WELLARD has completed the first half of 2020-21 financial year with a US$1.6 million net loss - which was not bad considering the impacts of COVID-19 on regulatory restrictions and logistics challenges which incurred costs and required "time consuming deviations to complete crew changes in ports outside our trading routes", the company said last week.
The net loss was slightly more than the previous first half financial result in 2020 at US$1.4m, and was due to a 48 per cent reduction in revenue on that period, at US$18.2m.
The live export carrier said that was due to the sell off of the Ocean Shearer which reduced the group's fleet size to just three vessels, the Ocean Ute, Swagman and Drover.
The Ocean Ute also had an extended off-hire duration at its scheduled October dry dock.
"We were on track to add to our financial year 2020 profit in the first half of 2021, but a couple of events in the middle of the period combined to prevent that from occurring, which is frustrating," said Wellard executive chairman John Klepec.
"As noted in our AGM presentation in November 2020, the temporary suspension of the New Zealand live cattle trade in September after the tragic loss of Gulf Livestock 1, her crew and cargo, caused us to reroute and part-load ships.
"In addition, an unscheduled extension to the dry docking of the Ocean Ute negatively impacted its availability.
"These events increased costs and reduced revenue.
"Fortunately, the cost out program and balance sheet overhaul we have achieved in the past 18-24 months allowed us to weather these operational changes."
Mr Klepec said the group has had a "promising start to the second half of 2021 with very high available vessel utilisation and high overall utilisation locked in for all of the third quarter and for a large part of the fourth quarter of the financial year 2021".
"This utilisation is pleasing considering the fall in the number of live cattle and sheep exports from our Australian home market, which is placing pressure on vessel charter rates as ship owners compete for a smaller number of available charters," he said.
The Ocean Ute is booked up until late June, the Ocean Drover until late May and the Ocean Swagman until mid May.