Our Performance in 2018

Our business generated an underlying profit of US$72.0 million (2017: US$2.2 million) in a markedly better year for dry bulk shipping. In the improved market conditions, we generated daily earnings that outperformed the BHSI and BSI indices and continued to maintain good control of our vessel operating costs.

Operating Performance

US$ Million1H182H1820182017Change
Handysize contribution38.447.185.531.4>+100%
Supramax contribution15.826.342.119.8>+100%
Post-Panamax contribution2.
Operating performance before overheads56.976.2133.156.7>+100%
G&A overheads(28.4)(31.4)(59.8)(54.4)-10%
Tax and other(0.5)(0.8)(1.3)(0.1)>-100%
Underlying profit28.>+100%
Vessel net book value1,815.11,801.91,801.91,791.5+1%

Key Performance Indicators

Performance vs Market

  • Our outperformance in 2018 compared to spot market indices reflects the value of our fleet scale and cargo book, and our ability to optimise cargo combinations and match the right ships with the right cargoes to maximise our utilisation and vessel earnings.


  • We generated Handysize daily earnings of US$10,060 with daily costs of US$8,260 on 50,120 revenue days. We generated Supramax daily earnings of US$12,190 with daily costs of US$10,740 on 29,980 revenue days.
  • Both our Handysize and Supramax contributions increased significantly year on year. This improvement is due to better markets, continued outperformance and strong cost control leading to increasing profits from our larger owned fleet, as freight rates were well above our competitive owned vessel break-even levels.
  • We operated an average of 139 Handysize and 83 Supramax ships in 2018 resulting in 6% and 13% reductions in our Handysize and Supramax revenue days. This reflects an increase in our owned fleet, offset primarily by fewer short-term chartered-in Supramax ships, mainly due to lower Chinese steel export volumes.

Future Earnings and Cargo Cover

  • We have covered 44% and 63% of our 39,870 Handysize and 19,120 Supramax revenue days currently contracted for 2019 at US$9,370 and US$10,570 per day net respectively (cargo cover excludes revenue days related to inward-chartered vessels on variable, index-linked rates).
    For comparison the graphs show the level of cover we had secured as at the same time in February in recent years.
  • While ship operators such as ourselves typically face significant exposure to the spot market, our contract cover provides a degree of earnings visibility.