Hong Kong and Oslo-listed dry bulk specialist, Jinhui Shipping is looking to increased demand from China to scoop it out of a deepening pool of red ink created during the second quarter of 2020.
The net loss for Q2 2020 surged to US$5.285m compared to a loss of US$1.147m in the second quarter of 2019. The worsening loss came off reduced revenue for the period, which fell 39% to US$8.51m from the earnings of its fleet of 16 supramax and 2 post-panamax vessels.
Revenue for the first half of 2020 fell 34% to US$17.724m, compared to US$26.784m for H1 2019. Jinhui attributed the loss to a drop in the average daily TCE earned by the Group’s owned vessels falling 36% to US$5,293 during the period compared to H1 earnings of US$8,277.
In July 2020 Jinhui acquired a secondhand 50,259 dwt supramax for US$3.95m.
Looking to the immediate future the company said: “China is the biggest importer of raw materials by far given its important role in the global manufacturing supply chain.
“We remain cautiously optimistic that business and industrial activity will continue to pick up in China. We continue to see people heading back to work in orderly batches, with exceptionally high alert in public hygiene and the necessary protocols in place at work places. We hope this resumption to work in an orderly fashion will continue without too much new negative surprises, and hence global trade will begin to revert to normal albeit we wish at a higher speed.”