In This Article:
Release Date: November 26, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Jinhui Shipping and Transportation Ltd (FRA:J4O) reported a significant increase in chartering revenue, doubling from USD20 million in Q3 2023 to USD46 million in Q3 2024.
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The average time charter equivalent for the fleet increased by 74% year-over-year, indicating improved operational efficiency.
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The company successfully acquired two vessels, enhancing its fleet capacity and modernizing its operations.
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Jinhui Shipping and Transportation Ltd (FRA:J4O) maintained a low gearing ratio of 12%, reflecting strong financial stability.
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The company achieved a net profit of USD8 million for Q3 2024, contributing to a total of USD19 million for the first nine months of 2024.
Negative Points
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Shipping-related expenses increased to USD24.1 million, driven by higher hire payments and costs associated with newly delivered vessels.
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The daily running costs of owned vessels rose slightly, impacting overall operational expenses.
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The market outlook is expected to be muted and quiet in the coming months, potentially affecting future revenue growth.
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There is ongoing uncertainty and volatility in the global shipping market, which could impact future performance.
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No current plans for share buybacks or dividends, which may disappoint shareholders looking for immediate returns.
Q & A Highlights
Q: Can you provide more details on operating Capesize vessels and the Parakou legal dispute? A: Operating Capesize vessels is easier than Supramax or Ultramax due to less operational complexity. Regarding the Parakou legal dispute, the settlement is being calculated and expected to be resolved early next year. The exact sum will be disclosed in the annual results.
Q: Are there any plans for share buybacks or dividends? A: There are currently no instructions from the Board regarding share buybacks or dividends. The focus is on improving business operations, hoping that better results will reflect in the stock price.
Q: What is the outlook for Q1 2025, and how are you managing fleet visibility? A: While specific forward-looking statements are limited due to regulatory constraints, some fleet visibility has been secured for Q1 2025. The company remains cautious and will provide updates through official announcements.
Q: How does the company view the supply and demand dynamics for different ship sizes? A: Currently, the supply-demand balance is more favorable for Capesize vessels. However, Capesize lacks cargo flexibility compared to Ultramax and Supramax, so the company aims to balance stability and flexibility.