Hellenic Carriers profit sinks

12th Sep 2011 08:19

Marine transportation company Hellenic Carriers posted a sharp drop in half year net profit as it battles against continued pressure in the freight market.The group, which owns a fleet of five dry bulk vessels that transport iron ore, grain, steel products and minor bulk cargoes, said first half net profit fell to $3.1m for six months ended 30 June 2011 compared with $10m last year. Revenue fell to $20.8m during the period from $30.6m previously. Chief executive officer Fotini Karamanli commented, "Since early 2011 the dry bulk market has been subjected to considerable downward pressure resulting in poor freight rates, especially in the capesize sector. The dry bulk market is now experiencing the effects of oversupply of vessels, mainly ordered during the boom years."He added, "This development comes as no surprise since the overhang of the order book was causing concerns for a number of years. However, in this depressed environment there are positive signs which we should not fail to consider." Cash reserves fell to $49.1m from $60m at 31 December. Hellenic has not recommended an interim dividend payment. CJ