Erria's deficit DKK 24.6 million
SHIPPING: The annual report of the ships showed a total loss of DKK 38.2 million in 2008 compared to profits in 2007 of DKK 7.8 million. The shipping company expects a deficit in 2009 as well
Despite considerable employment of the chemical tankers, the global bank crisis caused difficulties for the cargo owners in reaching the necessary payment guarantees, which then caused a decrease of 15 to 20 per cent in charter hiring.
The shipping company expects an increase in net turnover of DKK 5 to 10 million. The growth is due to more ship in commercial and technical management already agreed upon.
2009 will be a difficult year so the shipping company does not expect positive total income before 2010.
With the current market situation Erria do not expect profits in selling ships. Insecurity is especially related to the container cargo rates, the USD exchange rate and oil prices.
To strengthen the future liquidity of the shipping company, the board will at the general meeting pose a suggestion of issuing convertible bonds worth of at least DKK 20 million with the subscription consent of the three largest shareholders and in addition enter a long-termed bank financing agreement.
Conditions will be stated more specified in the summoning to the general meeting.
Source: maritimedanmark.dk
