TIDMHCL
RNS Number : 5493J
Hellenic Carriers Limited
08 April 2015
2014 Financial Results
Press Release 8 April 2015
HELLENIC CARRIERS REPORTS PRELIMINARY RESULTS FOR THE
YEAR ENDED 31 DECEMBER 2014
Hellenic Carriers Limited, ("Hellenic" or the "Company") (AIM:
HCL), through its subsidiaries operates a fleet of dry bulk vessels
that transport iron ore, coal, grain, steel products, cement,
alumina, and other dry bulk cargoes worldwide. The Company is
pleased to report today its Preliminary Results for the year ended
31 December 2014.
2014 HIGHLIGHTS
FINANCIAL
Þ 89% increase in revenue: US$ 20.6 million (2013: US$ 10.9 million)
Þ 233% increase in EBITDA(1) : US$ 1.0 million (2013: US$ 0.3 million)
Þ 2% reduction in operating lossbefore non-cash impairment
charge: US$ 9.0 million (2013: US$ 9.2 million)
Þ 10% reduction in net lossbefore non-cash impairment charge:
US$ 12.8 million (2013: US$ 14.2 million)
Þ Non-cash impairment charge: US$ 4.2 million (2013: US$ nil)
Þ Gearing ratio(2) at 67.1% as at 31 December 2014 (53.4% as at 31 December 2013)
(1) EBITDA has been calculated as follows: Operating loss +
Depreciation + Depreciation of dry-docking costs + Impairment
charge - Gain/(loss) on sale of vessels - Other operating
income
(2) Gearing ratio is defined as Net Debt to total capitalisation
(debt, net of deferred financing fees less
cash and cash equivalents including restricted cash to net debt and stockholders' equity)
OPERATIONAL
Þ Increase of the fleet size: operation of 5.9 vessels on
average compared to 3.7 vessels in 2013
Þ Achieving higher time charter rates: Time Charter Equivalent
("TCE")-Gross rate of US$ 10,687 (2013: US$ 8,507) outperforming
both the Panamax Average of US$ 7,718 and Supramax Average of US$
9,818 for 2014
Þ Daily Operating expenses of US$ 5,231 (2013: US$ 5,088)
Management Commentary
Fotini Karamanli, Chief Executive Officer of Hellenic Carriers
Limited, stated:
Despite the dry bulk market conditions remaining challenging
during 2014, our operating results improved significantly for the
year as compared to 2013. Our revenues and EBITDA increased by 89%
and 233% respectively and we achieved a 25% increase in our gross
daily rate in 2014 outperforming the average Panamax and Supramax
daily rates. In the current market environment, we have been able
to renew our fleet, contain our costs and achieve high fleet
utilization.
While the timing of the market recovery is yet unclear, we note
that the pace of ordering new vessels has slowed down, scrapping
has picked up and therefore, the supply side is expected to improve
from 2016 onwards. Given that we do not anticipate a slowdown in
the world economy, we remain cautiously optimistic in respect of
the longer term prospects of the market.
Fleet Developments
For the year ended 31 December 2014, the Company operated
through its subsidiaries a fleet of 5.9 vessels on average compared
to 3.7 vessels for the year ended 31 December 2013. Following the
addition of two newbuilding Kamsarmax vessels (M/V Odysseas and M/V
Konstantinos II) in the second half of 2013 and one second-hand
Supramax vessel (M/V Pistis) in January 2014, the operating fleet
in 2014 included one Panamax, two Supramax, one Handymax and two
Kamsarmax vessels with an aggregate carrying capacity of 384,864
dwt and a weighted average age of 10.9 years as of 31 December
2014.
On 26 March 2015, the 1995-built, 44,809 dwt Handymax vessel M/V
Hellenic Horizon was sold to an unaffiliated third party for a
total cash consideration of US$ 3.8 million. As at the delivery
date the vessel had a carrying value of US$ 6.9 million. The loss
resulting from the sale of the vessel, after deducting all expenses
directly related to the sale was US$ 3.9 million.
Fleet Deployment
During 2014 the performance of the dry bulk freight market was
not as strong as initially anticipated and further deteriorated by
the year end with rates coming under pressure as a result of
factors such as: the reduction of coal shipments into China and
Europe, the ban on Indonesian exports of minor metal ores, the
disruption in grain shipments out of South America (and in
particular Argentina) and lower port congestion combined with the
continued supply of new tonnage entering the market.
