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Jinhui sells four supramaxes for $48m

Jinhui sells four supramaxes for $48m
Jinhui Shipping and Transportation has sold four supramaxes at a total price of $48m to Chinese ship owning and chartering company Minyi (Tianjin) Ship Leasing, as Jinhui Shipping looks to optimise its fleet profile in the weak dry bulk shipping market.

The four bulk carriers are the 2009-built 54,768-dwt Jin Shun, the 2009-built 54,768-dwt Jin Mao, the 2010-built 55,091-dwt Jin Heng, and the 2011-built 57,352-dwt Jin Feng.

The four vessels will be delivered to the Chinese buyer between 1 March to 15 April 2017.

Hong Kong-listed Jinhui Holdings Company, major shareholder of Jinhui Shipping, said the group would realise a total book loss of approximately HKD53m ($6.8m) on disposal of the four ships.

Jinhui Holdings said the net proceeds would be used for the repayment of the vessel mortgage loans and for general working capital.

“The directors believe that the disposal will enable the group to enhance its working capital position and further strengthen its liquidity, and optimise the fleet profile through this ongoing management of asset portfolio,” Jinhui Holdings said.

The group recalled that freight rates in 2016 had been extremely volatile and at times below the company’s operating costs. While it believed the market will recover to a better balance of demand and supply of vessels, the market will continue to see uncertainties with respect to the global economic outlook.

“This will inevitably introduce volatility to our business performance, as well as the carrying value of our shipping assets and financial assets, and hence we believe it will be prudent to periodically reduce indebtedness and enhance our liquidity when such opportunities arise,” Jinhui Holdings stated.

After the sale of the four supramaxes, Jinhui Shipping owns two post-panamaxes, 21 modern grabs fitted supramaxes, and one handysize - a total of 24 ships. Jinhui has reduced its vessel numbers from 35 since June 2016 amid its ongoing fleet optimisation exercise.