Courage Marine Group, the dry bulk shipper of raw materials, recorded a net profit of US$5.2 million ($7.1 million) for the three months ended 30 June 2010 (2Q2010) compared to a net loss of US$0.9 million in 2Q2009.

Group turnover surged 168% in 2Q2010 to US$16.3 million from US$6.1 million in 1Q2009. This was due to the steady recovery in dry bulk rates and better fleet utiliation, which was around 90% in 2Q2010 given the higher demand from the commodity trading, especially in Greater China Region compared to the fleet utiliation of around 70% in 2Q2009.

The BDI has dropped from 4,200 level in May to the 2,000 level in June.

In combination with effective cost control and higher dry bulk rates, gross profit margin improved to 34.1% in 2Q2010.

Courage Marine says it disposed a Capesize vessel, MV Cape Ore, in May and recorded a gain of US$0.2 million. The group did not dispose any asset in 2Q2009.

The net decrease in cash and cash equivalents of US$21.3 million from US$43.2 million as at 31 December 2009 to US$21.8 million as at 30 June 2010 was due to vessels purchase, dividend payout and repayment of bank borrowings. However, the cash flow from operations remained robust at US$7.1 million in 2Q2010 and the group maintained a net cash position.