Pacific Shipping: The worst is over
- Author:Kyrie
- Source:Sunny
- Release Date:2020-09-19
Affected by the new coronavirus epidemic, Pacific Shipping turned from profit to loss in the first half of the year. However, the company believes that the worst has passed and its performance will improve in the second half of the year.
In the first half of this year, Pacific Shipping lost US$222 million and made a profit of US$8.2 million in the same period last year. Earnings before interest, taxes, depreciation and amortization (EBITDA) for the first half of the year was US$79.2 million, a year-on-year decrease of 21.7%. The average daily income of handy and super handy bulk carrier time charter contracts is higher than the market index of US$2270 and US$4250.
Pacific Shipping explained that due to the epidemic, entry and quarantine restrictions are required everywhere, resulting in a substantial reduction in the number of ships the company enters and exits China, which is the main reason for the decrease in ship supply.
However, Pacific Shipping pointed out that although the freight volume in the first 5 months of this year has remained lower than last year, the freight volume has rebounded significantly since June. Therefore, Pacific Shipping maintains confidence in the company's prospects and believes that the shipping industry has passed the most difficult In the period, I believe that the demand for the shipping industry in the future market will increase.
The company said that China's huge population is of great help in promoting the recovery of market demand in the shipping industry. With the gradual recovery of China's economic activities, the freight volume of grain, dry cargo and iron ore has increased compared with last year. However, because the epidemic is still unstable, although performance is expected to rebound in the second half of the year, it is difficult to be sure that there will be a strong rebound.
Pacific Shipping said that in the future, the company will continue to optimize the handy and super handy bulk carrier fleet, and concentrate on buying second-hand ships and selling old ships for profit. In addition, the company hopes to strengthen the relationship with customers and increase the scale of freight.
In the first half of this year, Pacific Shipping lost US$222 million and made a profit of US$8.2 million in the same period last year. Earnings before interest, taxes, depreciation and amortization (EBITDA) for the first half of the year was US$79.2 million, a year-on-year decrease of 21.7%. The average daily income of handy and super handy bulk carrier time charter contracts is higher than the market index of US$2270 and US$4250.
Pacific Shipping explained that due to the epidemic, entry and quarantine restrictions are required everywhere, resulting in a substantial reduction in the number of ships the company enters and exits China, which is the main reason for the decrease in ship supply.
However, Pacific Shipping pointed out that although the freight volume in the first 5 months of this year has remained lower than last year, the freight volume has rebounded significantly since June. Therefore, Pacific Shipping maintains confidence in the company's prospects and believes that the shipping industry has passed the most difficult In the period, I believe that the demand for the shipping industry in the future market will increase.
The company said that China's huge population is of great help in promoting the recovery of market demand in the shipping industry. With the gradual recovery of China's economic activities, the freight volume of grain, dry cargo and iron ore has increased compared with last year. However, because the epidemic is still unstable, although performance is expected to rebound in the second half of the year, it is difficult to be sure that there will be a strong rebound.
Pacific Shipping said that in the future, the company will continue to optimize the handy and super handy bulk carrier fleet, and concentrate on buying second-hand ships and selling old ships for profit. In addition, the company hopes to strengthen the relationship with customers and increase the scale of freight.