Ship Management Revenues Reach 819 Million Euros in 2013

Revenues from Cyprus’ ship management industry reached €417 million in the second half of 2013, recording an increase of 3.72% compared with €402 million in the first half of the same year, the Cyprus News Agency reports.

According to the Ship Management Survey compiled by the Central Bank of Cyprus, ship management’s contribution to Cyprus GDP reached 5.1%, which is the highest figure since the survey was launched. 

Despite the ongoing crisis, ship management has proven its resilience, as it generated revenues totalling €819 million in 2013 overall, a year when the Cypriot economy plunged into a deep recession as result of a €10 billion bailout that featured a steep haircut of deposits over €100,000 to recapitalise the island’s troubled banks.

A total of 85% of the revenues came from ships carrying foreign flag and 15% by Cypriot ships, compared with 82% and 18% respectively in the first half of 2013.

The majority of payments for the second half of 2013 originated from Germany, totaling 66%. Contributions by other countries remained relatively stable except for an increase by Greece and a decrease by the Marshall Islands.

Most of the industry’s revenues derived from the provision of full, crew and technical management services. Full management services remained the most important segment with notable contributions from Russia and Malta. In the case of crew management services, nearly half of the revenues originated from Germany.

Ship management expenses increased despite some significant reductions during the previous periods. Cross–border expenses of the industry, excluding expenses paid in Cyprus, increased to €368 million.

Most of these expenses were directed to the Philippines, Poland and Ukraine and concerned wages (55%) paid to seafarers. 20% of the expenses were paid in Cyprus and concerned, primarily, administration expenses.

SOURCE: GOLD NEWS

Show more
Show less

Popular Practices

© Accountants in Cyprus. All Rights Reserved.
Accountants In Cyprus | Accounting Portal - LogoAccountants In Cyprus | Accounting Portal - Logo