Danish bulker and ferry owner Clipper Group has turned in a loss for 2017 due to ship sales and the reorganisation of its business.
The company said in its annual report: "While all underlying activities experienced growth and had positive developments, operating result is negatively impacted by the reorganising of the underlying business and the sale of vessels."
Clipper Group does not publish its results, but Clipper Group A/S, which owns the ro-paxes, revealed an operating loss for 2017 of $12m compared to profit of $10m in 2016.
Impairment losses and losses from the sale of fixed assets accounted for $14m.
The net loss of $19m was caused in part by unrealised exchange rate losses. The company lost $13m in 2016.
Revenue was down at $218m from $221m in 2016.
Last year, the group consolidated its activities into three primary locations: Copenhagen, Houston and Hong Kong. It closed several other offices worldwide.
In October, the owner sold 16 ships as part of a refinancing deal with lenders.
The company told TradeWinds that the disposals included its last four multipurpose carriers and certain bulkers.
And in January, Asia Energy Logistics acquired two handysize bulkers from Clipper Group for $20.6m.
The Hong Kong-listed company said it had agreed to acquire the 32,000-dwt Clipper Selo and Clipper Panorama (both built 2011).
Bulkers getting better
Group CEO Peter Norborg said of the core bulker operations: “2017 turned out to be a significantly better market than 2016, and 2018 started on a positive note with overall earnings across all segments averaging at a six-year high.
"In addition, we continue to welcome new business partners into our dry bulk pools."
Clipper told TradeWinds its total operated bulk fleet has grown around 50% during the last one and a half years, reaching 151 handysize and supramax vessels as of 30 May.
The fleet is a mix of long and short-term charters, voyage charters, pool vessels and partly-owned vessels.
The total count of pool vessels is 78, of which 57 are from external partners.
The largest is the Logger pool with 33 bulkers, but it does not reveal the names of third-party owners.
In December, Clipper entered into a strategic partnership for bulkers with V.Group's Dania Ship Management and sold the majority of its shares in Clipper Fleet Management.
It remains a shareholder in Dania Ship Management Bulk.
The partnership included the transfer of 28 shore-based employees and around 1,000 seafarers to Dania.
Ferries prosper
The equity ratio for Clipper A/S "is still solid" at 43%, from 45% the year before, Clipper said.
Seatruck Ferries continued its "strong pace" in 2017 with 10 ships, the group added.
The total number of units, including trade cars, grew another 6%, while freight volumes grew 10%.
Seatruck has had the largest year-on-year growth among all its competitors and now holds 20% of the total Irish Sea ro-ro market, it said.
Danske Faerger also increased activity and earnings.
The number of cars grew by 6.3% to 1.19m and the number of passengers by 4.3% to 4.46m.
Revenue was up 4.3% and the bottom line increased from DKK 44m to an "impressive" DKK 124m ($19.47m).
During the year, it lost the state ferry contract for Bornholm.
"This has resulted in extraordinary expenses related to redundancy costs 2018 onwards," it said.
The group sold the last two of four ships sailing to Bornholm.
All four vessels will continue to sail for Danske Faerger until September 2018, when the company ceases to operate the Bornholm routes.
