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PR Newswire
29-02-2012, 09:11 PM
poor container and tanker shipping markets are causing stxpo to remain in the red. higher finance cost also contributed to the losses. they could've turned a profit for FY11 based on their dry-bulk and car carrier operations, if they didn't have exposure to the container and tanker market.
this year looks to be another tough year for shipping. stxpo has performed pretty okay over the past 3 difficult years. when the issue of overcapacity eventually sorts itself out, stxpo should emerge as a winner.
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Published February 29, 2012
STX Pan Ocean surprised the market by pulling off a US$47 million profit in the October-December 2011 period, helped by the strength of the dry-bulk market in the final quarter of the year. Its fourth-quarter profit was nearly seven times that of the US$7 million profit in the year-ago period.
However, the South Korean shipping company ultimately could not escape the fate of other shipping companies worldwide and reversed into losses attributable to shareholders of US$19.39 million for the full year from a profit of US$69.86 million the previous year.
Full-year revenue at STX Pan Ocean also slid 7.4 per cent due to the weaker shipping market, to US$5.18 billion from US$5.59 billion last year.
Fourth-quarter turnover was down 12 per cent to US$1.32 billion from US$1.49 billion.
Losses per share stood at US$0.09 for FY 2011.
STX Pan Ocean pulled off operating profits at its bulk carrier and car carrier & LNG carrier divisions of US$48 million and US$26.8 million, respectively.
However, they were not enough to surmount the operating losses in its container shipping and tanker divisions, which posted US$46 million and $48 million of losses.
Another item that chipped away at STX Pan Ocean's bottom line was the higher finance costs, which rose 48 per cent to US$88.6 million from US$59.9 million in fiscal 2010.
While STX Pan Ocean enjoyed a strong fourth quarter, it does not foresee Q1 2012 - a traditionally slower quarter for iron ore and coal trades - to pan out in the same way.
'Capesize is unlikely to stay firm in the first quarter due to high iron ore port inventory, property tightening measures, growth slowdown in China,' warned the company.
STX Pan Ocean said ship scrapping - it is projected 24 million deadweight tonnes of bulkers would be scrapped in 2012 - may alleviate some of the low-rate pains emanating from a glut of bulk carriers on the oceans.
'Despite all downside risks and positive factors, we would like to point out that the shipping is, and always will be, cyclical market,' it said. 'A shipping company (that is) well-experienced and prudent with their cash can find opportunities despite the tough times.'
STX Pan Ocean announced a final dividend of 7.1 US cents per ordinary share before tax.
It closed down 10 cents at $8.50 yesterday.
this year looks to be another tough year for shipping. stxpo has performed pretty okay over the past 3 difficult years. when the issue of overcapacity eventually sorts itself out, stxpo should emerge as a winner.
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Published February 29, 2012
STX Pan Ocean surprised the market by pulling off a US$47 million profit in the October-December 2011 period, helped by the strength of the dry-bulk market in the final quarter of the year. Its fourth-quarter profit was nearly seven times that of the US$7 million profit in the year-ago period.
However, the South Korean shipping company ultimately could not escape the fate of other shipping companies worldwide and reversed into losses attributable to shareholders of US$19.39 million for the full year from a profit of US$69.86 million the previous year.
Full-year revenue at STX Pan Ocean also slid 7.4 per cent due to the weaker shipping market, to US$5.18 billion from US$5.59 billion last year.
Fourth-quarter turnover was down 12 per cent to US$1.32 billion from US$1.49 billion.
Losses per share stood at US$0.09 for FY 2011.
STX Pan Ocean pulled off operating profits at its bulk carrier and car carrier & LNG carrier divisions of US$48 million and US$26.8 million, respectively.
However, they were not enough to surmount the operating losses in its container shipping and tanker divisions, which posted US$46 million and $48 million of losses.
Another item that chipped away at STX Pan Ocean's bottom line was the higher finance costs, which rose 48 per cent to US$88.6 million from US$59.9 million in fiscal 2010.
While STX Pan Ocean enjoyed a strong fourth quarter, it does not foresee Q1 2012 - a traditionally slower quarter for iron ore and coal trades - to pan out in the same way.
'Capesize is unlikely to stay firm in the first quarter due to high iron ore port inventory, property tightening measures, growth slowdown in China,' warned the company.
STX Pan Ocean said ship scrapping - it is projected 24 million deadweight tonnes of bulkers would be scrapped in 2012 - may alleviate some of the low-rate pains emanating from a glut of bulk carriers on the oceans.
'Despite all downside risks and positive factors, we would like to point out that the shipping is, and always will be, cyclical market,' it said. 'A shipping company (that is) well-experienced and prudent with their cash can find opportunities despite the tough times.'
STX Pan Ocean announced a final dividend of 7.1 US cents per ordinary share before tax.
It closed down 10 cents at $8.50 yesterday.