Our Performance in 2017
Our core dry bulk business generated a net profit of US$2.6 million (2016: net loss US$87.6 million) in a markedly better year
for dry bulk shipping. In the improved but still challenging market conditions, we generated daily earnings that outperformed
the BHSI and BSI indices and continued to maintain good control of our vessel operating costs.
Dry Bulk Operating Performance
|Dry bulk operating performance before overheads||19.6||37.1||56.7||(34.9)||>+100%|
|Overheads and tax||(25.9)||(28.2)||(54.1)||(52.7)||-3%|
|Dry bulk net profit/(loss)||(6.3)||8.9||2.6||(87.6)||>+100%|
|Dry bulk vessel net book value||1,756.6||1,791.5||1,791.5||1,650.8||+9%|
|+/- Note:||In our tabulated figures, positive changes represent an improving result and negative changes represent a worsening result. |
OUR DRY BULK CARGO VOLUMES IN 2017
Key Performance Indicators
Performance vs Market
- Our outperformance in 2017 compared to spot market indices reflects the value of our fleet scale and cargo book, and
our ability to optimise cargo combinations and match the right ships with the right cargoes to maximise our utilisation
and vessel earnings.
- We generated Handysize daily earnings of US$8,320 with daily costs of
US$7,660 on 53,360 revenue days. We
generated Supramax daily earnings of US$9,610 with daily costs of US$9,000 on 34,510 revenue days.
- Our Handysize and Supramax contributions returned to positive territory as we leveraged our business model to
outperform in the improved but still challenging market.
As part of our business model, we charter in vessels for short periods for combination with cargoes with the aim
of making a margin irrespective of whether the market is high or low. In low markets, these short-term positions
generally lower our reported TCE earnings while in fact making a valuable positive contribution. If we exclude the
vessel days attributable to this short-term operating activity and factor their positive margin into the TCE results
of our core fleet, then our restated 2017 Handysize and Supramax daily earnings would improve to US$8,410 on
44,750 days and US$10,100 on 19,640 days respectively
- We operated an average of 146 Handysize and 95 Supramax ships resulting in 12% and 17% increases in our Handysize
and Supramax revenue days year on year.
- During the year, we redelivered expiring long-term chartered vessels to gradually lower our charter-in costs, relying
instead on our growing fleet of owned ships supplemented by shorter-term and index-linked charters.
Future Earnings and Cargo Cover