/ By tjchinafreight ivy / Shipping

Huiyang Shipping’s first-quarter profit tripled year-on-year

The crisis in Russia and Ukraine pushed up the freight rate of bulk carriers, and the performance of Huiyang Shipping in March and the first quarter both hit record highs.

On April 6, Huiyang Shipping announced its financial report. The revenue in March was NT$2.203 billion (approximately RMB 486 million), and the self-settled operating profit was NT$1.139 billion (approximately RMB 251 million). The monthly pre-tax profit was NT$1.175 billion (approximately RMB 259 million).

The financial report shows that in the first quarter, Huiyang Shipping’s revenue was NT$5.754 billion (approximately RMB 1.269 billion), and its pre-tax profit was NT$2.777 billion (approximately RMB 612 million), three times that of the same period last year. , a record high for the same period of the previous year, with an average operating profit rate of 48%.

Huiyang Shipping said that the global dry bulk shipping market is still affected by the crisis in Russia and Ukraine. At present, due to the surge in oil prices and the transfer of raw material importing countries to other countries for procurement, the voyage has increased. These factors may increase the freight rate. However, whether the demand for raw materials is It can be fully supplemented by other regions, and the impact of subsequent economic sanctions by various countries still needs to be continuously observed.

On the other hand, the epidemic in mainland China heated up again in late March, and the first-tier cities along the coast were shut down due to epidemic prevention, resulting in a slight decline in the market volume. However, Huiyang Shipping believes that this is a short-term impact, and there is a possibility of demand recovery sex.

In terms of fleet planning, Huiyang Shipping received the 37,800-dwt handy-sized high-specification energy-saving and environmentally friendly bulk carrier "Bunun Treasure" delivered by Imabari Shipbuilding in Japan at the end of March, and has signed a stable charter. Up to now, the company's fleet operates 139 ships, with an average age of 7 years. The fleet size and the proportion of energy-saving ships are in a leading position in the industry.

Looking forward to 2022, Huiyang Shipping still maintains an optimistic attitude. Due to the rising freight market and raw material prices in recent years, the construction cost of bulk carriers has increased by about 30%-40% on average compared with the same period last year. The number of orders on hand for cargo ships is still low, and after the new environmental protection regulations hit the road in 2023, it is expected that the elimination of old ships will make the supply of capacity even tighter, and Huiyang Shipping maintains a consistent and stable ship purchase policy, which will give it a more competitive advantage.

/ By tjchinafreight ivy / International

Fifth round of EU sanctions on Russia

At the same time, the export of semiconductors, automobiles and transport equipment to Russia is banned, with a total export value of about 10 billion euros per year.
On April 5, local time, the European Commission issued a statement on its official website saying that the chairman of the European Commission, Ursula von der Leyen, proposed to impose a fifth round of sanctions on Russia.

According to the statement, the fifth round of EU sanctions against Russia includes the following six aspects:

1. An annual import ban worth 4 billion euros will be imposed on coal from Russia. That would cut into another important source of income for Russia.

2. A complete ban on transactions by four major Russian banks, including VTB, Russia’s second largest bank. These four banks, we are now completely cut off from the market, account for 23% of the Russian banking market share. This will further weaken Russia's financial system.

3. Prohibit Russian ships and Aeroflot ships from entering EU ports. Certain exemptions will cover necessities such as agricultural and food products, humanitarian aid, and energy. In addition, we will propose a ban on road transport operators in Russia and Belarus. The ban would greatly limit the options for Russian industry to obtain critical commodities.

4. Further export ban worth 10 billion euros in vulnerable regions of Russia. This includes, for example, quantum computers and advanced semiconductors, but also sensitive machinery and transport equipment.

5. A specific new import ban, worth 5.5 billion euros, to cut off the flow of capital to Russia and its oligarchs, from wood to cement, from seafood to wine.

6. Some very targeted measures have been taken, such as the EU's blanket ban on Russian companies from participating in public procurement in member states, or the exclusion of all financial support for Russian public institutions, both European and national. Because European taxes should not go to Russia in any form.

"We are also working on other sanctions, including sanctions on oil imports from Russia," added Von der Leyen, explaining that a fifth round of sanctions would further put financial pressure on Russia.

As of now, the effective date of the fifth round of sanctions has not been announced. According to EU rules, the European Commission's proposal must be unanimously agreed by the 27 member states before it can come into effect.

German Foreign Minister Annalena Baerbock said recently that Germany, as a member of the European Union, has agreed to completely end its dependence on Russia's fossil fuels, starting with coal, followed by oil and gas.

However, the Confederation of German Industry has previously said that giving up imports of natural gas and oil from Russia in the short term will cause huge damage to German industrial companies.

The president of the association, Ruswarm, said that the energy embargo will harm Germany and the European Union more than it will affect Russia. German industry, supply chains and security of supply will all face "extremely serious" consequences.

He further said: "Energy imports from Russia cannot be replaced overnight. One-third of the oil and more than half of the natural gas that Germany uses now comes from Russia."

It is understood that any sanctions on coal will seriously affect the trade volume of bulk carriers as the energy crisis engulfs Europe. At the same time, Europe relies heavily on Russia's oil and gas resources in the fields of transportation and energy.

Relevant data show that Russia is an important importer of EU natural gas, oil and coal. In 2021, 40% of the EU's natural gas imports, 25% of its oil imports and 45% of its coal consumption will come from Russia.