Grindrod told shareholders to expect a full-year 2016 loss, but said results through the second half of last year showed some improvement thanks to the recovery in dry bulk shipping rates.
The South African shipowner expects to report a headline loss between ZAR 455m and ZAR 465m ($34.7m and $35.5m) for the year. It reported a first half headline loss of ZAR 381m. Grindrod says the results reflect better volumes and rates in the second half of the year.
“The improvement in the dry bulk shipping rates from their lows in the first half and the continued good performance in the ship operating, coastal tanker and bunker barge businesses has positively impacted results,” the company said.
It said rates in the tanker market have also weakened due to high product stock levels and newbuilding deliveries.
It took a ZAR 183m impairment on the decision to sell three of its older ships.
Including one-time items and impairments, Grindrod expects the 2016 loss to be between ZAR 1.695bn and ZAR 1.72bn.
