Weak NOL results signal rough seas ahead for container shipping sector
Firms should brace for a challenging FY2013.
Barclays said that NOL results came in worse than expected with a 4Q12 loss of US$96mn. FY2012 ROE was -17%, and the book value per share has dropped by half since end 2008 to US$0.85.
"We do not expect overall industry fundamentals to improve significantly in 2013 given the increasing pace of vessel deliveries. In addition, we also see significant short-term downward risks in the container shipping space given the recent declines in long-haul freight rates," said Barclays.