ShippingWatch

J. Lauritzen CEO on the bulk market: Things could get really bad

J. Lauritzen has presented a half-year report with significant deficits. Particularly tank and bulk is dragging the results down and things could get even worse in the future, says CEO Torben Janholt to ShippingWatch.

“We believe we are in a bad situation seeing as the tank and dry bulk markets are really underperforming right now. The bulk market has hit some very low levels and it could become really bad,” comments CEO Torben Janholt on J. Lauritzens half-yearly results.

The shipping company’s net turnover increased with about $100 million from $277 million in the first half-year of 2011 to $365 million in the first half-year of 2012, but the result post-tax is significantly lower at minus $67.2 million in 2012, a drop from $4.6 million in 2011. It is the bulk and tank business which is dragging J. Lauritzen’s result down. The world economy combined with low freight rates on the two shipping types are the explanations which J. Lauritzen for Lauritzen Bulkers’ net loss of minus $53.1 million compared with a net profit of $17.1 million in the first half of 2011. For the tank business the post-tax result dropped to $3 million compared to $4.4 million in 2011. In the report, J. Lauritzen writes that some of the factors impacting the business, for instance the fluctuations of the world economy, are out of the company’s reach and as such cannot be helped.

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