division Bocimar suffered $87.1m losses in the first half, as the coal and steel transport markets languished at some of their lowest levels ever with oversupply of ships and falling demand.

Bocimar's result was also hit by second quarter losses of $2.9m and $12.5m on the sale of the CMB Biwa and CMB Jialing respectively.

Average earnings for ships in the first half were down across the board compared to the same period last year. Capesizes earned $12,937 per day down from $20,834, panamaxes were down to $7,224 per day from $10,524 and handysizes dropped to $4,584 per day from $9,274 per day.

CMB's foray into containership ownership was finalised during the second quarter with the acquisition of 14 Delphis boxships. Delphi has contributed $6m to the first half result for CMB, taking into account one-offs including a $3.6m debt waiver, $1.2m exchange rate gain and $1.6m income from the buyout of Delphi's joint venture partners on seven of the vessels.

The company also exercised options for two ice-class 2,000 teu vessels at Hanjin Heavy Industries, sister vessels to the two ordered by CMB in December 2014. The ships are expected to be delivered in September and December 2016.

Bochem, the group's chemical tanker division, earned $1.8m in the first half, improving on a $265,000 loss in the same period last year, buoyed by strong freight rates.