Vessels sales hit $121.9 in one week, as firms count earnings

Vessels sales hit $121.9 in one week, as firms count earningsNew records from VesselsValue, an international maritime research firm, have revealed that shipping companies spent about $121.9 million on 12 new vessels in the last one week. The data obtained by media source recently, showed that vessels purchased between April 22 and 28th, were Bulker (nine), Tanker (two), and one Global Offshore Supply Vessel (OSV).

The Bulkers costs $90.3 million, while Tankers costs $23.5 million. The OSV went for $8.1 million. This is lower than the vessels sale in the previous week, which stood at $258.8 million.This is coming as several shipping companies are now counting their earnings for the first quarter (Q1) of 2019.Despite a rise in volumes and revenue, the net profit of Hong Kong-based port operator, COSCO Shipping Ports, plunged in Q1 2019.

For the three months ended March 31, the company’s net profit was at $49.9 million, representing a drop of 27.9 per cent compared to the same period last year. However, revenues rose by 4.1 per cent year-over-year, reaching $247.7 million, while total throughput increased by 5.6 per cent to 28.73 million TEU.

“Although there are still uncertainties in the global economy in 2019, the market expects that Sino-US trade war may reach agreement, low interest rates environment continues and China and Europe will continue to strengthen cooperation to promote ‘Belt and Road Initiative’, which may gather momentum of growth for global economy,” COSCO concluded.

Also, Hong Kong-based Orient Overseas Container Line (OOCL), delivered stronger revenues in Q1 2019, with the largest rise experienced in the Trans-Atlantic trade.For the quarter ended March 31, 2019, OOCL’s revenues increased by 5.9 per cent to $1.46 billion from $1.37 billion reported in the same quarter a year earlier.

Also, National Shipping Company of Saudi Arabia (Bahri), delivered a stronger net profit in Q1, as the company’s net profit rose 45 per cent to SAR 179.3 million ($47.8 million) compared to SAR 123.1 million ($32.8 million) reported in the three months ended March 31, 2018.Operational profit was at SAR 377.1 million for the quarter, rising by 46 per cent from SAR 256.9 million seen a year earlier.

Bahri explained that the rise in profit was driven by the improvement in some of its business units, and the increase in the transportation rates in general despite the increase in financing cost.

Meanwhile, the Danish shipping group, A.P. Moller-Maersk, forecasts higher profits in 2019 after delivering improved results in 2018.For 2019, Maersk expects EBITDA of around $5 billion including effects from IFRS 16, and around $4 billion excluding effects from IFRS 16.“Maersk’s guidance for 2019 is subject to considerable uncertainties due to the current risk of further restrictions on global trade and other factors impacting container freight rates, bunker prices and foreign exchange rates,” the company said.

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