Asia/Pacific News
China's Zhongchang Marine Issues Profit Warning Citing Poor Dry Bulk Market
Chinese dry bulk carrier Zhong Chang Marine Co. Ltd. (Zhongchang Marine) has warned the Shanghai stock market that it is set to produce an even bigger loss in 2014 than last year, Seatrade Global reports.
The company said its estimated loss for last year would be RMB330 million ($52.7 million) compared to RMB81.25 million ($13 million) in 2013.
The company reportedly said that, although falling bunker prices had helped, margins were still being hit by low freight rates.
The company's stock will be placed into "Special Treatment" according to stock exchange rules following two consecutive annual losses and risks being delisted if it fails to turn a profit in 2015.
It is understood that Zhongchang Marine, which operates largely within the Chinese domestic market, has plans to scrap three of its bilkers with an average age of 28 years.
Last month, VesselValue.com data published on Ship & Bunker showed that Zhongchang Marine's 1986-built Zhong Chang 68 Handysize bulker had been sold for demolition on January 20.
