Thorsen Shipping has been stung by the collapse of bunker prices in the first quarter despite outperforming rate indices by 25%.
It booked an unrealized loss of THB 140.8m ($4.4m) from a change in the fair value of derivatives, mainly from bunker swaps.
As a result, the Thai-backed bulker owner reported a first quarter loss of THB 123.9m against a profit of THB 113m a year ago.
“Economic disruption brought about by the Covid-19 pandemic has led to a slowdown of global trade,” said Chalermchai Mahagitsiri, president and chief executive of parent company Thoresen Thai Agencies (TTA).
“While our top priority has been to prevent the spread of Covid-19 pandemic for the health and safety of our employees at the headquarters and on-board ships, we are working hard to preserve business continuity as well as we can despite all the current uncertainties.”
Looking ahead, Thoresen Shipping said there was potential for improved dry bulk trade trends in the second half of the year and into 2021, with a rebound of 5% tentatively projected next year, against fleet growth of 2%.
“However, there remains significant uncertainty over the demand outlook due to Covid-19,” it added.
