Lower Q1 profit, confident outlook for Precious Shipping

August 04, 2014

Precious Shipping reported a lower first quarter profit due to lesser one-off gains from newbuilding cancellations, and is confident about the outlook for dry bulk shipping.
Precious reported a 2014 first quarter net profit of $4.27m down from $9.33m in the first quarter of 2013, however, excluding one-time gains the company lost $4.59m in the first quarter of last year.
Average earnings for handysize vessel in the first quarter of 2014 were $9,024 per day, and $10,068 per day for suprmaxes, rising from $6,588 and $9,023 respectively in the first quarter of 2013.
Precious Shipping repeated its optimistic view of the dry bulk market based on an end to double-digit fleet growth and still strong demand for dry commodity shipping.
“The trend in the BDI for 2014 will be up and will continue in the upward direction in 2015 and, likely, first 2 to 4 quarters of 2016. Within this upward trend we will experience extreme volatility, just as we are seeing right now, with lots of ups and downs,” the company said.