Highlights
- Results improved in the third quarter with a gross profit of USD 8 million being in line with revised expectations. An improvement of USD 10 million compared to the third quarter, 2010.
- EBITDA year to date was USD -3 million and net profit year to date was USD -3 million.
- Supramax and Panamax freight rates recovered significantly during August and September from the relatively low level in July. Although freight rates in the fourth quarter are expected to improve compared to the third quarter, the dry bulk market in 2011 has been weaker than 2010 with a supply side being impacted by the continued excessive newbuilding deliveries and a tightening of the demand side.
- Due to certain of U-SEA Bulk’s customers reducing their shipping programs in anticipation of the continued weakening of the global economy, the financial outlook have as per earlier announcement been revised, with EBITDA expectations amounting to USD 1-5 million for 2011.
- U-SEA Bulk initiated a study jointly with Ultrabulk, a company of Ultragas International S.A., to identify commercial and operational synergies as previously announced (cf. company announcement no. 35/2010). The outcome of this study has resulted in a Global Marketing Agreement between the two entities taking effect 1 January 2012. The agreement will not have any impact on expectations for 2011.
Per Lange, CEO: “With the Global Marketing Agreement in place we will be able to offer a wider transportation pallet to our clients, covering several drybulk segments: handysize, handymax/supramax and panamax/kamsarmax segments. The potential commercial and cost synergies are expected to strengthen the existing platform of U-SEA Bulk targeting future long term growth and financial stability. As a natural result of entering into the Global Marketing Agreement, U-SEA Bulk will be trading under a new trade name as per 1 January 2012, Ultrabulk”.
