Green Reefers hit by slow market

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Carl Collen

BY CARL COLLEN

Green Reefers hit by slow market

The Norwegian group has recorded a loss of US$12.8m during the third quarter of the year

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A slow reefer market during the third quarter of the year has had an impact on Green Reefer's third quarter results, the group has said, with the company reporting a loss of US$12.8m for the period compared with a loss of US$11.3m in 2007.

Gross operating income for the Norway-based group increased to US$56.1m during the quarter, up from US$45.8m last year, while the operating result before depreciation stood at US$2.2m.

Soaring costs were reflected in average daily vessel operating expenses of US$6,800 for 2008, compared with an average of US$5,800 the previous year. Year-on-year vessel operating expenses in the quarter jumped 10 per cent.

"World financial turmoil is having an effect on the reefer market, notably on the company's core trade from Norway to the Baltic and Black Sea, as well as on the meat trade from the US and Brazil to Russia and the Ukraine," the group's board of directors said in a statement. Estimates for worldwide GDP growth and expectations of trade flows have been cut back significantly - however, demand for transport of food is likely to be less influenced by reduced growth.

"The company continues its efforts to optimise resources and is committed to improving results moving forward," the board added.

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