Financial Performance - Gross profit for the first half of 2023 decreased by 53.8%, from approximately $36.0 million in H1 2022 to about $16.6 million[6]. - Total revenue dropped from approximately $206.0 million in H1 2022 to about $119.2 million in H1 2023, a decrease of 42.2%[19]. - The company recorded a net profit of approximately $1.2 million, down from about $5.2 million in the same period last year, primarily due to reduced global trade and shipping service demand[32]. - The company's profit decreased from approximately $36.2 million for the six months ended June 30, 2022, to about $10.9 million, a decline of approximately $25.3 million or 70.0%[64]. - Revenue for the six months ended June 30, 2023, was $119,171 thousand, a decrease of 42.2% compared to $206,029 thousand for the same period in 2022[186]. - Gross profit for the same period was $16,636 thousand, down 53.8% from $35,988 thousand in 2022[186]. - Operating profit decreased to $14,678 thousand, a decline of 58.8% from $35,592 thousand in the previous year[186]. - Net profit for the period was $10,859 thousand, a decrease of 70.0% compared to $36,220 thousand in 2022[186]. - Total comprehensive income for the period was $10,799 thousand, a significant drop of 70.1% from $36,162 thousand in 2022[161]. Revenue and Costs - Revenue from ship management services decreased by approximately $5.5 million or 19.9% to about $22.4 million from about $27.9 million in the six months ended June 30, 2022[29]. - The company's sales costs decreased from approximately $170.0 million for the six months ended June 30, 2022, to about $102.5 million, a reduction of approximately $67.5 million or 39.7%[61]. - Financing costs increased from about $3.0 million for the six months ended June 30, 2022, to approximately $4.6 million, an increase of about $1.6 million or 52.1%[63]. - The company reported a decrease in sales, general, and administrative expenses to $8,631 thousand, an increase of 65.5% from $5,225 thousand in the previous year[186]. Fleet and Operations - The company has commissioned the construction of 13 new vessels, with 4 already operational in H1 2023, adding a capacity of 321,200 dwt[8]. - An additional 2 new vessels are expected to be operational in the second half of 2023, contributing a further capacity of 98,500 dwt[8]. - The company announced the acquisition of 5 vessels with capacities of 62,000 dwt, 42,200 dwt, and 13,500 dwt to optimize and expand its fleet[8]. - The fleet consists of a diverse range of vessels, including Capesize, Panamax, and Supramax bulk carriers, allowing for flexible market responses[9]. - The company has established strong relationships with shipyards, enabling it to acquire vessels at lower costs and reduce operational expenses[24]. Market Conditions - The average daily BDI index fell by nearly 50% compared to H1 2022, impacting the company's revenue from owned vessels[19]. - In the first half of 2023, the average Baltic Dry Index (BDI) decreased by approximately 49.2% to about 1,157 points from around 2,279 points in the same period of 2022[25]. - The average Baltic Clean Tanker Index (BCTI) fell by about 20.7% to approximately 828 points compared to about 1,044 points in the first half of 2022[25]. - The company reported a decrease in revenue from external customers in the shipping business, down from $178,103,000 in the same period last year to $96,794,000[95]. - The ship management business also saw a decline in revenue from external customers, falling from $27,926,000 to $22,377,000 year-over-year[95]. Strategic Initiatives - The company aims to achieve a 40% reduction in carbon intensity by 2030 and a 70% reduction by 2050, with a goal of carbon neutrality[18]. - The company plans to establish subsidiaries or offices in strategic markets such as Germany and the Philippines to expand its network coverage[14]. - The company plans to establish a business presence in Germany and Southeast Asia, including the Philippines, to enhance ship management capabilities and optimize human resource allocation[27]. - The company is exploring new strategies for market expansion and product development to enhance future performance[97]. - The company plans to actively implement its environmental, social, and governance strategies, including timely fleet updates and eliminations[58]. Financial Position - As of June 30, 2023, the company's capital commitments amounted to approximately $224.6 million, up from $183.0 million as of December 31, 2022, related to nine vessels under purchase contracts[38]. - The company's total segment assets increased from $270,193,000 at the end of 2022 to $414,662,000 as of June 30, 2023[96]. - Total assets for the shipping business as of June 30, 2023, amounted to $398,692,000, with total liabilities of $248,566,000[95]. - Total liabilities increased to $251,412 thousand as of June 30, 2023, compared to $178,237 thousand at the end of 2022, representing an increase of 40.9%[164]. - Non-current borrowings rose to $143,613 thousand, up 133.3% from $61,575 thousand at the end of 2022[164]. - The company’s total equity reached $163,250 thousand, up from $109,010 thousand, indicating a growth of 49.8%[190]. Cash Flow - For the six months ended June 30, 2023, cash generated from operating activities was $15,023,000, a decrease of 55.7% compared to $33,890,000 for the same period in 2022[135]. - Net cash inflow from operating activities was $14,961,000, down from $32,563,000 in the previous year, reflecting a significant decline[135]. - Cash outflow from investing activities totaled $83,021,000, compared to $1,729,000 in the prior period, indicating increased investment expenditures[135]. - Cash inflow from financing activities was $83,984,000, a substantial increase from a cash outflow of $32,068,000 in the same period last year[135]. - The net increase in cash and cash equivalents was $15,924,000, contrasting with a decrease of $1,234,000 in the previous year[135]. - As of June 30, 2023, the total cash and cash equivalents amounted to $35,348,000, up from $23,680,000 at the end of the previous period[135]. Shareholder Information - The company did not recommend the distribution of an interim dividend for the period[44]. - The company has implemented a share option scheme approved by shareholders on March 2, 2023[98]. - The total number of issued ordinary shares as of the report date was 500,000,000[104]. - The total number of shares available for issuance under the stock option plan is 50,000,000 shares, representing 10% of the total issued shares[143]. - The company has not granted, exercised, or allowed any stock options under the stock option plan since its adoption on March 2, 2023[143]. Risk Management - The company continues to face various financial risks, including market, credit, and liquidity risks, which are managed through established financial policies[197]. - The company has not changed its risk management policies since the end of the last fiscal year, maintaining its approach to financial risk management[198]. - The company faces foreign exchange risks due to currency fluctuations, as its revenues are denominated in USD while some expenses are in RMB and JPY[72].
洲际船务(02409) - 2023 - 中期财报