Maybulk announced its earnings last night.And no, it was not a shocker. Not for me. Do refer to last September's posting (it's a must read) : Maybulk: Does poor corporate governance have a negative impact on a stock? ( I wonder why some consider Maybulk as an investment grade stock given it's horrific corporate governance! )
Today Maybulk was featured on BTimes: Maybulk confident of staying profitable
- Maybulk confident of staying profitable
By : GOH THEAN EU Published: 2012/02/29
MALAYSIAN Bulk Carriers Bhd (Maybulk) is expected to take advantage of the current depressed freight market by acquiring more vessels this year.
"We are monitoring the situation. We plan to reinvest our profits and to take opportunity of the current depressed freight market.
"If the current situation continues, we expect to see more shipping companies to be in financial distress and maybe face bankruptcy," said chief executive officer Kuok Khoon Kuan briefing yesterday.
He added that the value of vessels were at "rock bottom" and that buyers could "choose and pick" the vessels they want.
Maybulk, which now owns and operates a fleet of 17 vessels, including dry bulk carriers and product tankers, is due to take delivery of three new vessels this year, all of which are under long-term charters.
Currently, the industry is facing lower charter rates due to the oversupply of vessels in the market.
For Maybulk, the average charter rates of its dry bulk carriers were down by 36 per cent to US$16,519 (RM49,781) a day.
"The problem we are facing now is oversupply. There's still growth in the market but there's too much tonnage.
"During such times, too many players will be squeezed and there will be too many bloodbath," said executive chairman Teo Joo Kim.
Nevertheless, Teo believed that the situation will correct itself over time.
Kuok and Teo was speaking to the media and analysts during its full-year financial results briefing.
The company posted a fourth quarter net profit of RM16.81 million, a 75 per cent decline from the same quarter a year ago.
For the full-year, its net profit fell by 61 per cent to RM93.37 million. Full-year revenue declined by about 36 per cent to RM256.31 million.
"Although we reported lower numbers, we are thankful that we managed to stay profitable, especially in such challenging times," Teo said.