Arne Blystad-backed Songa Container has emerged from the second quarter well placed to capitalise on a boxship recovery.
The restructured containership owner cut its net loss to $4.2m from $8.5m in the same period of 2019, while revenue from its 15 ships increased to $8.2m against $6.2m.
The six-month loss now stands at $12.8m.
Its capital expenditure programme is now over, after it indefinitely postponed its last scrubber installation on the 2,007-teu Songa Iridium (built 2008) due to unfavourable market conditions and a need to preserve cash.
The exhaust cleaning unit is now being marketed for sale, after it was paid for and delivered to Songa.
Charter market collapsed
Songa said demand entered "hibernation mode" during March and April, with sailings blanked and the period charter market collapsing.
"This market imbalance has, to a certain degree, been corrected during the past six to eight weeks, with volumes shipped coming up and port-call statistics showing an increased number of port calls, signalling increased macro-economic activity," the company said.
The proportion of the global fleet lying idle fell to 7% from 11% as of mid-July, and has continued to drop since.
"Uncertainty of the most recent upswing in sentiment remains, and is most notably being demonstrated in the illiquid sale-and-purchase market," Songa said.
The company has no plans to increase the fleet further from its current level.
Ebitda in the second quarter was $1.9m, against a loss of $500,000 in 2019.
Songa achieved average rates of $7,840 per day, compared to $7,60 per day in the first three months of the year.
Cash stood at $9.1m, down from $16.9m as of 31 March.
Backing from investors
Earlier this year, a group of 10 shareholders including Blystad and Klaveness Invest pumped in another $5m by purchasing new shares.
They also agreed to put in an extra $4m after bondholders decided on an amendment to an issue.
At the end of April, Songa Container had warned it faced a potential breach of a bond covenant as it warned of charterer "distress" in the coronavirus crisis.
But bond maturity dates have now been extended by 18 months to June 2023 and a waiver of a loan-to-value covenant has been put in place until the end of 2021.
