World News
Pacific Basin Sees Much Improved Financials For 2015
Pacific Basin Shipping Limited (Pacific Basin) Thursday announced that it expects financial losses in 2015 to be substantially lower than during 2014, despite 2015 being one of the worst years on record for the sector with historic low rates.
The company's board of directors said that it anticipates a net loss in the range of $5 million to $20 million for the full year ending December 31, 2015.
That compares to a net loss of $285 million recorded in the year ended December 31, 2014.
For the first half of 2015, Pacific Basin reported a profit of $5.8 million.
The company said that its first-half 2015 results were positively impacted by $15.7 million in mark-to-market bunker derivative income.
First-half results also included a $3.7 million profit on the sale of an interest in a bunker tanker joint venture.
Based on current bunker prices, the company said it does not anticipate the same one-off positive effects in the second half of 2015.
The company added that full-year results will depend on the market value of bunker swap contracts at the year end.
"If the average forward bunker rate in the bunker swap contracts increases/decreases by
10%, then the full-year mark-to-market movement would increase/decrease by approximately $2.7 million," the company said.
The company noted that it is continuing to utilise bunker derivatives to hedge its fuel price exposure for future-dated fixed rate cargo contracts.
Pacific Basin also said it has recently purchased an eight year-old 32,000 dwt Handysize log/bulk carrier for early 2016.
In October, Ship & Bunker reported that Pacific Basin was predicting ongoing financial distress for operators in the global dry bulk sector.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 501.00 | 6.00 | 598.50 | 7.00 |
| Rotterdam | 442.00 | 4.00 | 590.50 | 1.00 |
| Houston | 445.00 | 7.50 | 591.00 | 4.50 |
| Fujairah | 493.00 | 9.00 | 708.50 | 10.50 |
| Global 20 Ports Average | 518.50 | 3.50 | 695.50 | 3.00 |
| Global 4 Ports Average | 470.00 | 4.50 | 622.00 | 5.00 |
| Global Average Bunker Price | 561.50 | 3.00 | 745.50 | 1.50 |
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