Singapore’s Grindrod Shipping has booked a first-quarter profit of just over $29m, in what it describes as a historically strong start to 2022.
The bulker owner had 60% year-on-year growth in revenue to $110.2m as its handysizes and supramaxes/ultramaxes achieved average time charter equivalent rates per day of $22,201 and $24,385, respectively.
“The quarter was the strongest first quarter for charter rates for our ship types in over a decade and lays a solid foundation for the rest of the year,” said interim chief executive Stephen Griffiths.
“Despite the uncertainty in the global economy created by the Russian-Ukraine conflict, Covid lockdowns in China and the disruptions to traditional trade routes, the outlook for the dry bulk sector appears to remain positive.”
Griffiths said a healthy demand for minor bulk commodities and continued cargo spillover from tight container shipping markets, coupled with congestion and the smallest newbuilding orderbook in decades continue to lead to a tight supply/demand balance and strong freight rates.
Grindrod completed its withdrawal from the tanker market last week with the sale of the 50,100-dwt MR Matuku (built 2016) for $30m.
It also exercised a purchase option on the chartered-in 57,800-dwt supramax IVS Pinehurst (built 2015) for $18m. The bulker is said to be worth $26.5m.
Long-serving executive Martyn Wade stand down as CEO at the end of April. A permanent replacement has yet to be named.
This has led to speculation that a sale or merger of the US-listed company may be on the cards.
Sources recently told TradeWinds that Grindrod has been quietly exploring a possible sale or combination for several months.
London-listed Taylor Maritime Investments, which has built up its stake in Grindrod to 26.6%, has been touted as a potential suitor.
Grindrod Shipping’s Island View Shipping brand operates a core fleet of 15 handysize bulkers and 16 supramax and ultramaxes.