During this period the Company decided against locking in the
vessels for the long term and focused on actively trading in the
spot market and under short term period fixtures, thus being able
to take full advantage of pockets of opportunities presented due to
the freight market volatility. The 2014 Time Charter
Equivalent-gross rate amounting to US$ 10,687 outperformed the
Panamax Average of 4 T/C Routes (US$ 7,718) and the Supramax
Average of 6 T/C Routes (US$ 9,818) as well as their combined
average of US$ 8,768 for the same period.
Full year 2014 Results
Operating and Financial highlights
The following tables summarise the operating and financial
results for full year 2014.
Year ended 31
Selected Operating data December
2014 2013
---------- --------
Unaudited Audited
Average number of operating
vessels 5.9 3.7
Number of operating vessels
at year end 6.0 5.0
Total dwt at year end 384,864 332,476
Ownership days (1) 2,184 1,335
Available days (2) 1,927 1,284
Operating days (3) 1,851 1,228
Fleet utilisation (4) 96.1% 95.6%
Average daily results (in US$)
Time Charter Equivalent (TCE)
Gross rate (5) 10,687 8,507
Time Charter Equivalent (TCE)
Net rate (6) 8,130 7,614
Average daily vessel operating
expenses(7) 5,231 5,088
(1) Ownership days are the cumulative days in a period during
which each vessel is owned by the respective vessel owning
company.
(2) Available days are ownership days less the days that the
vessels are at scheduled off-hire for maintenance or vessel
repositioning.
(3) Operating days are the available days less all unforeseen
off-hires.
(4) Fleet utilisation is measured by dividing the vessels'
operating days by the vessels' available days.
(5) TCE-Gross is defined as vessels' total revenues divided by
the number of the available days for the period.
(6) TCE-Net is defined as vessels' total revenues less voyage
expenses divided by the number of the available days for the
period.
(7) Average daily vessel operating expenses is defined as vessel
operating expenses divided by ownership days.
Selected Income Statement Data
(Amounts expressed in thousands
of U.S. Dollars,
except share and per share Year ended 31
data) December
2014 2013
----------- -----------
Unaudited Audited
Revenue 20,595 10,923
EBITDA (1) 1,030 272
Operating loss (13,190) (9,161)
Adding back impairment loss 4,185 -
Operating loss before non-cash
items (9,005) (9,161)
Net Finance costs (3,790) (5,036)
Net loss before non-cash impairment
charge (12,795) (14,197)
Loss for the year (16,980) (14,197)
Loss per share (US$):
Basic and diluted LPS for the
year (0.37) (0.31)
Weighted average number of shares 45,616,851 45,616,851
(1) EBITDA has been calculated as follows: Operating loss +
Depreciation + Depreciation of dry-docking costs + Impairment
charge - Gain/(loss) on sale of vessels - Other operating
income
During 2014, the Company, through its subsidiaries, operated 5.9
vessels which earned on average net earnings (TCE-net) of US$ 8,130
per day compared to 3.7 vessels and average net earnings of US$
7,614 per day in 2013, an increase of 6.8%. Although average gross
earnings (TCE-gross) achieved amounted to US$ 10,687 per day
compared to US$ 8,507 per day in 2013, the vessels in 2014 had to
perform greater ballast legs in search for more profitable routes
and as a result, the cost of bunkers (included in voyage expenses)
increased.
For the year ended 31 December 2014, total revenues were US$
20.6 million (2013: US$ 10.9 million), an increase of US$ 9.7
million. The increase in revenues is attributed to the increase in
the number of vessels operated during the period, in conjunction
with higher dry bulk freight rates achieved during 2014 as compared
to 2013. The fleet utilisation during 2014 was 96.1% compared to
95.6% in 2013.
Voyage expenses increased to US$ 4.9 million (2013: US$ 1.1
million). The increase in voyage expenses is mainly attributable to
the increase in the number of vessels operated during 2014 as
compared to 2013 as well as the higher cost of bunkers as a result
of greater ballast legs as outlined above.
Vessel operating expenses increased by US$ 4.6 million to a
total of US$ 11.4 million for the year ended 31 December 2014. The
increase is mainly due to the increase in the number of vessels
operated during 2014 as compared to 2013. The daily operating
expenses for the year ended 31 December 2014 were US$ 5,231 (2013:
US$ 5,088).
The Company's general and administrative expenses for the year
ended 31 December 2014 decreased by US$ 0.6 million to US$ 1.0
million (2013: US$ 1.6 million) .
