Mercator Lines (Singapore), the international dry bulk shipper for India and China, says it has achieved a net profit of US$27.8 million ($38.9 million) for the nine-month period from April to Dec 2009, a decline of about 55% compared to the corresponding period in the previous year.

The group’s revenue during the nine months of the current fiscal year (FY2010) dropped to US$105 million from US$120 million achieved for the same nine-month period in the previous fiscal (FY2009).

The drop in revenue and net profit is mainly due to a decline in average spot market rates compared with the previous year and renewal of fresh contracts at rates lower than the previous rates.

In addition, capacity lost due to dry docking for two vessels and a minor vessel breakdown also contributed to the decline.

The group believes that with a rebound in the spot market, there should be an improvement in revenues and profits going forward which should help the company to partially offset losses from expiry of high-earning long-term contracts.