J. Lauritzen: No Dry Cargo Recovery

By Aiswarya Lakshmi November 15, 2015

“The dry cargo markets have shown no signs of recovery during Q3. A lack of demand growth in combination with deliveries of new tonnage will make this the reality of the market for an extended period. Our Q3 result in dry cargo is as expected and a reflection of these market conditions. Our gas carriers continued to perform as forecasted," says Jan Kastrup-Nielsen, President and CEO of J. Lauritzen.

Continued reduction of the owned dry bulk fleet was offset by increase of short-term chartered dry bulk tonnage.

12 months time-charter of two 10,000 cbm ethylene gas carriers with purchase obligation after expiry of the charter period late 2016.

EBITDA for the first nine months amounted to USD (30.0)m against 28.4m in the same period last year. Q3 EBITDA amounted to USD (12.2)m compared to USD (2.8)m in Q3 2014.

Net result for Q1-Q3 was USD (160.7)m, including special items of net USD (76.5)m, and significantly down on USD 16.3m in the same period last year primarily due to the extraordinary weak dry cargo markets, special items including impairments, discontinued operation and exit from the capesize bulk carrier segment.