New Ship

Aug 21, 2009 (LBO) – Mercantile Shipping Company, a listed company that once had Sri Lanka’s biggest fleet, has taken delivery of the first of a pair of new buildings it ordered built by a Dutch yard. The stock exchange filing showed a gross profit of 17 million rupees in international business in the June 2009 quarter compared with a loss of 1.8 million the year before.

Mercantile Shipping in recent years has been selling off or scrapping its ships as they were old and costly to operate and ordered new vessels to be built.

The company’s stock exchange filing also its existing ship, Safmarine Soyo, has been given on a new charter but at a lower rate than earlier because of the depressed state of the charter market.

Charter rates have fallen in recent months owing to the global trade slowdown and an oversupply of vessels.

The company said in a stock exchange filing that it took delivery of the multi-purpose cargo vessel from Bodewes Ship Yard in the Netherlands.

Financial results for the June 2009 quarter filed with the stock exchange filing showed it made a modest profit solely on chartering a vessel overseas with no voyages in Sri Lankan waters.

Group net profit for the