Siem Shipping, the listed Norwegian reefer and car carrier owner, says it is looking at other sectors of shipping to expand its business after reporting stronger second quarter 2015 (2Q15) and first half 2015 (1H15) interim results.
Group net profit in 2Q15 rose to USD4.8 million from USD3.2 million in the same period last year, although revenues decreased to USD57.7 million from USD62.8 million.
In 1H15, profit rose to USD5.3 million from USD1.6 million a year before, despite a fall in revenues to USD100.9 million from USD121.0 million. In both periods, a fall in ship operating costs and administration plus finance costs more than offset weaker revenues.
The company’s London-based Star Reefers unit operates 28 reefers totalling a 16 million ft³ (450,000 cu³). It said spot market trading would remain sporadic in the banana trade lanes because of Mediterranean traders being cautious and focusing on contract of affreightment (COA) commitments and container line agreements rather than rely on the spot market.
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“The summer low season is expected to return similar rates compared to 2014, with limited lay-up of vessels,” Siem Shipping said. “With increased competitiveness on pricing and a superior quality direct service offering, specialised reefers are seeing increased interest in longer-term shipping contracts.”
Siem’s reefer strategy is to maintain its position as a leading specialist reefer operator and to provide its customers with a high-quality service at highly competitive prices
In 1H15, Siem Shipping expanded into the car carrier tonnage provider market, entering into agreements with Uljanik shipyard in Croatia to build two 7,000 ceu-capacity pure car/truck carriers for delivery in the second half of 2017. “The company is also continuing to evaluate opportunities in other sectors of the shipping market,” Siem said.