Oleander cargo ship operator Bermuda Container Lines has suffered a $49,000 drop in half-year profits as a result of unexpected repairs required to the ship during March and April.

The company made a $1,990,738 profit for the first six months of 2007, helped largely by a 175 percent increase in investment income.

However, the Hamilton-based company is reporting a soft market in cargo volumes for the third quarter and is not expecting to see that situation change during the remainder of the month.

According to its interim six-month report BCL's operating earnings declined 69 percent over the period due to the cost of the Oleander dry-docking.

The dry-docking was scheduled but was prolonged because of repairs that came to light, including those to the ship's propellers.

While significant gains from investment income helped the company's bottom line during the half-year the recent stock market turmoil is expected to have resulted in poorer results for the third quarter.

Asked about the soft cargo volume market to Bermuda, BCL President Geoffrey Frith said: "The freight market to Bermuda has been level or slightly down this past year and I do not expect that to change for the remainder of the year.

"Bermuda is a relatively mature economy and being a mature industry we do not expect to see a huge growth."