The Board of Jinhui Shipping and Transportation Limited is pleased to announce the unaudited condensed consolidated results of the Company and its subsidiaries (the “Group”) for the quarter and year ended 31 December 2014.
FOURTH QUARTER AND ANNUAL RESULTS
Revenue for the Fourth quarter of 2014 Declined 47% to US$ 30,154,000, comparing to US$ 56,374,000 for The last corresponding quarter in 2013.
The Company recorded a consolidated Net loss of US$ 68,427,000 For current quarter as compared to a consolidated net loss of US$2,882,000 For the last corresponding quarter in 2013. Basic Loss per share was US$ 0. 814 for the fourth quarter of 2014 while basic loss per share was US$ 0.034 for the last corresponding quarter in 2013. Revenue for the Year 201 4 Declined 39% to US$ 132,249,000 , comparing to US$ 217,502,000 for the Year 2013.
The Company Recorded a consolidated net loss of US$ 86,748,000 For the year 2014 while A consolidated net profit of US$ 25,399,000 was reported in The year 2013.
Basic Loss per share for the year was US$1.032 as compared to basic earnings per share of US$0.302 for the year 2013 .
The Considerable consolidated net loss for both the fourth quarter and the year 2014 were primarily attributable to the recognition of impairment loss of US$50,586,000 on certain owned vessels and reduced hire and freight revenue due to low freight rates in weak shipping market .
DIVIDENDS
The Board has resolved not to recommend the payment of any Final dividend for the year ended 31 December 2014 . As there is no interim dividend payable during the year, there will be no dividend distribution for the whole year of 2014.
REVIEW OF OPERATIONS
Fourth Quarter of 2014.
Dry bulk shipping market Environment continued to be weak despite global economic confidence has been improving in the fourth quarter of 2014.
Over the last couple of months, Dry bulk commodity market underwent a severe price correction and the fierce commodityies price battles provoked a shift in regional seaborne trade routes from Trans-Atlantic to Pacific regions And consequentially reduced the demand for dry bulk ton-miles.
Market Freight rates were under pressures by these short term turbulences while the oversupply of tonnages continued to hinder the recovery in the dry bulk shipping market.
Revenue for the quarter was US$ 30,154,000, representing a decrease of 47 % as compared to US$ 56,374,000 For the fourth quarter in 2013. The drop in revenue was mainly due To the large exposure to spot freight market while freight rates kept declining with the unexpected incongruity between demand and supply of tonnages , coupled with the expiration of certain high earning charter contracts in earlier months.
The average daily time charter equivalent rates (“TCE”) earned by the Group’s fleet dropped to US$ 8,350 for the fourth quarter of 2014 as compared to US$ 14,092 for the last corresponding quarter in 2013 when certain charter contracts were recently entered into with charterers at relatively low freight rates.