GRIN - Grindrod Shipping (GRIN) - Another strong quarter

Second quarter financial results come in above expectations. Grindrod Shipping reported above-expectation financial results for the most recent quarter boosted by higher-than-expected shipping rates and lower daily operating costs. Reported revenues for the quarter were $161.6 million including $30 million from the sale of a ship. Average TCE rates increased compared to first-quarter rates and surpassed our expectations. This wasn't just a top-line story. Equally impressive, operating costs per day declined, bucking a trend seen by other shippers. Administrative expense also declined.The upcoming third quarter might not surpass the second quarter, but it will still be good. Shipping rates have come down in recent months. That said, Grindrod has locked in about 70% of its shipping days at rates not too far below the second quarter. We would expect third quarter revenues to be slightly below second quarter results absent revenues from ship sale revenues. Read More >>