Precious Shipping

Precious Shipping Plc (PSL)
 

PSL’s Q1 2012 loss is its first quarterly loss since 2000, reflecting the steep rate decline since the start of the year and its increased exposure to the spot market. We had expected profits. Handysize rates have since rebounded and PSL should do better for the rest of the year. We have cut our profit estimates for the weaker-than-expected rates. Our target price, still based on SOP, has also been cut as we reduce our vessel valuations to reflect the weak S&P market. However, we remain Neutral on the stock as our year-end SET target implies 11% downside.