Jinhui cuts losses in 2016

Hong Kong-listed Jinhui Shipping and Transport managed to reduce losses in 2016, from the 2015 figure of US$378.74m to US$189.09m. The 2016 result was marred by impairment loss on owned vessels worth US$113.01m, together with an additional impairment loss of US$45.46m on assets related to two panamaxes, five supramaxes and one handymax completed in 2016.

Jinhui also revealed that it had sold four supramaxes to Minyi (Timajin) Ship Leasing for US$48m to be delivered by 15 April or earlier. The parent company Jinhui Holdigs said that it would incur a total book loss of around US$6.8m on the sale of the bulkers.

“The directors believe that the disposal will enable the group to enhance its working capital position and further strengthen its liquidity, and optimise the fleet profile through this on-going management of asset portfolio,” Jinhui Holdings said.

Commenting on the 2016 performance Jinhi Holdings said: “2016 was one of the toughest years for dry bulk shipping. Both the freight market and asset price went through a confidence meltdown during the first half of 2016, and have since rebounded from its trough to better levels though still uninspiring. The expected path to meaningful recovery and equilibrium is not without its challenges,” the company added.

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