Asia-focused bulk shipping line Pacific Basin Shipping Ltd said on Monday that its 2005 net profit rose 42 percent amid robust regional trade, although weaker freight rates dampen the near-term outlook.
The Hong Kong-based company posted a net profit of US $147.1 million for the year ended December 31, in line with a mean forecast of HK$1.13 billion (US $145 million) by 10 analysts polled by Reuters Estimates.
Pacific Basin earned US $103.6 million in 2004. The company expects the market to become more volatile, with freight rates likely to continue weakening this year, it said in a statement. Analysts expect the company's profits to fall by roughly 30 percent this year, according to Reuters Estimates. Pacific Basin said it expected days of revenue usage for its "handy-size" vessels to increase this year by about 4.2 percent to 14,800 days.
The company said it has contracted for 61 percent of those expected revenue days at an average rate of $13,500 per day, a drop of 21 percent from its average rate of $17,100 per day in 2005. Shares of Pacific Basin closed on Monday up 1.92 percent at HK$3.975 ahead of the results release. The stock was down by less than 1 percent in the 52 weeks through Friday.
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