Erria downgrades expectations
SHIPPING: The shipping company Erria is now expecting to leave 2008 with a deficit of around DKK 8 billion. According to the shipping company major drops in the cargo rates and dollar prices lower than expected cause the downgrading.
The shipping company has adjusted to the effect of the dropping dollar price in the fourth quarter and has as such declared a negative development in currency conversion of shareholdings by the 31st of December 2008, which constitutes DKK 6 billion, it says in the report.
The market of chemical tankers, which had a relatively stabile development in the beginning of the fourth quarter, showed subsequently a heavy drop in cargo rates. Furthermore, the shipping company has chosen a more conservative balance sheet presentation after IFRS, which has caused a revaluation of costs and a devaluation of actives, the management writes.
Erria has also noted a loss in the fourth quarter as a container ship, which was time chartered, now is doing free fares at lower rates because the charter was not able to fulfil its contractual obligations.
Source: maritimedanmark.dk
