Jinhui Shipping warns of 2022 losses

Hong Kong and Oslo-listed dry bulk specialist Jinhui Shipping and Transport has announced a preliminary assessment of the company’s unaudited management accounts indicate a net loss of around US$46m to US$47m and around US$6m to US$7m for the fourth quarter and the year 2022 respectively.
 

The company cites the cause for the downturn in results to an unprecedentedly challenging environment and the recognition of impairment loss of around US$49m on owned vessels as compared to a net profit of US$84m and US$194m for the corresponding fourth quarter and the year 2021, which included a reversal of impairment loss of US$68m and US$134m on owned vessels respectively.
 

Summing up the adverse conditions prevailing the company said: “Due to subdued macroeconomic conditions in the second half of 2022, dry bulk shipping market suffered a slump particularly in the fourth quarter of 2022. The demand for dry bulk commodities was weak due to the slowdown of global economic growth as a result of high inflation and rising interest rates, the COVID-19 related issues as well as multiple geo-political issues that dampened economic activities globally. A further downward correction in the market freight rates was continued in the fourth quarter of 2022.” 

Source: Hong Kong Maritime Hub
 

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