Thursday 30 May 2024
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KUALA LUMPUR (Nov 22): Malaysian Bulk Carriers Bhd (Maybulk) reported a net profit of RM113.58 million for the third quarter ended Sept 30, 2021, compared with a net loss of RM5.95 million a year prior, on higher charter rates, and lower operating expenses from a smaller fleet size and vessel disposal. 

The dry bulk carrier operator saw earnings per share of 11.36 sen, versus a loss per share of six sen in the same quarter last year.

Quarterly revenue grew 37.55% to RM58.68 million, from RM42.66 million previously, the group’s bourse filing showed. 

For the first nine months of the year, the group booked RM160.64 million in net profit, compared with a net loss of RM29.0 million in the previous corresponding period, while revenue grew to RM158.92 million from RM133.99 million.

The turnaround was achieved by a non-recurring gain on disposal of property, plant and equipment of RM98.01 million and gain on de-recognition of a joint venture of RM6.87 million, against a loss on liquidation of subsidiaries of RM539,000 for the nine-month period.

Maybulk had completed the disposal of a handy-size vessel, M.V. Alam Sejahtera, and two supramax-size vessels, M.V. Alam Molek and M.V. Alam Madu, with total net proceeds of RM269.94 million, which resulted in a total gain on disposal of RM98.01 million. 

Charter rates for the group increased 114% to US$17,225, from US$8,067 last year, while hire days reduced by 36% to 1,928 days from 2,990 days due to smaller fleet size.

On its prospects, the group said the global economy has experienced a firm rebound in 2021, and seaborne dry bulk trade is expected to grow at 1.7% next year. 

“This rebound in the dry bulk market has seen freight rates hit a decade high and this has been exacerbated through stringent Covid-19 protocols enforced at various ports, particularly in China, creating supply chain bottlenecks. 

“Changes to trade patterns such as Chinese coal sourcing have been accretive in tonne mile terms. All these factors are set against a backdrop of historically low fleet growth due to the poor dry bulk market in the last decade,” said Maybulk.

However, the group noted that dry bulk charter rates have softened notably since late October with China restricting steel output, as well as imposing a cap on coal prices for domestic suppliers. Ship sale and purchase activities have also slowed down, as potential buyers are holding back in anticipation of a correction in asset prices. 

The group expects freight rates to remain volatile going into 2022, with global growth likely to slow down from 2021 levels, despite the current port congestion and logistics inefficiencies.

Shares of Maybulk traded half sen or 0.84% higher at 60 sen per share on Monday (Nov 22), giving the group a market capitalisation of RM600 million.

Edited ByS Kanagaraju
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