KUALA LUMPUR: Malaysian Bulk Carriers Bhd (Maybulk) swung back to profit in the financial year ended Dec 31, 2021 (FY21) with a net profit of RM192.53mil against a net loss of RM20.78mil a year ago.

       “The positive results for FY21 was mainly due to the increase in operating profit, as well as non-recurring items of gain on disposal of property, plant and equipment, reversal of vessel impairments, and the gain on derecognition of a joint venture,” Maybulk said in the notes accompanying its financial results.

       Its revenue in FY21 stood at RM207.04mil, up 17.65% from RM175.99mil posted in the preceding year.

       In the fourth quarter ended Dec 31, 2021 (4Q21), Maybulk posted a net profit of RM31.9mil against net loss of RM49.78mil on the back of a 14.6% improvement in revenue to RM48.13mil from RM42mil a year earlier.

       Maybulk said in 4Q21 the dry bulk shipping market came off from its peak in October.

       It said China’s energy crunch started to ease by the increasing domestic coal production and the slowing down of industrial activities also reduced iron ore and coking coal imports.

       As such, the freight market experienced a significant drop in the fourth quarter.

       “Despite the correction and the seasonal softness in 1Q22 thus far, the overall outlook for the freight and second-hand ship market remains generally positive. With a limited fleet supply growth and near-term factors like port congestion, fleet capacity is expected to stay relatively tight.

       “The overall supply-demand balance in the bulk carrier sector remains supportive with tonne-mile demand projected to grow by 2.2% in 2022 versus fleet growth of 2.0%,” Maybulk said.

       However, it noted there were other factors such as geopolitical instability, regional conflicts, trade wars and civil unrest that may impact the shipping market this year.