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The PŻM Group incurs losses, though smaller
The sea transport company from Szczecin announced its financial performance for 2014 with the annual turnover of ca PLN 1.5 billion and a loss of PLN 43 million.
Bulk carriers represent the major part of the PŻM fleet
/fot.: archive /
The business environment of the PŻM Group and other shipowners is not particularly favorable. The market conditions in 2014 were worse than in the preceding year and the shipping market is still facing a severe crisis, says Krzysztof Gogol, spokesman of the PŻM Group. Nevertheless, the financial result of the PŻM Group is higher by PLN 157 million than in 2013, when the net loss incurred by the shipowner totaled PLN 200 million.
At the same time, in 2014, the company repaid its investment loans in line with the agreed schedules, thus reducing its debt by USD 70 million.
A considerable improvement in the company’s financial performance as compared to 2013 is mainly the effect of cost-cutting initiatives, to include adoption of the slow steaming strategy, which is based on reduction of the operating speed of ships, which translates into savings in the consumption of fuel, as well as the sale of the oldest and the most unprofitable vessels (five oldest ships were scrapped), explains Gogol.
However, this year is expected to be even worse for PŻM. The first half of 2015 has been the worst on record for the market of bulk transport. The average freight rates have dropped by 30%, explains the spokesman of the PŻM Group, who adds: The number of ships ordered has dropped dramatically over the past few months, which denotes that considerably fewer vessels will be operated in 2017. Consequently, the freight rates are expected to rise and the market conditions should finally improve.
Polska Żegluga Morska is the largest shipowner in Poland. Its fleet consists of sixty-two ships with the total deadweight capacity of 2.3 million tons. It is also one of the major European carriers of dry bulk loads with a ca. 0.5% share in the global transport market of the sector and a global leader in liquid sulfur transport. PŻM ships transport ca. 200 million tons of goods annually. Additionally, the shipowner manages seven Unity Line ferries that run between Poland and Sweden.
AK
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