Better result from Belships

NORWEGIAN owner Belships made a Q2 operating profit of US$2.85m, up from $2.10m in Q2 last year on revenue of $13.37m, up from $11.77m. In a statement Belships says: “The increase in operating income and the positive result performance are mainly related to positive developments in Elkem Chartering's handysize operations.”

It adds: “Growth in China continues to force dry cargo rates upwards. The demand for dry bulkers rose by around 7% on an annual basis, which is just above 1% more than the increase in supply. Despite the authorities' efforts, the queue of ships waiting for cargo in Australia has not been reduced to any significant extent. Elkem Chartering's time charter vessels were off-hire for around 60 days due to ordinary dry-docking in the 2nd quarter. In spite of this, earnings from Handysize operations improved. The two handymax vessels continued on their charters with results as expected. At the end of June the newbuilding M/S Northern Light was delivered to Elkem Chartering on a 5 years charter, with the charterer's option for an extension of two years. The rate is very favourable compared to current market rates.”

Looking ahead the company says that Elkem Chartering expects a contribution from handysize operations in the 2nd half-year in line with what was achieved in the first half. Belships own tonnage and Elkem Chartering's two handymax vessels are expected to produce contributions corresponding to those of the first half-year, with certain reservations concerning unexpected interruptions.”