Owner and operator posts narrower losses in the third quarter mainly due to sustained improvement in the dry bulk market. But while small gas carriers showed resilience, the ethylene carrier market remained challenging.
Danish company sold a handysize bulker which will be delivered to its new owner this monthLAURITZEN, a Danish owner and operator of dry bulk and gas carriers, is confident the dry bulk market will continue its upward trend.
The handysize market “proved robust" in the third quarter, rising 12% from a year earlier, despite trade war concerns, stock market volatility and interest rate rises, the company said in a statement.
Four handysize bulk carriers were taken on medium-term time charter, with options, while another was taken on a long-term time charter, the Hellerup-based company said.
It sold a handysize bulker, which is expected to be delivered to its new owner this month.
“We increased our activity in the dry cargo period market by adding new time-charter tonnage to the fleet,” chief executive Mads Zacho said. “Despite trade war concerns, we remain optimistic in terms of further dry cargo market improvements as fleet growth is moderate,” he added.
Earnings before interest, tax, depreciation and amortisation in June to September amounted to a loss of $1.7m from a loss of $9.8m a year earlier, in part due to the sustained improvements in the dry bulk sector.
But conditions for its largest ethylene carriers remained challenging, Mr Zacho said, with the market 2% below the same period last year.
The market for small gas carriers “showed some resilience” with rates up 4%, while the market for pressurized vessels rose 3%, according to the company.
It took a gas carrier on medium-term time charter, while four 20-year-old gas carriers were financed through sale and leaseback agreements.