KUALA LUMPUR(Aug 23): Malaysian Bulk Carriers Bhd (Maybulk), which is controlled by tycoon Robert Kuok, saw its second quarter net loss expand about 14 times year-on-year to RM151.27 million from RM10.75 million, as it recognised an impairment loss from the disposal of its former associate, Singapore-listed PACC Offshore Services Holdings Ltd (POSH).

Revenue for the quarter ended June 30, 2018 (2QFY18) retreated 19% to RM57.49 million from RM70.69 million, its quarterly results filing today showed.

On May 11, Maybulk's shareholders approved of the disposal of the 21.23% stake the group held in POSH. After accounting for Maybulk's share of POSH results, the carrying amount of POSH was written down to its fair value, less costs to sell, resulting in an impairment loss of RM147.66 million.

Consequently, the group recorded a net loss of RM165.62 million in the first six months of FY18, versus a net loss of RM43.96 million in 1HFY17; cumulative revenue was down 18% to RM111.75 million from RM135.66 million.

On prospects, Maybulk said the Baltic Dry Index — a shipping and trade index which measures the change in cost of transporting various raw materials — averaged 1,217 in the first half of 2018, compared with 975 in the first half of 2017.

“Global seaborne trade has grown, but we expect continued volatility for the rest of 2018. In the first half of 2018, there were fewer scrapping as compared to the same period last year. Increasing cost of new builds and higher steel prices have dampened new building orders,” the group said.

Nevertheless, its board is cautiously optimistic on the dry bulk market for the balance of the year.

Maybulk shares were down 1.7% to 58 sen today, and for a market capitalisation of RM580 million. The stock has retreated 25% from a year ago.