Rickmers posts 198.7m euro loss for first nine months of 2016

The German shipowner and breakbulk ship operator said it sees no signs of a recovery in the general economic conditions for the final quarter of the year.

   The Rickmers Group, a German shipowner and breakbulk ship operator, said it has generated consolidated revenues of 373.6 million euros (U.S. $405.7 million) during the first nine months of 2016, a 15 percent decline from the corresponding 2015 period.
   “This fall is due mainly to the persistently strained market situation through the expiry of further high-margin charter contracts, temporary fleet idleness and follow-on charters at current low market rates,” Rickmers said. “Furthermore, lower revenues from freight and a stronger fall in capacity utilization in the project cargo area also had a negative impact.”
   The company had a net loss of 198.7 million euros for the first nine months of 2016, compared with a net loss of 94.2 million euros for the same period the previous year.
   Meanwhile, Rickmers had earnings before interest, taxes and amortization (EBITDA) of 136.8 million euros, 31 percent less than for the first nine months of 2015.
   Rickmers said that based on downgraded global economic growth and container trade forecasts, it does not see any signs of recovery in the general economic conditions for the fourth quarter of this year. “This will also be reflected in the development of charter and freight rates, which will probably remain at a low level,” Rickmers said.
   “Besides the negative development of the Rickmers Group’s revenues, which is due mainly to the deconsolidation of a joint venture for three 9,450-TEU container vessels at 1 January 2016, lower spot-market charter rates, temporary fleet idleness, follow-on charters at current lower market rates, persistently weak freight rates and falling capacity utilization in the project cargo area, the management anticipates that the operating result (EBITDA) of the Rickmers Group for financial year 2016 will continue to be considerably below that of financial year 2015,” it added.
   Rickmers Group’s business activities are divided into three segments:
     • The maritime assets segment manages the company’s own vessels and those of third parties by initiating and coordinating shipping projects; arranging financing; and acquiring, chartering and selling ships.
     • The maritime services segment provides ship management services such as technical and operational management, crewing, supervision of newbuilds, consultancy and insurance-related services for itself and third parties.
     • Rickmers-Linie operates as a shipping line for breakbulk, heavy lift and project cargo, and also operates ships for individual voyages.