Shipping is a capital intensive and cyclical business. As such, it is vitally important that we maintain a robust balance sheet.
We remain focused on Handy segments and are managing our business to deliver positive contributions even in a weak market and to safeguard our strong cash position and EBITDA generation
Over the long term, the Group aims to maintain a conservative consolidated net gearing of no greater than 50%, which we believe is sustainable over all stages of the shipping cycle.
The Group made a US$100.9 million provision in 2014 for the remaining charter periods of Handysize and Handymax time charter contracts. The provision will be released back to the income statement in the periods in which the charter payments for these vessels are due from 2015 to 2019