Asia/Pacific News
Malaysia's Largest Drybulk Owner Issues Profit Warning
Malaysia's largest drybulk shipowner, Malaysian Bulk Carriers Bhd (Maybulk) has issued a profit warning in relation to its 2015 financial results, local media reports.
The company says it expected to record "a substantial loss" for the fourth quarter, ending December 31, 2015, as well as for the full 2015 financial year.
The loss stems from a provision for onerous dry bulk contracts, and an impairment charge taken on an investment in PACC Offshore Services Holdings Ltd (POSH), an offshore marine support services company.
In noting the continued weak dry bulk markets, Maybulk said: "The group has reviewed its non-cancellable operating lease contracts for the chartered-in vessels and based on a preliminary assessment, the charter-in costs are higher than the current and likely market rates. Hence a provision for onerous contracts has to be made."
Maybulk executives said the current low price of crude oil has also adversely impacted the global offshore marine industry.
"Shareholders and investors are advised to exercise caution when dealing in the shares of the company," a Maybulk executive was quoted as saying.
In February 2014 Ship & Bunker reported that Malaysian container ship operator Shin Yang Shipping Corporation was also suffering a dearth of profits.
