Jinhui Remains in Loss amid Volatile Markets

first_imgzoom Hong Kong-based shipping company Jinhui Shipping and Transportation Limited narrowed its full-year net loss to USD 189.09 million in 2016 from USD 378.74 million seen in 2015.The loss was mainly attributed to the impairment loss on owned vessels and impairment loss on assets held for sale.Furthermore, revenues for 2016 declined by 31% to USD 59.96 million from USD 86.30 million recorded in 2015.During 2016, Jinhui completed the disposal of eight vessels including two Panamaxes, five Supramaxes and one Handymax vessel.“The disposal of the eight vessels represented an opportunity for the group to readjust its fleet profile and reduce our operational risk exposures in current high-risk volatile markets and … will improve the liquidity position of the group,” Ng Siu Fai, Chairman of Jinhui, commented.In December 2016, Jinhui reached an agreement with four major lenders on loans related to 25 of the company’s vessels. It was agreed that only 50% of the installments due until the end of 2018 will be repaid, while the remaining amount will be repaid within two days after the end of the forbearance period in 2019.The company agreed in February 2017 to sell four Supramax bulkers to four entities controlled by compatriot Minyi (Tianjin) Ship Leasing for an aggregate price of USD 48 million.Earlier this month, Jinhui also sold its last Handysize dry bulk carrier to Inui Global Logistics for USD 15 million.“Although the market improved later in the year, we continue to see uncertainty and market volatility remaining as an operational risk to the group. In order to further reduce operational risk and liquidity risk, we believe it is prudent for the group to readjust the fleet size and lower the overall indebtedness and it is vital to remain financially nimble in today’s tough and ever-changing market environment,” Ng Siu Fai said.“The overall recovery in dry bulk shipping market requires a stronger demand and supply rebalance through slowing fleet growth, layups and scrapping of tonnages,” he added.Excluding the vessels sold and scheduled to be delivered to the new owners, Jinhui operates a fleet of two Post-Panamaxes and twenty-one Supramaxes.last_img

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