UASC CONFIRMS HIGHER PROFITS FOR 2001

UASC CONFIRMS HIGHER PROFITS FOR 2001    United Arab Shipping Co. confirmed that it increased its profits and bucked the adverse trends of the worldwide liner shipping market in 2001.
   The Middle Eastern shipping company saw its net profit improve to $41.5 million last year, from $40.8 million in 2000.
   Operating profit also increased slightly, to $41.6 million, from $40.8 million in the previous year.
   UASC’s annual revenues decreased 3 percent to $743 million in 2001 from $770 million in 2000.
   Abdulaziz Bin Abdulrahman Al-Ohaly, chairman of UASC, said 2001 was a most challenging one for the shipping industry due to the sharp slowdown in growth of the global economy and trade, especially in the second half of the year.
   “Like other lines, UASC’s performance was adversely affected by the slowdown in growth in the container markets, but benefited from a reduction in costs due to lower fuel prices and an improvement in demand for its breakbulk services,” UASC said.
   The company’s operating costs were reduced $33 million last year, from $683 million to $650 million. Gross profit improved from $86.5 million to $92.7 million.
   UASC is ranked 10th in American Shipper’s just-published annual comparison of container shipping lines by operating profit, out of 26 shipping companies surveyed.
   The company’s general assembly approved the distribution of a dividend, representing 5 percent of paid up capital.
   UASC’s container traffic fell by 2 percent last year, to about 806,000 TEUs, while its breakbulk general cargo volume soared by 22 percent, to 1 million freight tons.