Container ship owner-charterer Rickmers Maritime reported a 4 percent rise in second quarter net profit but warned that charter rates and vessel values may be hurt this year by overcapacity and a weakening global economy.
The Singapore-based company said its net profit rose to US$8.91 million from $8.55 million a year earlier. Cash flow from operations slipped 4 percent to $26.61 million.
Charter revenue decreased 4 percent to US$36 million, mainly due to the scheduled dry docking of one ship, 3.5 days of unscheduled off-hire for repairs, and a lower charter rate on the Kaethe C. Rickmers’ new contract with Mediterranean Shipping Co.
CEO Thomas Preben Hansen said Rickmers Maritime’s 16 ships are on fixed-rate time charters with an average remaining period of 3.6 years, and “will continue to generate stable, ongoing cash flows.” Rickmers’ average daily net time-charter rate this year averages nearly $25,000 per vessel.
Hansen warned, though, that industry fundamentals are mixed. “It has been encouraging to witness the liner industry becoming more disciplined over the past few months, leading to significant freight rate increases in the main trade lanes,” he said. “However, the fundamental challenges of capacity oversupply and weakening global economy could continue to impede a near-term recovery of charter rates and vessel values.”