Our performance in 2015

Our core dry bulk business generated a reduced net loss of US$33.8 million (2014: net loss US$39.4 million) despite one of the weakest years ever for dry bulk market rates. Our positive dry bulk EBITDA of US$80.3 million in this challenging environment was again driven by our ability to generate daily earnings that outperformed the market and our continued good control of our owned vessel operating costs.


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US$ Million 1H15 2H15 2015 2014 Change
Handysize Contribution (0.6) (7.8) (8.4) 28.5 >-100%
Supramax Contribution 10.4 12.2 22.6 (14.8) >100%
Post-Panamax Contribution 2.7 2.8 5.5 5.5 -
Dry Bulk operating performance before overheads 12.5 7.2 19.7 19.2 +3%
Direct overheads (24.6) (22.9) (47.5) (49.2) +3%
Indirect overheads (3.3) (2.7) (6.0) (9.4) +36%
Dry Bulk net loss (15.4) (18.4) (33.8) (39.4) +14%
Dry Bulk EBITDA 39.3 41.0 80.3 84.6 -5%
Dry Bulk vessel net book value 1,535.0 1,577.8 1,577.8 1,539.0 +3%



Performance vs Market

  • Our 54% and 39% outperformance in 2015 compared to spot market indices reflects the value of our fleet scale and cargo book, and our ability to optimise cargo combinations and match the right ships with the right cargoes to maximise our utilisation and vessel earnings.


  • We generated Handysize daily earnings of US$7,870 with daily costs of US$7,930 on 51,600 revenue days. Our Handysize results were under pressure in the weak market resulting in a negative Handysize contribution despite our strong premium.
  • We achieved a significant turnaround in our Supramax performance by focusing on key routes in the Atlantic and on steel exports from China to generate a positive US$22.6 million Supramax contribution in 2015 (despite the much weaker market) from a US$14.8 million loss in 2014. Our Supramax business is benefitting in the weak market from its larger proportion of short-term inward chartered ships.
  • We operated an average of 143 Handysize and 64 Supramax ships resulting in an 8% reduction and 4% increase in our Handysize and Supramax revenue days respectively.
  • Our Handysize capacity has reduced as we are redelivering expiring medium and long-term chartered vessels to gradually lower our charter-in costs, relying instead on our growing fleet of owned ships and low-cost shorter-term and index-linked charters

Future Earnings and Cargo Cover

  • We have covered 44% and 59% of our 37,080 Handysize and 13,120 Supramax revenue days currently contracted for 2016 at US$7,800 and US$7,330 per day respectively. (Cargo cover excludes revenue days related to inward-chartered vessels on variable, index-linked rates)
  • While ship operators such as ourselves typically face significant exposure to the spot market, our contract cover provides a degree of earnings visibility.

My Annual Report

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