News Column

Goldenport Swings To Second Quarter Net Profit

August 29, 2014

Samuel Agini



LONDON (Alliance News) - Goldenport Holdings Inc said Friday that it swung to a net profit in its second quarter, including a USD3.1 million gain from the sale of 1995 built container vessel MSC Socotra.


In a statement, the shipping company, which owns and operates a fleet of dry bulk and container vessels, said it made a USD454,000 net profit in the three months ended June 30, compared with a USD5.9 million net loss in the corresponding period a year earlier.


Revenue fell to USD12.3 million from USD15.0 million, which was less than the corresponding decrease in the average number of vessels to 14 from 18, due to a shift in the fleet mix.


"Our fleet was fully employed during the quarter with the utilisation rate reaching 99%. The time charter equivalent rate for the fleet was stable, while average daily operating expenses dropped by 11% due to the retirement of older, less efficient tonnage. This resulted in a widening of the earnings before interest, tax, depreciation and amortisation margin by 2.6 percentage points to 25.6%," Chief Executive John Dragnis said in a statement.


The CEO added that Goldenport Holdings has continued to employ its fleet on a short-term basis under three to six month time charter agreements in anticipation of a recovery.


"In the past few weeks we have experienced an improvement in dry bulk rates which bodes well for the remainder of the year," Dragnis said.


Towards the end of the second quarter, Goldenport postponed a proposed equity placing.


"There is a possibility that the transaction can be completed by year-end. As such, the agreements to acquire option interests in respect of five Green Dolphin Handysize newbuildings from a related party have been extended until year-end. Their exercise is subject to renewed shareholder approval," Dragnis said.


Overall, Goldenport's first half net loss narrowed to USD1.4 million from USD8.3 million.


Goldenport shares were Friday quoted up 1.6% at 362.75 pence.








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Source: Alliance News


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