Dry bulk companies report higher earnings

Dry bulk companies report higher earnings Bulk shipping company Diana Shipping had third quarter profit of $50.4 million compared to $16.7 million in the same 2006 period.
   Revenue was $49 million for the quarter compared to $30.6 million in the same 2006 period.
   The results reflected a gain of $21.5 million on the sale of a ship in the quarter and what Simeon Palios, chairman and chief executive officer, said were strong market conditions.
   “The dry bulk market remains firm and we continue to enjoy historically high levels of demand for the transportation of the commodities carried on the Diana vessels,” he said. “We expect the next few quarters to continue to be strong, with China, India and other developing regions moving their economic activity forward at strong rates of growth.”
   Golden Ocean Group Ltd., another dry bulk company, reported net income of $52.9 million compared to $15.3 million in the same 2006 period.
   Revenue was $181 million for the quarter compared to $68.3 million in the same 2006 period.
   It also said it expected the spot market for dry bulk ships to remain strong over the next two years citing the increased demand for coal from China and the fact that it is having to source coal from more distant countries because of “limited export capacity in neighboring countries.” That means ships have to go on longer voyages, reducing the supply dry bulk ships — what shipping companies call the “ton mile effect.”
   Golden Ocean also said the international steel industry continues to be strong. China, which it said accounts for 40 percent of global steel consumption, “will have to increase iron ore imports by 50 million per annum for both 2008 and 2009.”