Rickmers Maritime sees 2012 profits fall 32pc, but outlook stays upbeat
RICKMERS Maritime, a containership owner, has recorded a 32 per cent decline in net profits in 2012 against the previous year, to US$27.6 million.
This comes as charter revenues fell three per cent year on year to $144.3 million and operating cash flow was down one per cent to $109 million.
Worse, the Singapore-based company does not foresee improvements in time charter rates or vessel values in the short term. It attributed this to the significant number of ships scheduled for delivery over the next 12 months, meaning oversupply of capacity is likely this year.
The decline in net profit was in part caused by a marginal decline in fourth quarter charter revenue, an increase in operating expenses and one-off non-cash impairment charges to vessel values.
Last year the company made repayments of $52 million to lower the face value of outstanding bank loans to $569.9 million, as part of its accelerated debt repayment programme that strives to "deleverage the business and achieve a robust financial structure".
Looking ahead, Rickmers Trust Management CEO Thomas Preben Hansen is optimistic the company will be protected from any market overcapacity over the coming year.
"Rickmers Maritime fleet has $476.7 million of secured revenue between January 1, 2013 and the expiry of the last charter party contract in 2019. Barring any unforeseen circumstances, we believe our leases will continue to generate stable and on-going cash flows," Mr Hansen said, reported London's Containerisation International.
The company's fleet of 16 containerships is 100 per cent chartered on fixed-rate time charters with an average remaining charter period of 3.2 years and a current average net daily charter rate of $25,300 per vessel.