Maybulk continues to encounter choppy waters in Q2

PETALING JAYA: Malaysian Bulk Carriers Bhd's (Maybulk), which expects to report a loss for FY2016, saw its net loss for the second quarter ended June 30, 2016 widen to RM40.33 million from a net loss of RM21.13 million a year ago, due to losses in its associate PACC Offshore Services Holdings Ltd (POSH) and joint ventures.
Maybulk's revenue fell 5% to RM55.35 million compared with RM58.14 million in the previous corresponding period.
On its prospects, Maybulk said the dry bulk market continues to remain difficult.
"Although the spot rates for dry bulk have increased from Q216's average, there is continued nervousness in the global economy and the recovery of the dry market remains uncertain."
In view of the prolonged downturn in dry bulk market, the group decided to sell some of its older vessels. In the first half of 2016, the group sold four vessels – two bulkers and two tankers.
In relation to the oil and gas sector, capital expenditure by oil majors has slowed significantly and oilfield operators continue to seek further reductions in their operating cost. This has exerted downward pressure on vessel utilisation and charter rates, which will continue to negatively impact POSH's financial performance.
"All considered, the board is of the view that the outlook for the remainder of the year remains difficult and Maybulk is expected to report a loss for FY2016," it said.
For the six months, Maybulk saw a wider net loss of RM64.41 million from a net loss of RM43.87 million a year ago mainly due to negative contribution from POSH and the persistent weak dry bulk market. Revenue fell dipped to RM108.85 million from RM109.88 million in the previous corresponding period.