Finnish shipping group Aspo has become one of the few companies to risk a financial forecast since Covid-19 struck earlier this year.
The owner of bulker company ESL Shipping ditched predictions in April, due to the uncertainty and rapidly changing market environment caused by the pandemic.
But now, as a result of improved visibility, it is providing guidance for the full year.
Aspo believes group operating profit will be between €12m ($14.25m) and €16m, compared to €21.1m in 2019.
Despite improved visibility, the pandemic and related restrictions have resulted in the guidance range being wider than customary, Aspo said.
"During the year, ESL Shipping has suffered severely from cuts in heavy industrial production capacity in Scandinavia," the group added.
"ESL Shipping's result is estimated to be negative in the third quarter of 2020, but its fourth quarter is estimated to be clearly profitable as a result of the end of customers’ production shutdowns and growing transport volumes."
Laying up and redelivered
The shipowner was busy laying up vessels and handing back chartered ships in the second quarter as it came to terms with a big slump in bulker cargo demand.
Volumes decreased "exceptionally steeply" to 3m tonnes in the second quarter, from 4.1m tonnes a year ago, the company said.
ESL's operating profit was cut to €600,000 from €2.6m a year ago, as revenue plunged to €32.9m versus €42.6m.
Boxship giant AP Moller-Maersk has been the most high-profile shipowner to produce a forecast following its second quarter results last month.
The Danish carrier expects to earn between $1bn and $1.5bn more this year than initially forecast.
