Asia/Pacific News
Singaporean Bunker Tanker Owner's Profits Hit By High Fuel Costs
Singaporean bunker tanker owner Yujin International Ltd (Yujin) said Friday that high fuel prices, as well as higher repair and maintenance costs, were to blame for a 50 percent slide in operating profit for the year ended December 31, 2012, which fell to USD $0.6 million from $1.2 million in 2011.
Overall, the company posted a loss of $1.55 million, which represented an improvement on the $6.13 million loss it posted in 2011.
The company had four bunker tankers in 2012, with revenues for the segment down to USD $7.6 million from USD $8.2 million in the previous year, which it said was due to lower charter rates and further weakening of the U.S. dollar against the Singapore dollar.
Two of the company's bunker tankers have since been sold for a total consideration of SGD 4.5 million (USD 3.5 million).
Yujin also noted the net refund of USD $6 million it received last month from the cancellation of unfulfilled contracts for two 5,500 dwt chemical tankers, adding that it received approximately USD 14.5 million from the yard, with the USD $6 million being based on the company's net receipt after its repayment of the associated bank loans.
Talks with a potential strategic partner over possible investment in the firm, as previously reported by Ship & Bunker, were said to be ongoing.
