Taiwanese bulk carrier U-Ming Marine posted its profit of TWD64.28 million (USD2.07 million) for the first quarter of 2015, slumping 82% from TWD316.17 million year on year (y/y).
The carrier’s revenue also dropped 10% y/y from TWD2.11 billion in the first quarter in 2014 to TWD1.89 billion in the first quarter in 2015. Meanwhile, its operation cost rose from TWD1.72 billion in the first quarter in 2014 to TWD1.82 billion in the first quarter of 2015.
The weak industry sentiment in 2015 was attributed to the long-running problem of oversupply and sluggish demand from China for coal – one of the major commodities carried by bulk ships, according to U-Ming Marine president Wang Shu-Chi at the company’s annual general meeting on 10 June
However, after the Chinese-led Asian Infrastructure Investment Bank (AIIB) becomes operational, it could generate investments of USD5.7 trillion in the next 10 to 20 years, making it a major growth driver for the industry, Wang noted, and in the mid and long term, shipping demand for infrastructure in Asian countries is expected to be the major support for the industry.
Related news:U-Ming Marine sees prospect in bulk shipping
The establishment of various free-trade alliances around the globe and growing opportunities in the Middle East could offer solid support for the industry, said Douglas Hsu, chairman of U-Ming Marine.
U-Ming is also expected to benefit from oil tanker business via Global Energy Maritime, a joint venture between U-Ming, Chinese Maritime Transport, and state-run oil refiner CPC Corp, Hsu added.
The carrier is scheduled to take delivery of four Capesize bulkers, three Panamax bulkers, and four Handymax bulkers by the end of 2017, according to its annual report filed to Taiwan Stock Exchange.