Earnings before Tax, Interest, Depreciation and Amortisation
(EBITDA) was reported at US$ 1.0 million for the year ended 31
December 2014 (2013: US$ 0.3 million).
Operating loss amounted to US$ 13.2 million for the year ended
31 December 2014 (2013: US$ 9.2 million). For the year ended 31
December 2014, the operating loss figure included a non-cash
impairment charge of US$ 4.2 million relating to M/V Hellenic
Horizon.
As a result of the significant drop in asset values by 31
December 2014, an impairment indication was identified and the
relevant tests were performed in order to determine the vessels'
recoverable amounts. The book value of one vessel was adjusted to
her recoverable amount and an impairment charge was reported for
the year ended 31 December 2014 in the amount of US$ 4.2 million
(31 December 2013: US$ nil). The impairment charge of US$ 4.2
million relates only to M/V Hellenic Horizon, built in 1995, with
less than 6 years remaining useful life as of 31 December 2014.
Excluding the above mentioned non-cash item, Hellenic reported for
the year ended 31 December 2014 an operating loss of US$ 9.0
million compared to an operating loss of US$ 9.2 million for the
year ended 31 December 2013.
The total finance expense comprising of i) interest payable on
bank debt, ii) amortization of deferred loan fees and iii) other
finance costs, was reported at US$ 3.9 million for the year ended
31 December 2014, compared to US$ 5.4 million for the same period
of 2013. Interest payable on bank debt decreased by US$ 0.7 million
and the amortization of deferred loan fees decreased by US$ 0.8
million. The weighted average interest rate for the year ended 31
December 2014 was 3.56% decreasing considerably from 4.90% reported
in 2013.
Net loss for the year ended 31 December 2014 amounted to US$
17.0 million or US$ 0.37 basic loss per share calculated on
45,616,851 weighted average number of shares. Net loss for the year
ended 31 December 2013 amounted US$ 14.2 million or US$ 0.31 basic
loss per share calculated on 45,616,851 weighted average number of
shares.
Financial Position and Cash Flow highlights
Selected Financial Position Year ended 31
Data December
(Amounts expressed in thousands
of U.S. Dollars) 2014 2013
---------- --------
Unaudited Audited
Vessels, net 128,469 124,701
Restricted cash 200 200
Other non-current assets - 1,617
Total non-current assets 128,669 126,518
Cash and cash equivalents including
restricted cash 6,822 27,504
Other current assets 8,210 7,094
Total current assets 15,032 34,598
---------- --------
Total assets 143,701 161,116
Total equity 43,897 60,877
Total bank debt 96,584 97,326
Other liabilities 3,220 2,913
Total liabilities 99,804 100,239
Total equity and liabilities 143,701 161,116
Net Debt (1) 89,562 69,622
(1) Net Debt has been calculated as follows: Total Bank Debt -
Cash and Cash equivalents
including restricted cash
Year ended 31
Selected Cash Flow Data December
(Amounts expressed in thousands
of U.S. Dollars) 2014 2013
---------- ---------
Unaudited Audited
Cash flows provided by/ (used
in) operating activities 5,141 (617)
Cash flows used in investing
activities (12,290) (29,727)
Cash flows (used in)/ provided
by financing activities (4,639) 20,055
Debt / Financing Activities & Capitalisation
As at 31 December 2014, total bank debt (divided into three
facilities) was reported at US$ 96.6 million compared to US$ 97.3
million at 31 December 2013. The amount of US$ 2.5 million was
drawndown in January 2014 to partly finance the acquisition of M/V
Pistis. Scheduled principal payments during 2014 amounted to US$
3.4 million.
As at 31 December 2014, Hellenic and its subsidiaries are in
compliance with debt covenants.
Cash and cash equivalents including restricted cash (current and
non-current) were reported at US$ 7.0 million compared to US$ 27.7
million at 31 December 2013. Restricted cash (current and
non-current) reported at 31 December 2014 amounted to US$ 0.6
million compared to US$ 9.5 million at 31 December 2013. The
decrease in restricted cash represents mainly the utilization of
the proceeds from the sale of M/V Hellenic Sea (US$ 5.4 million)
which were pledged with the respective lender until January 2014
and were then transferred as bank debt towards the acquisition of
M/V Pistis, as well as the release of a bank guarantee amounting to
US$ 3.4 million.
