Increase in steaming coal imports
Malaysian Bulker Carriers (MBC) is anticipating the dry bulk market to recover over the medium-term with an increase in steaming coal imports in place of Japan’s decommissioned nuclear power plants.
The reconstruction of Japan’s devastated areas are also likely to spur demand in the dry bulk sector, it added. In the short-term, the dry bulk sector will be adversely affected by the Japanese disaster as cargo volumes are taken off the market due to plant shutdowns and logistical slowdowns, the company said in a statement.
As with many other dry bulk owners, MBC has experienced weak charter rates that have affected its bottomline. The Kuala Lumpur-listed firm managed to post a marginal increase in net profit in the first quarter while revenue dipped due to a 28% fall in the hire rates. MBC recorded net profit RM52.7m in the quarter ended 31 March 2011, edging up from RM51.4m in the same quarter last year as operating expenses were reduced. Revenue declined by 25.8% to RM84.9m compared to RM114.4m in the previous year’s quarter.
The company raised concerns over an over-tonnage market as newbuildings continue to flood the market. Managing overcapacity will remain a challenge in coming years, it said.
Source: Seatrade Asia
