Norway-listed Jinhui Shipping and Transport Limited reported an over five-fold leap in fourth-quarter pretax profit on Monday amid high freight rates and ship sales, and said its market remained strong. Pretax profit at Jinhui Shipping, controlled by Hong Kong's Jinhui Holdings Co Ltd, rose to $47.6 million in October-December from $8.8 million a year earlier. Earnings were boosted by a net gain of $16.3 million on the sale of two vessels during the quarter, the company said.

Jinhui Shipping shares surged over 5 percent in Oslo on the result, but later trimmed gains to trade up 1.0 percent at 29.50 Norwegian crowns ($4.65) by 1027 GMT.

Freight rates remained at a "very firm level" by mid-February, the company said.

"At this point in time, the board expects that the market will continue to be volatile in 2005 but the fundamentals in dry bulk shipping remain favourable," Jinhui Shipping and Transport said in a statement.

"The major downside risk of the shipping market still remains...a sudden downturn of the Chinese economy."

Full-year 2004 net profit more than tripled, rising to $50.4 million from $11.6 million in 2003, in line with guidance from February 3 that net profit could increase by over 300 percent. Jinhui Shipping proposed a dividend of $0.18 per share for a total payout of $15.1 million or 30 percent of net earnings, satisfying Jinhui Holdings' guidance for a dividend equal to no less than 25 percent of 2004 profit.

Jinhui Holdings is scheduled to report further fourth-quarter results on February 28.

Copyright Reuters, 2005