Nanjing Tanker predicted it would return to the black in the first half of 2015 due to reduction in finance cost, lower bunker fuel cost, and a recovery in the oil shipping market.
Revenue would also grow in the first half of 2015, according to a stock filing of Nanjing Tanker. In the first half of 2014, Nanjing Tanker’s loss amounted to CNY700 million (USD113 million).
For the first three months, the company returned to the black with a profit of CNY120 million, with revenue down 32% year on year (y/y) to CNY1.1 billion. The fall in revenue resulted from the disposal of its very large crude carrier fleet in 2014, the company said.
The disposal helped Nanjing Tanker repay bank loans of about CNY2.4 billion.
During the period, the company’s finance cost slumped 59% y/y to CNY76 million, as it completed its restructuring to shed loans by the end of 2014.
In addition, the company decommissioned six old vessels in 2014 during the restructuring. As of end of March 2015, the company operates 65 vessels with an aggregate capacity of 2.76 million dwt, comprising medium-range tankers, chemical tankers, liquefied petroleum gas carriers, and liquefied ethylene gas carriers.
The company was delisted by the Shanghai Stock Exchange in June 2014 after posting four consecutive annual losses from 2010 to 2013.