Goldenport loses shine

A loss on newbuilding cancellations and slumping freight rates have sent Greek bulker and boxship owner Goldenport Holdings into the red.

The Paris Dragnis-led outfit also had to deal with reduced disposal gains, higher depreciation and a smaller fleet last year.

London-listed Goldenport did, however, sound a positive note on the dry-bulk market with steel consumption set to drive demand in 2010 which is likely to be another year of recovery for liner markets.

Paris Dragnis.

The dive in the global economy and knock-on negative impact on dry-bulk markets led the Greek to quash orders for two 57,000-dwt units at China’s Qingshan Shipyard. The orders had been placed in 2008 at a cost of $91.66m but cancellation cost the owner $18.8m.

On top of this Goldenport saw average daily time charter equivalent (TCE) rates for its entire fleet slip from $19,028 in 2008 to $13,424 last year with the drop in average daily vessel operating expenses nowhere near as pronounced.

The average fleet also shrank from 22 to 19 with utilisation down from 97.5% to 92% as on average two units were laid up last year.

Whereas the owner booked a gain of $36.49m on ship sales in 2008 this was slashed to $13.54m last year.

The result was to send revenues crashing from $154.97m to $94.01m, reversing a net profit last year of $87.58m into a loss of $1.36m.

Addressing the loss, Goldenport wrote in Tuesday’s bourse announcement that the dry-bulk industry had actually outperformed expectations in 2009, recovering from the meltdown in world markets as early as February. This year is likely to see transportation in the sector increase 8% as steel consumption climbs on growing demand, particularly in China.

Whereas the owner also sounded a generally positive note on container shipping it was a cautious one with the industry likely to remain in the recovery phase this year.

Despite the loss Goldenport remains intent on snapping up an unspecific number of bulkers after refinancing in August to make way for acquisitions.

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