Finnish bulker group Aspo has raised extra funds after taking a big hit from the coronavirus in the first quarter.

The company said operating unit ESL Shipping's general operating environment "deteriorated sharply" during the period.

"The global coronavirus pandemic and related measures are causing significant changes in Aspo's operating environment," the shipowner added.

Revenue was down due to a decline in raw material prices and rates in the shipping business, in addition to weakening customer demand.

Charter figures hit

Charter numbers were significantly affected by the restrictions caused by the pandemic in China at the beginning of the review period, ESL said.

"The extension of restrictions to other market areas during March increased uncertainty in the assessment of industrial customers' production and transportation volumes for 2020," the company added.

Transport volumes for industrial customers decreased in the first quarter of 2020 in both the steel industry and the energy sector.

Business for its smaller vessel category remained at a normal level, however.

ESL's operating profit fell to €2.3m ($2.51m), against €3.2m in the same three months of 2019, and revenue decreased to €42.7m from €43.7m.

New cash secured

Aspo said it had issued new capital securities worth €20m at a fixed interest rate of 8.75%.

It has previously indicated it would sell €15m.

The company also launched an offer to buy back the outstanding €25m, 6.75% issue sold in May 2016.

Noteholders tendered €18.4m by the deadline, it said.

Aspo was also considering whether and when to pay its 2019 dividend of €0.11 per share.

Group profit stood at €4m, down from €4.9m a year earlier.

Free cash flow remained strong at €13.6m, however, "which can be considered an exceptionally good performance for the first quarter," ESL added.

The company is withdrawing its outlook guidance for 2020 made on 13 February.

"Due to the rapidly changing coronavirus situation, an accurate assessment of the impact of the pandemic on business is not yet possible to provide," Aspo said.