Asia/Pacific News
Singapore Tanker Owner Sees Revenues Drop After Ship Sales
Singapore short-range tanker company Yujin reports its revenues fell 23 percent to $10.4 million in 2013 as it sold four vessels, shrinking its fleet to two tankers with a combined tonnage of 9,771.
The company reduced its losses slightly, to $1.1 million, compared with $1.6 million in 2012.
On the positive side, the company reported an 80 percent increase in its operating profits to $1.1 million, as it cut its ship management costs and improved the efficiency of its regional tanker operations.
The company's remaining chemical tanker is on spot contract, while its bitumen tanker is on a term contract with the next renewal date in October 2014.
Yujin reiterated a previous statement that it is in discussions with a potential strategic partner who is considering investing in the company.
Chairman Lee Keen Whye said the company is not optimistic about the economic situation, as fuel costs remain high and freight rates are relatively low due to continued supply-demand imbalance.
"The shipping market is expected to continue to remain weak," he said.
"If freight rates and fuel costs do not improve, the environment in which the group operates will remain challenging with potential negative effects on its financial performance," he said.
In addition to selling ships from its fleet, Yujin cancelled an order for two newbuildings in 2012.
