Pacific Basin Shipping saw its 2016 net loss widen to $86.5m from $18.5m previously. Revenue slid 14% to $1.09bn from $1.26bn previously.
The company’s core dry bulk business generated a net loss of US$87.6m compared to a net loss of $34.7m in 2015.
“2016 was an extremely poor year for dry bulk shipping. Average market rates were even weaker than in 2015, dragged down in the first quarter by rates not seen for 45 years,” chairman David Turnbull said in a stock market statement.
However, he added that “conditions improved over the remainder of the year, and sentiment in the industry is recovering”.
Pacific Basin CEO Mats Berglund said: “Freight rates were undermined at the start of the year by the general seasonal slowdown in demand, lingering oversupply of dry bulk tonnage and reduced movements of coal.”
“In this difficult environment, we generated average handysize and hupramax daily TCE earnings of $6,630 and $6,740 per day net, outperforming the BHSI and BSI indices by 34% and 14% respectively,” Berglund pointed out.