Goldenport cuts the red

Goldenport Holdings has eked out a small profit in the second quarter, despite an 18% decline in revenues.

Net income was only $454,000 but it was a major improvement on the loss of $5.9m seen in the same quarter in 2013.

Revenue at the John Dragnis-led shipowner was $12.3m against the $15m achieved a year ago, by the London-listed company.

“Trading during the second quarter was softer than in the first quarter due to continued subdued demand in the Far East and a weak South American grain season,” Goldenport said.

It said supramax rates proved more resilient than capesize and panamax rates, reflecting their versatility and reduced earnings volatility, while containership rates remained broadly stable at levels close to all-time lows.

 Goldenport’s fleet was fully employed during the quarter with the utilisation rate reaching close to 99%, it claimed.

“The time charter equivalent rate for the fleet was stable, while average daily operating expenses dropped by 11% due to the retirement of older, less efficient tonnage,” it added.

In anticipation of a recovery, Goldenport says it continues to employ its fleet on a short term basis under 3-6 month time charter agreements.

“In the past few weeks we have experienced an improvement in dry bulk rates which bodes well for the remainder of the year,” it said.

Goldenport said this is supported by the Supramax FFA for the remainder of 2014, which is currently trading at $12,600 per day compared to the BSI average timecharter rate year-to-date of $9,717 per day.

“We continue to expect that for 2014 as a whole we will employ our vessels on better terms than 2013 when the BSI average timecharter rate was $10,328,” it added.

The Goldenport fleet consists of seven supramaxes, two of which are jointly owned with Glencore, as well as a single post-panamax bulker and a handymax unit.

Its fleet also includes seven containerships ranging in capacity from 5,551-teu down to feederships of 976-teu capacity.