As at 31 December 2014, net debt amounted to US$ 89.6 million
(2013: US$ 69.6 million). Consequently, the gearing ratio being
defined as net debt (debt less cash and cash equivalents) to total
capitalisation amounted to 67.1% and 53.4% at 31 December 2014 and
31 December 2013, respectively.
In relation to cash flows used in investing activities, the
amount of US$ 12.3 million consists mainly of the following
items:
-- The amount of US$ 15.1 million paid during the year ended 31
December 2014 in relation to the acquisition of M/V Pistis
delivered in January 2014.
-- Release of the pledged amount US$ 5.3 million held with one
of our lenders and used to partly finance the acquisition of M/V
Pistis.
-- The amount of US$ 2.2 million represents the total
dry-docking cost for the M/V Pistis and M/V Konstantinos D. which
performed their special surveys during 2014.
Dividend
In order to reinforce the Company's liquidity, the Directors of
the Company recommended that no dividend payment will be made in
respect of the year ended 31 December 2014.
For further information please contact:
Hellenic Carriers Limited
Fotini Karamanli, Chief Executive Officer
Alkis Papadopoulos, Chief Financial Officer
E-mail: info@hellenic-carriers.com +30 210 455 8900
Charles Stanley Securities
Nominated Adviser & Broker
Mark Taylor +44 (0) 207 149 6000
Carl Holmes +44 (0) 207 149 6000
Capital Link
Nicolas Bornozis +1 212 661 7566 (New York)
Maria Chercheletzi +44 (0) 20 3206 1322 (London)
E-mail: helleniccarriers@capitallink.com
Further Information - Notes to Editors
About Hellenic Carriers Limited
Hellenic Carriers Limited operates through its subsidiaries a
fleet of dry bulk vessels that transport iron ore, coal, grain,
steel products, cement, alumina, and other dry bulk cargoes
worldwide. The fleet consists of five vessels, including one
Panamax, two Supramax and two Kamsarmax vessels with an aggregate
carrying capacity of 340,055 dwt and a weighted average age of 9.4
years.
Hellenic Carriers is listed on the AIM of the London Stock
Exchange under ticker HCL.
CONSOLIDATED INCOME STATEMENT
For the year ended 31 December 2014
(Amounts expressed in thousands of U.S. Dollars, except share
and per share data)
31 December
------------------------
2014 2013
----------- -----------
Unaudited Audited
----------- -----------
US$'000 US$'000
Revenue 20,595 10,923
----------- -----------
Expenses and other income
Voyage expenses (4,722) (1,087)
Voyage expenses - related
parties (206) (60)
Vessel operating expenses (11,425) (6,793)
Management fees - related
parties (2,184) (1,153)
Depreciation (9,721) (7,516)
Depreciation of dry-docking
costs (1,592) (1,917)
Impairment loss (4,185) -
General and administrative
expenses (1,028) (1,558)
Other operating income 1,278 -
Operating loss (13,190) (9,161)
Finance expense (3,884) (5,413)
Finance income 12 403
Foreign currency loss,
net 82 (26)
(3,790) (5,036)
----------- -----------
Loss for the year (16,980) (14,197)
=========== ===========
Loss per share (US$):
Basic and diluted LPS
for the year (0.37) (0.31)
Weighted average number
of shares 45,616,851 45,616,851
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the year ended 31 December 2014
(Amounts expressed in thousands of U.S. Dollars)
31 December
---------------------
2014 2013
---------- ---------
Unaudited Audited
---------- ---------
US$'000 US$'000
Loss for the year (16,980) (14,197)
Other comprehensive income
Other comprehensive income
to be reclassified to
profit and loss in subsequent
periods:
Reclassification during
the year to profit or
loss - 1,158
Net other comprehensive
income reclassified to
profit and loss - 1,158
---------- ---------
Total comprehensive loss
for the year (16,980) (13,039)
========== =========
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 31 December 2014
(Amounts expressed in thousands of U.S. Dollars)
31 December
--------------------
2014 2013
---------- --------
Unaudited Audited
---------- --------
US$'000 US$'000
ASSETS
Non-current assets
Vessels, net 128,469 124,701
Advances for vessel acquisition - 1,616
Office furniture and equipment - 1
Restricted cash 200 200
---------- --------
128,669 126,518
---------- --------
Current assets
Inventories 770 458
Trade receivables, net 2,831 1,701
Claims receivable 643 238
Available for sale investments,
