Dry Bulk Shipper Hellenic Carriers Stays in the Red

Hellenic says its has lowered the average age of its fleet.

Hellenic Carriers Limited (Hellenic) [AIM: HCL] has announced an improved performance in its first half (H1) results for 2014, but showed a continued loss despite a 167 percent jump in year-on-year revenues to $10.4 million, compared to $3.9 million for the same period of 2013.

The net loss for H1 2014 amounted to $5.3 million, compared to a net loss for H1 2013 of $6.8 million.

The AIM-listed bulk shipper unaudited financial report for H1 showed that its cost of bunkers had increased for the period, which is said was partly due to the need for a greater number of ballast legs in the search for contracts.

"The market recovery which commenced in the 4th quarter of 2013 has not gained the anticipated momentum to date," said Fotini Karamanli, Chief Executive Officer, Hellenic Carriers Limited.

"However, experience dictates that an upward trend may not always be a straight line and any rapid improvement, such as the one experienced in the latter part of 2013, may at times be followed by a downward correction."

"Notwithstanding this volatile environment, the Company still managed to deliver better results compared to last year."

Hellenic noted its acquisition of a 2004-built Supramax vessel, in addition to the two newly built Kamsarmax ships of which it took delivery at the end of last year, mean its fleet has doubled in size in comparison to H1 2013 and at 10.4 years, is now on average much younger and more efficient compared to 16.0 years for the period last year.

"Going forward, we consider that the fundamentals of the dry bulk shipping market remain positive," said Karamanli.

"We expect that we will experience a firming rate environment during the fourth quarter of 2014. Our Company is well positioned to take advantage of such a development. However, as mentioned above, although the fundamentals are solid, the road towards recovery may not always be smooth."

Earlier this year, Greek dry bulking operation, Globus Maritime Ltd, said its financial results were suffering in a weak market, citing rising bunker costs.