Rickmers fourth quarter profit declines 23pc

SINGAPORE shipping company Rickmers Maritime has posted profits for the fourth quarter ended December 31, 2008, of US$7.2 million, down 23 percent from the $9.4 million recorded for the same quarter in 2007.

This is despite the containership owner's fourth quarter revenues increasing 76 per cent to $29.56 million, up from $16.79 million for the same period a year earlier, reports Newark's Journal of Commerce.

Revenues were eight per cent lower than forecast mainly due to the late deliveries of three containerships, the company said.

Full year revenues for 2008 were $102.1 million

Rickmers said the lower-than-expected earnings were due to the negative effects of the global economic crisis, which has driven charter prices down to all-time lows and had a negative impact on the business of its major charter customers, including Maersk, CMA CGM, Italia Marittima, MOL and Hanjin.

The affiliate of Rickmers-Linie reported full year 2008 profits of $34.4 million, compared to $20.6 million for the partial year ended December 31, 2007, the report added. However, it notes that Rickmers Maritime became a publicly listed company on the Singapore Stock Exchange in 2007, so the year-to-year comparison is not meaningful, the company said.

Source: Schednet