Pan Ocean has reported a 55% year-on-year plunge in first quarter profit despite a rise in revenue, due mainly to the absence of a one-off gain recorded for the year-ago period.
Net profit for the first three months was registered at $27.62m, down from $61.4m in the same period of 2016.
The reduced first quarter profit was due to the recognition of a one-off non-operating gain of around $51m in the first quarter of 2016 from its debt restructuring, offset by around $18m loss take for impairment charges.
Revenue for the quarter ended 31 March 2017 stood at $452.88m, down 20.2% from $376.64m in the previous corresponding period.
The dry bulk shipowner noted that the market continues to battle “chronic oversupply” amid low demand for raw materials.
“However the average BDI for the first quarter of 2017, which is usually known as the weakest quarter in a year, recorded 945 (points) as more bulkers were phased out and as global seaborne transportation increased,” Pan Ocean commented, recalling that the average BDI for 2016 was 673, the lowest in annual average since 1999.
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