Bunker Tanker Sale Causes 2014 Operating Loss for Singapore's Yujin

Singapore-based Yujin said it had a "substantial" rise in operating profit

Yujin International Ltd. (Yujin) this week reported a 13 percent increase in revenue of its regional tankers to $5.8 million for 2014, as well as a "substantial" rise in operating profit to $0.6 million.

This is compared to a 2013 regional tanker revenue of $5.1 million and operating profit of $0.3 million, and the Singapore short-range tanker player attributes the improved figures to better charter rates and higher fleet utilization.

However, Yujin's consolidated net revenue declined to $7.2 million in 2014 compared to $10.4 million in 2013, due to the sale of four bunker tankers and reduced ship management income.

The bunker tanker sale also caused an overall operating loss of $0.1 million compared to $1.1 million in 2013, reports Yujin, which currently manages 10 vessels.

Focusing on the positives, Lee Keen Whye, chairman of Yujin, noted in a statement that, "Due to redeployment of the less efficient small tankers to coastal and inland trade, there was an increase in demand for our regional tankers, contributing to better rates and high usage."

Looking forward, Whye said that the regional shipping market is expected to improve marginally: "Freight rates strengthened in some sectors and fuel costs have weakened and [are] expected to remain soft.

"If freight rates and fuel costs continue to improve, the market for regional tankers remains strong."

Still, Yujin's directors called for no dividends to be paid for the year ended 31 December 2014.

Yujin, whose tanker fleet serves the chemical and oil industry in the Asia Pacific Region, embarked on the sale of its bunker tankers last year in order to partly repay an existing bank loan, and for working capital purposes.