net of impairment - -
Due from related parties 3,618 3,845
Prepaid expenses and other
assets 348 852
Restricted cash 431 9,325
Cash and cash equivalents 6,391 18,179
---------- --------
15,032 34,598
---------- --------
TOTAL ASSETS 143,701 161,116
========== ========
EQUITY AND LIABILITIES
Shareholders' equity
Issued share capital 46 46
Share premium 54,355 54,355
Capital contributions 10,826 10,826
Accumulated deficit (21,330) (4,350)
---------- --------
Total equity 43,897 60,877
---------- --------
Non-current liabilities
Long-term debt 93,325 94,081
---------- --------
93,325 94,081
---------- --------
Current liabilities
Trade payables 1,713 1,320
Current portion of long-term
debt 3,259 3,245
Accrued liabilities and
other payables 1,397 1,325
Deferred revenue 110 268
6,479 6,158
---------- --------
Total Liabilities 99,804 100,239
---------- --------
TOTAL EQUITY AND LIABILITIES 143,701 161,116
========== ========
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the year ended 31 December 2014
(Amounts expressed in thousands of U.S. Dollars, except share
and per share data)
Cash (Accumulated
Issued flow deficit)/
Par share Share Capital hedging Retained Total
Number value capital premium contributions reserves earnings equity
of shares US$ US$'000 US$'000 US$'000 US$'000 US$'000 US$'000
----------- -------- --------- --------- --------------- ---------- ------------- ----------
As at 1
January 2013 45,616,851 0.001 46 54,355 10,826 (1,158) 9,847 73,916
Loss for the
year - - - - - - (14,197) (14,197)
Other
comprehensive
income - - - - - 1,158 - 1,158
----------- -------- --------- --------- --------------- ---------- ------------- ----------
Total
comprehensive
loss - - - - - 1,158 (14,197) (13,039)
As at 31
December
2013 45,616,851 0.001 46 54,355 10,826 - (4,350) 60,877
=========== ======== ========= ========= =============== ========== ============= ==========
Loss for the
year - - - - - - (16,980) (16,980)
Other
comprehensive
income - - - - - - - -
----------- -------- --------- --------- --------------- ---------- ------------- ----------
Total
comprehensive
loss - - - - - - (16,980) (16,980)
As at 31
December
2014 45,616,851 0.001 46 54,355 10,826 - (21,330) 43,897
=========== ======== ========= ========= =============== ========== ============= ==========
CONSOLIDATED STATEMENT OF CASH FLOWS
For the year ended 31 December 2014
(Amounts expressed in thousands of U.S. Dollars)
31 December
---------------------
2014 2013
---------- ---------
Unaudited Audited
---------- ---------
US$'000 US$'000
Operating activities
Loss for the year (16,980) (14,197)
Adjustments to reconcile loss
to net cash flows:
Depreciation 9,721 7,516
Depreciation of dry-docking
costs 1,592 1,917
Impairment loss 4,185 -
Finance expense 3,884 5,413
Finance income (12) (403)
---------- ---------
2,390 246
Increase in inventories (312) (194)
Increase in trade receivables,
claims receivable, prepaid
expenses and other assets (1,032) (1,367)
Decrease/ (Increase) in due
from related parties 227 (134)
Restricted cash 3,400 -
Increase in trade payables,
accrued liabilities and other
payables 626 564
(Decrease)/ Increase in deferred
revenue (158) 268
---------- ---------
Net cash flows provided by/
(used in) operating activities 5,141 (617)
---------- ---------
Investing activities
Acquisition/ improvement of
vessels (15,461) (103)
Advance payments for vessels
under construction - (26,798)
Advance payments for vessel
acquisition - (1,616)
Dry-docking costs (2,188) (1,673)
Restricted cash 5,346 -
Interest received 13 463
---------- ---------
Net cash flows used in investing
activities (12,290) (29,727)
---------- ---------
Financing activities
Proceeds from issue of long-term
debt 2,500 19,300
Repayment of long-term debt (3,440) (3,885)
Restricted cash 148 9,707
Finance expenses paid (3,847) (5,067)
Net cash flows (used in)/ provided
by financing activities (4,639) 20,055
---------- ---------
Net decrease in cash and cash
equivalents (11,788) (10,289)
Cash and cash equivalents at
1 January 18,179 28,468
---------- ---------
Cash and cash equivalents at
31 December 6,391 18,179
========== =========
This information is provided by RNS
The company news service from the London Stock Exchange
END
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