$111m loss

Aries Maritime plunged over $100m further into the red in the third quarter as a huge spot market exposure took its toll.

Nick Fistes.

Nasdaq-listed Aries lost $110.9m for the three months to 30 September, dwarfing the $4.9m loss posted this time a year ago.

Aries, which had eight of its 11 vessels trading the spot market during the quarter, says a laboured tanker market, dry-dockings and the economic environment are to blame for the reversal.

Revenue collapsed from $21.5m to $12.2m year-on-year as vessel utilisation slipped to 77.3%. Time charter equivalent rates for the quarter retreated to $9,675 daily from $13,861 per day 12 months ago.

The company, which today announced plans to quit the container sector, says its 2,917–teu MSC Seine (built 1990) failed to generate any revenue for two out of three months during the quarter.

Allan Shaw, CFO of GrandUnion controlled Aries, said: “In a few weeks, we have strengthened Aries’ balance sheet and have taken significant steps to restructure and reposition with the purpose of creating value for all stakeholders."

Losses in the first nine months of the year stretched to $117.9m, against an $8.2m reversal at this stage in 2008.

Aries presently has a fleet of 14 vessels, comprising nine product tankers, two container ships and three capesize bulkers.

Today, it announces the addition of a further six vessels alongside the purchase of a shipmanagement company from GrandUnion. It has also penned a provisional deal to sell its two boxships.

(Click here to read more about Aries’ reshuffle.)

GrandUnion took control of Aries in October. The Greek shipowner headed by Nick Fistes and Zolotas received nearly 19 million Aries shares in exchange for three capesize bulkers.

Although GrandUnion only owns 34.2% of Aries' outstanding shares, Rocket Marine has given the company the voting rights for its 36.8% shareholding.

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