Thai bulkers in Q1 and optimism

Precious Shipping Plc Q1
Precious Shipping Plc. (PSL) boasted a first quarter profit of $12.3m, from a loss of $3.7m a year ago. PSL said average earnings per ship/day in the quarter were $12,157, the highest Q1 rate in a decade.
PSL said dry bulk market should stay strong throughout 2021 and further on, thanks mainly to two contributors: very low fleet growth and worldwide monetary stimulus led by Chinese $667 billion, and followed by the majority of world governments summing up to some $20 trillion of allocated funds to counteract “pandemic” negative effects.
Precious operates a fleet of 36 bulker carriers of handy, supramax and ultramax types.

Thoresen Shipping Q1
TTA reported Q1 / 64 profit of 189.1 million baht, a 141% improvement. Total income increased 5% to 3,447.2 million baht, mainly due to the significant improvement in the maritime and offshore services sector. The average freight rate equivalent (TCE) increased by 46%.
Usually, the Baltic Index (BDI) in the first quarter is lower than other quarters each year. and lower than the previous quarter of the previous year according to seasonal factors. But it appears that the Baltic Index and freight rates in the first quarter of 2021 have soared to their highest levels in a decade. Due to the strong recovery in dry bulk trade As a result, Thoresen Shipping's average daily freight equivalent (TCE) rate has increased significantly.
As of March 31, 2021, TTA had total assets of Baht 31,813.9 million, increasing by 3% or Baht 784.6 million from the end of 2020, mainly due to an increase in property, plant, and equipment resulting from the acquisition of one second-hand vessel in January 2021.
For Thoresen Shipping, it is a great pleasure to produce such a great result. Independent maritime consultancy Liengaard   & Roschmann has reported Vesselindex performance for the third year in a row and ranks the best registered shipping companies with the best equivalent freight rates in 2020. Thoresen Shipping took second place, outperforming 23 other companies in the same business group. It also holds a position in the world's top 5 for 3 consecutive years.
Maritime Advisors, Liengaard & Roschmann have recently published for the third year running its Vesselindex Performance Report, ranking the listed dry bulk companies based on their TCE performance. Thoresen “Shipping is able to take 2ndplace, competing against 23 other listed Dry Bulk companies on their Time Charter Earnings (TCE) for 2020, and to finish in the top five performers in all three years of the Vessel Index Report.
http://www.thoresen.com/newsroom/20210513-tta-news2-en.pdf
Thoresen Thai Agencies Public Company Limited, or TTA, is a strategic investment holding company that is listed on the Stock Exchange of Thailand, with an investment policy to achieve growth through a balanced portfolio that is diversified both locally and internationally. Included in its current business portfolioare shipping, offshore service, agrochemical, food & beverage, and investment.
2012 data: Thoresen Shipping boasts a modern fleet of 24 owned Handymax and Supramax sized vessels, comprising an effective balance of 14 geared and grabbed fitted bulk carriers and 10 “open hatch box shaped hold” vessels.
In 2011 Thoresen Shipping carried in excess of 8M tons of cargo with approximately 670 port calls.

Comment:
PSL said dry bulk market should stay strong throughout 2021 and further on, thanks mainly to two contributors: very low fleet growth and worldwide monetary stimulus led by Chinese $667 billion, and followed by the majority of world governments summing up to some $20 trillion of allocated funds to counteract “pandemic” negative effects.
Thoresen is also very optimistic: “…other seasonal factors to help boost dry bulk trade,such as US corn exports, as well as President Joe Biden’s economic stimulus and infrastructure packages that benefit commodity demand…”
Industry media and analytics inflate optimism even higher: “From some of the lowest levels ever seen for dry bulk shipping the first half of last year there was a sharp rebound later in 2020, which has continued into 2021 and has seen the sector enjoying some its best earnings in a decade.”
It requires dedicated article (to be written soon) with analysis of freight rates rush, both in dry bulk and container sectors, but basically, optimism is built on sand of false assumptions and absolute misunderstanding (misinterpretation) of global economy general trend. Shipping industry sees what it wants to see, not the reality.
It should be interesting to analyze how seriously does crew change crisis affects Thai ship owners and their financial results. On the look of it, nation carriers all throughout the world suffered least of all, specifically in comparison with multinational majors.
June 16, 2021

FleetMon Logo

Need a FleetMon account? Sign Up now.

Your browser is out of date!

It is great that you want to track the seven seas! Unfortunatly your browser is out of date. To view our website correctly you need an up to date browser. It is a security risk for you to use an old browser by the way. Update your Browser now

×