Rickmers – BT

Rickmers Q3 revenue doubles, profit up 15%

SHIPPING trust Rickmers Maritime continued to deliver consistent and on-target results with third-quarter charter revenue almost doubling and net profit rising 15 per cent.

The three months ended Sept 30, 2008, saw charter revenue rising to US$26.5 million from the previous corresponding quarter’s US$13.46 million and net profit climbing to US$9.7 million from US$8.37 million.

Cash flow from operating activities increased 89 per cent to US$19.6 million and helped the trust keep distribution stable at US$9.5 million or 2.25 US cents per unit, maintaining its distribution rate for the second consecutive quarter.

The sharp increase in charter revenue was due mainly to the consistent flow of new vessels coming onto Rickmers Maritime’s portfolio, resulting in additional charter hire days available during the period.

For the first nine months, charter revenue leapt to US$72.6 million from US$20.8 million previously and net profit more than doubled to US$27.3 million from US$11.22 million while cash flow from operating activities more than trebled to US$54.8 million from US$16.25 million.

Allaying concerns about a slowdown in the container line market, CEO Thomas Preben Hansen assured investors that Rickmers Maritime has a strong pipeline of vessel deliveries and long-term leases that stretches into 2020 and it enjoys secured total revenue of about US$2 billion over the period. ‘Rickmers Maritime has very limited exposure to the charter market before 2014,’ Mr Hansen said.

Emphasising the strength of the trust’s counterparties, Mr Hansen added: ‘We have not been contacted for renegotiation of contracts and don’t expect it to happen given the quality of our charterers.’

The trust has secured funding for its capital expenditure for the next year, said CFO Quah Ban Huat.

Rickmers Maritime closed four cents higher at 42 cents yesterday.