Rickmers – BT

Rickmers beats Q2 forecast with US$9.2m profit

SHIPPING trust Rickmers Maritime reported a net profit of US$9.2 million for the second quarter ended June 30, 53 per cent higher than its forecast.

Total revenue of US$26.22 million also beat projections by 14 per cent, while the distribution per unit (DPU) was 2.25 US cents, 5 per cent more than the forecast 2.14 US cents.

Rickmers Maritime was constituted on March 30, 2007, and commenced activities only upon its listing on May 4, 2007.

As such, comparisons were done with projections as ‘comparisons with actual figures would not be meaningful’.

For the first six months of the year, net profit totalled US$17.59 million, 53 per cent better than forecast, while US$50.87 million was chalked up in total revenue, 19 per cent higher than the projected US$42.65 million.

DPU for the first half was 4.39 US cents compared with the forecast 4.28 US cents.

The strong performance was on the back of smooth operation of the fleet, lower cost of lubricant oil and early delivery of newbuildings, Rickmers Trust said in a statement.

Charter revenue for 1H08 amounted to US$46.01 million, 8 per cent higher than expected.

‘We secured a total debt of US$627.5 million in the midst of credit crisis as well as achieved shareholder approval for Rickmers Maritime to raise up to US$650 million of equity. These measures provide us with sufficient financing flexibility to execute our acquisition strategy going forward,’ said Quah Ban Huat, CFO of Rickmers Trust Management, the trustee-manager.

As at June 30, Rickmers Maritime’s portfolio comprised 11 container ships, which are chartered out on long-term, fixed-rate time charter basis with an average remaining charter period of seven years.

Rickmers’ shares closed one cent down at $1.13 yesterday.