CYPRUS: Ship management revenues decline 1% in 1H 2019

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Cyprus ship management revenues decreased slightly by 0.95% to €523 mln in the first six months of 2019 corresponding to 4.9% of GDP (as turnover) which is unchanged.

According to the Central Bank of Cyprus ship management survey, revenues reached €523 mln during the first half of the year (January-June), recording a decrease of €5 mln compared to the same period of 2018.

The main exporting destinations for the services of the ship management industry include Germany, Greece, Malta and Singapore.

The industry’s expenses increased by €26 mln to €442 mln during the period under review and comprised mostly of crew expenses (64%), ship management (24%) and administration (12%).

“The shipping industry is currently in a transition state, particularly in light of the new environmental standards and regulations that will be enforced by the International Maritime Organization (IMO) in 2020,” said the survey.

It added: “The ship management industry needs to plan in advance before the enforcement of these regulations, in order to minimise any negative effects on profitability during the transition process.”

Ship management services encompass crew, technical and full management operations, and accounted for 83% of the industry’s revenues, which is 9% higher than H2 2018.

Germany remains the most important revenue source with a contribution of 53%, followed by Malta with 11%.

Companies managing between 1 and 5 ships accounted for 46% of ship management companies but generated only 3% of the industry’s revenues.

Crew management services decreased slightly to 46% of the total amount of ship management revenues in 2019H1, while full-management contracts remained stable at 49%.