UASC’s profits down 9% in 2005
United Arab Shipping Co. Sunday reported a 9.4 percent decline to its net profit for 2005 to $115.3 million, from a restated $127.3 million in the previous year.
Operating profit for the year was down 29.1 percent to $83.3 million, compared to $117.6 million in 2004. Revenue improved 6.4 percent to $1.04 billion, compared to $981.9 million in 2004.
UASC transported a best-ever 1.12 million TEUs, up 2 percent from the year before. The company said the high charter and bunker prices prevented further increases to its volumes. “Of course UASC would like to grow with the market but chartering in tonnage was prohibitively expensive and we had to scale back carryings in some markets in order to meet the growth in demand from customers in our core markets,” said Ken Sorensen, UASC’s president and chief executive officer.
The company also cautioned that it might not immediately return to its record profits of 2004. “The container industry is entering into a period of softer market conditions that could last for a few years whilst the huge backlog of containerships currently on order are delivered and container trade demand grows sufficiently to utilize the additional new capacity,” said Dhiyaa Habeeb F. Al-Khayoun, the chairman of UASC’s board of directors.
UASC’s profits down 9% in 2005
