Pioneer Marine Plunges into Red Again, Cancels Ship Orders
By Aiswarya Lakshmi
Tuesday, November 24, 2015
Singapore-based Pioneer Marine reported a $5.4m loss for the third quarter of 2015, about even with a $5m loss in the same quarter last year. It canceled orders for three new ships as the bulk-ship operator coped with a steep decline in demand for commodities in China.
Net Revenue of Pioneer amounted to $9.9 million for the third quarter of 2015 and $28.8 million for the nine month period ended September 30, 2015.
Pankaj Khanna, Chief Executive Officer, commented, "2015 has proved to be the toughest year for the drybulk market in probably 35 years. The BDI has dipped below the lowest levels ever seen during this period and we are again sounding those dire levels in November."
Regarding the termination of three newbuilding contracts with no cancellation penalty to the Company, he said: "We are grateful to Yangzhou Guoyu Shipyard for their cooperation in terminating three newbuilding contracts at zero cost to the company. All of the payments made will be applied to prior vessels. In addition we have further delayed the delivery of the remaining vessels with five vessels now due in 2016 and another three in 2017."
Pioneer Marine is a leading shipowner and global drybulk handysize transportation service provider. Pioneer Marine currently owns thirteen Handysize and one Handymax drybulk carriers with an additional 8 Handysize newbuildings on order for delivery through 2017. The Handysize Green Dolphins newbuildings are ‘Eco’ vessels designed by SDARI.