Rickmers Swings to a $11.1 Million Profit

Rickmers Maritime Trust swung to an $11.1 million profit in the third quarter from a $54.6 million loss a year ago, as the Singapore-based container shipowner boosted charter revenue and trimmed financing costs.

Total charter revenue was up 4 percent at $38.2 million, mainly because the daily hire rate for a 5,060 20-foot equivalent units ship jumped to $23,888 from $8,288 in the third quarter of 2010.

The trust, which operates ships for the Hamburg-based Rickmers Group, made a net profit of $29 million in the first nine months against a $48.6 million loss in the 2010 period on revenue up 1 percent at $112 million. Financing costs were cut 10 percent to $10.8 million from $12 million a year ago, as the trust further reduced its outstanding bank loans to $670.9 million at September 30 from $635.1 million at the end of 2010.

“We believe that our improved financial position and long-term charter leases will stand us in good stead to weather the challenging market conditions and continue to generate steady cash flow,” said chief financial officer Gerard Low. “But we are also mindful of developments in the global economic climate, and their potential impact on our industry. We will devote careful attention to risk management and remain focused on deleveraging our balance sheet.”

Rickmers currently operates 16 ships ranging from 3,450 TEUs to 5,060 TEUs with an average charter rate of $25,270 per day. The trust cancelled a $920 million container ship order in 2010.

-- Contact Bruce Barnard at brucebarnard47@hotmail.com.