Pioneer Marine Cuts Full-Year Loss

Business & Finance

Owner and operator of dry bulkers Pioneer Marine has concluded another year in the red, having reported USD 5 million of net loss for the year ended December 2017.

However, the loss has been substantially cut when compared to USD 27.2 million of net loss booked for 2016.

For the fourth quarter of 2017, the company’s net income stood at USD 2.5 million, up by USD 6.3 million when compared to a loss of USD 3.8 million posted in Q4 2016.

According to Torben Janholt, Chief Executive Officer of Pioneer Marine, 2017 was overall a very good year for the company as it was the year of recovery for dry bulk owners in general.

“These positive results are the outcome of the successful company’s restructuring within the year as well as further activities undertaken by the new executive management team to streamline operations,” he added.

“The fourth quarter is always the strongest period for the dry bulk market and this year was not an exception, creating expectations for a sustained recovery in 2018. 

“The average BHSI index stood at USD 9,369 per day for the fourth quarter of 2017 as compared to USD 7,371 per day for the third quarter, reflecting a 27 pct increase. The market increase was mainly driven by China’s substitution of low-quality iron ore and coal towards seaborne imports of higher quality.”

Speaking of the market outlook, Janholt said that 2018 is expected to be a much better year for the bulk market compared to previous years.

The prediction is made based on the expected balance between supply and demand moving forward.

“We aim to take advantage of the market opportunities and bring sustainable growth to our company,” Janholt added.

Pioneer Marine currently owns fourteen Handysize, one Handymax and one Supramax dry bulkers.