(www.MaritimeCyprus.com) The Central Bank of Cyprus has published the results of the Ship Management Survey for the 1st half of 2022. This Survey is conducted biannually and it was launched initially in March 2009 and covers residents of Cyprus who provide ship management services to ship owning companies registered both in Cyprus and abroad.
The main developments concerning the transactions of resident ship management companies, are summarised as follows:
Cyprus’s ship management revenues increased further to €574 million during the first half of 2022 (2022H1), which corresponds to 4,6% of Cyprus’s GDP as turnover. This is the third consecutive increase in the total revenues of the industry, after the decline in economic activity observed in 2020 due the outbreak of the COVID-19 pandemic.
Industry’s revenues by country of payment.
Germany’s contribution decreased from 43% in 2021H2 to 39% in 2022H1. An increase was recorded in the share contributions by Greece (17%), the USA (4%) and Malta (4%). In contrast, a decline was recorded for Singapore, Norway and the UK.
The share of full management services increased to 46,8% of the total amount of ship management revenues in 2022H1. Similarly, crew-management services increased from 43% in 2021H2 to 49,1% of the revenues in 2022H1. These contributions are close to
the levels observed during the second half of 2020 and the first half of 2021.
Industry’s revenues by flag registration.
The choice of Flag is a strategic decision in ship-owning operations, particularly in the case of open registries that provide ship owners with considerable advantages in terms of the legal and regulatory framework surrounding ship operations. In 2022H1, the share of revenues collected from the provision of ship management services to ships carrying a foreign flag remained steady at 93%.
Ship management expenses dropped to €404 million in 2022H1, which when combined with improved revenues could be suggestive of an increase in profitability for the period under consideration.
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Source: Cyprus Central Bank
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