Maybulk trims loss on improved charter rates

PETALING JAYA: Malaysian Bulk Carriers Bhd’s (Maybulk) net loss for the second quarter ended June 30, 2017 narrowed to RM10.75 million from RM40.33 million a year ago due to improved charter rates in the dry bulk segment.
In a filing with Bursa Malaysia yesterday, the group said charter rates from dry bulk segment were at US$8,317 during the quarter.
During the quarter, the group recognised a gain of RM5.429 million in its other operating income from the disposal of two vessels while administrative expenses were less due to lower shared services cost.
Its associate, PACC Offshore Services Holdings Ltd (POSH), recorded a lower net loss during the quarter due to improved contribution from their joint venture (JV) POSH Terasea, as the JV executed and completed several major towage and positioning projects.
The group’s share of results from POSH was a lower loss. Its share of JVs’ results also improved due to better charter rates while revenue for the quarter rose 27.72% to RM70.69 million from RM55.35 million a year ago.
For the six months ended June 30, 2017, Maybulk’s net loss narrowed to RM43.96 million from RM64.41 million a year ago while revenue rose 24.62% to RM135.66 million from RM108.85 million a year ago.
The dry bulk segment’s pre-tax loss decreased by 76% to RM15.585 million during the period mainly due to improved charter rates. Note that the group disposed of an 11-year-old handysize bulker and registered a gain of RM1.861 million.
The tanker segment’s pre-tax profit decreased by 74% to RM3.884 million due to a drop in charter rates and reduced hire days as a result of the disposal of a tanker during the period and two tankers last year. The group registered a gain of RM3.568 million after disposing of its last tanker.
POSH reported an increased attributable loss of US$27.486 million due to lower charter rates and utilisation across its major business segments. The group’s share of POSH’s results was a loss of RM25.812 million, compared with RM11.485 million loss a year ago.
Moving forward, Maybulk said it is encouraged by the improving dry bulk market but remains concerned over the depressed offshore services segment.
“The outlook for the oil and gas sector continues to remain depressed and the timing of recovery is uncertain. This will continue to have a negative impact on the financial performance of our associate, POSH, as well as Maybulk,” it said.
The group’s share price fell 1.88% to close at 78.5 sen yesterday with 861,200 shares traded. It has a market capitalisation of RM785 million.