Thoresen Thai Agencies (TTA)’s shipping segment remained profitable in the third quarter on elevated time charter equivalent rates for supramaxes.
The Bangkok-based shipowner said Thoresen Shipping, its dry bulk division, brought in freight revenues of THB 1.7bn ($48.5m), up from THB 1.59bn in the same period last year. Its TCE rate for supramaxes came in at $13,700 per day on average.
Chief executive Chalermchai Mahagitsiri said: “The Baltic Supramax Index … averaged 1,320 points, up an average of 912 points from the previous year, driven by strong dry bulk demand and changes in vessel routing away from the Red Sea and Panama Canal.
“Time charter rates for Supramax vessels peaked at $15,252 per day and averaged $14,542.”
Vessel operating expenses were $4,540 per day.
Thoresen Shipping earned its parent company a net profit of THB 306m during the quarter, a jump from THB 275.5m a year ago but down from THB 530.3m in the second quarter of this year.
Offshore segment reports revenue rise
Revenue at TTA offshore subsidiary Mermaid Maritime increased to THB 5.22bn, up from THB 2.99bn a year earlier, due to a new decommissioning, transportation and installation project in the Gulf of Thailand.
As a result, Mermaid’s gross profit rose to THB 576.4m from THB 567.8m in the previous quarter.
Mermaid finished the third quarter with a “strong” contract orderbook valued at $814.1m, compared with$975.7m in the second quarter.
TTA’s total consolidated revenue, including non-shipping-related businesses such as fertiliser and food and beverage, came in at THB 8.77bn, up from THB 6.57bn a year earlier.
Mahagitsiri said market sentiment remains positive through the fourth quarter for dry bulk vessels, quoting Clarksons Research’s projections of dry bulk trade to grow by 2.7% in tons and 5.2% in ton-miles for the full year.
“Grain trade is projected a firm growth (+4%) due to improved exports from Ukraine and the US. Iron ore trade is expected to rebound firmly (+3.2%), driven by rising import volumes to China due to steady steel demand, ample supply and favourable prices,” he added.
Mahagitsiri also indicated that minor bulk trade, a key segment for supramaxes, is projected to grow by 2.8%, supported by robust steel products and bauxite trade and easing macroeconomic pressures in major regions, again referring to Clarksons data.
Thoresen Shipping owns a fleet of 22 supramaxes and two ultramaxes, averaging 55,900 dwt and 16.5 years.
