RCL suffers third quarter net loss of US$18 milli

REGIONAL Container Lines (RCL) and its subsidiaries have recorded a consolidated net loss of THB589 million (US$17.74 million) for the third quarter of 2009 compared to a net loss of THB440.5 million for same quarter last year, on the back of falling volumes and lower freight rates.

For the first nine months of the year, the group suffered a net loss of THB1.58 billion, down from a net profit of THB772.4 million for the corresponding prior year period.

The group's Shipper Owned Container (SOC) liftings in the third quarter under review fell by 30 per cent year on year to 282,303 TEU. The company attributed this partially to lower east-west trade volumes and reduction in the tonnage deployed, as the group returned more time-chartered vessels.

It said in a statement to the Stock Exchange of Thailand that with stronger recovery in the intra-Asia trades, the group's Carrier Owned Container (COC) liftings declined 14 per cent to 312,248 TEU.

Overall, in the third quarter, total liftings of the group recorded a 22 per cent decrease compared to the same period last year at 594,551 TEU.

In comparison with the first nine months of 2008, SOC liftings dropped 30 per cent to 816,486 TEU, COC liftings fell 12 per cent to 923,790 TEU, and total liftings decreased 21 per cent to 1,740,276 TEU.

Total turnover for the third quarter before exchange difference, gain on sale of assets, and adjustment for unrealised loss on derivatives was down 33 per cent year on year at THB5,267 million. The decline in turnover was said to be mainly due to the 22 per cent decrease in liftings as well as lower freight rates in the third quarter compared to last year.

For the first nine months, total turnover fell by 28 per cent compared to the same period a year earlier to THB10.7 billion.

Commenting on the results, RCL managing director Sumate Tanthuwanit said: "The earlier anticipated recovery that started in the second quarter has kept its momentum in the third quarter. From the shipping perspective, though demand in the USA and Europe has not bounced back to levels enjoyed in 2008, volume did however improve and rates held at a better level than previous quarter," he said.

"The intra-Asia trade, with stronger consumer confidence, saw an improvement in the volume as compared to the first half of this year. Recently, there were some signs that both the freight rates and volume had bottomed due to the common approach by the industry to look for additional revenue in the light of rising cost such as bunkers and the continuous weakening of the US dollar. Shipping lines were rolling out rate recovery and implemented the peak season surcharge in certain areas as planned."

Owing to cost reduction measures and lower bunker fuel costs, the cost of freight and operations in the third quarter fell 26 per cent year on year to THB3.7 billion. For the first nine months, the cost of freight and operations decreased 18 per cent to THB11.4 billion, the company added.

Source: www.schednet.com