Goldenport plunged deep into the red in the first half as it wrote down the book value of its containerships and bulk carriers, but the Greek shipowner said it is in a strong position to benefit from a market recovery.
The London-listed company booked a net loss of $51.3 million in the six months to June 30 against a year-earlier profit of $3.4 million as revenue shrank by 17.6 percent to $42.9 million.
Earnings before interest, tax, depreciation and amortization were down 43.3 percent at $14.56 million.
The Athens-based owner of 12 containers ships and 12 bulk carriers booked an impairment loss of $47.6 million, reflecting the write down in the value of some of its vessels.
There was an adjusted net loss of $3.73 million against net income of $3.37 million in the first half of 2011.
“Despite the very challenging conditions in both the dry cargo and container sectors as a result of the continued expansion of the world fleet at a time when demand is adversely impacted by lower levels of global industrial production, the company continues to successfully employ its vessels and to maintain high utilization for the majority of the vessels in its fleet,” said Goldenport CEO John Dragnis.
Current low freight rates combined with bank foreclosures, particularly impacting German KG funds, has resulted in the decline in asset values that has created attractive investment opportunities for companies with available capital, according to Goldenport. The company had cash reserves of $31.8 million on June 30.
Goldenport took advantage of current high scrap prices to book a $9.1 million gain on the sales of two aging bulk carriers and a containership.
The company announced this week the acquisition of a 1997 built containership with a capacity of 2,100 20-foot equivalent units for $5.2 million.
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