TIDMHCL
RNS Number : 6283A
Hellenic Carriers Limited
30 September 2015
H1 2015 Financial Results
Press Release 30 September 2015
HELLENIC CARRIERS LIMITED
REPORTS 2015 INTERIM UNAUDITED RESULTS
Hellenic Carriers Limited, ("Hellenic" or the "Company") (AIM:
HCL), an international provider of marine transportation services,
which operates through its subsidiaries a fleet of five dry bulk
vessels that transport iron ore, grain, steel products and minor
bulk cargoes, reports today its Interim Unaudited Results for the
six months ended 30 June 2015.
H1 2015 FINANCIAL HIGHLIGHTS
Þ Revenue: US$ 6.7 million (H1 2014: US$ 10.4 million)
Þ EBITDA(1) (:) US$ 2.0 million negative (H1 2014: US$ 0.8
million positive)
Þ Operating loss before non-cash loss on sale of vessel: US$ 6.7
million (H1 2014: US$ 3.4 million)
Þ Net loss before book loss on sale of vessel: US$ 8.5 million
(H1 2014: US$ 5.3 million)
Þ Book loss on sale of vessel: US$ 4.0 million (H1 2014: US$
nil)
Þ Gearing ratio(2) at 74.0% as of 30 June 2015 (67.1% as of 31
December 2014)
([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)
H1 2015 OPERATIONAL HIGHLIGHTS
Þ Sale of the older and smaller vessel of the fleet (M/V
Hellenic Horizon - 44,809 dwt - 1995 built), reducing the average
age of the fleet to 9.6 years as of 30 June 2015 (10.9 years as of
31 December 2014)
Þ Outperforming the Panamax Average of 4/TC routes and Supramax
Average of 6/TC routes: The TCE-gross rate of US$ 8,164
outperformed both the Panamax Average of US$ 4,999 and Supramax
Average of US$ 6,598 for H1 2015
Þ Improving efficiency of operations: 7% reduction in daily
vessel operating expenses (US$ 4,807 from US$ 5,205 in H1 2014)
Market Commentary
Throughout the first half of 2015, the dry bulk sector has
remained depressed. The BDI dropped to a historical low of 509
points in February, and the index averaged at 623 points during H1
2015, which was the lowest semi-annual average in the history of
the Baltic index since it was first published in 1985. Dry bulk
earnings have come under significant pressure with Panamax and
Supramax average earnings down by approximately 35 - 40%
year-on-year, and ship values are in general following this
downward trend and are currently below the historic 20 year average
values.
Whilst overcapacity remains a concern for the remainder of this
year and 2016, we note that during H1 2015 new building contracting
was down 82% year-on-year, whilst scrapping increased 157% compared
to H1 2014, and projections indicate the lowest fleet growth in
over a decade.
Although demand growth has remained weak during H1 2015,
seaborne dry bulk cargo volumes are usually seasonal in nature with
the end of the year usually becoming more robust. Going forward,
should fleet supply continue to grow at the current restricted
levels, and demand for raw materials continue both from the
developing economies as well as the mature economies, demand may
outpace supply resulting in a slow and steady improvement, paving
the way for a market recovery from 2017 onwards.
Fleet Developments
For the six months ended 30 June 2015, the Company operated
through its subsidiaries an average fleet of 5.5 vessels compared
to 5.7 vessels for the six months ended 30 June 2014. Following the
sale of M/V Hellenic Horizon in March 2015, the operating fleet in
H1 2015 includes one Panamax, two Supramax and two Kamsarmax
vessels with an aggregate carrying capacity of 340,055 dwt and a
weighted average age of 9.6 years as of 30 June 2015.
Fleet details as on the date of the announcement:
Fleet
------------------------------------------------------------------------------------
Carrying
Year Capacity
Vessel Type Yard Built (dwt)
------------------ ----------- ----------------------------- -------- ----------
M/V Hellenic Tsuneishi Shipbuilding
Wind Panamax Corporation, Japan 1997 73,981
------------------ ----------- ----------------------------- -------- ----------
M/V Konstantinos Mitsui Engineering
D Supramax & Shipbuilding, Japan 2000 50,326
------------------ ----------- ----------------------------- -------- ----------
M/V Odysseas Zhejiang Ouhua Shipbuilding
I Kamsarmax Co. Ltd., China 2013 81,662
------------------ ----------- ----------------------------- -------- ----------
M/V Konstantinos Zhejiang Ouhua Shipbuilding
II Kamsarmax Co. Ltd., China 2013 81,698
------------------ ----------- ----------------------------- -------- ----------
Tsuneishi Shipbuilding
M/V Pistis Supramax Corporation, Japan 2004 52,388
------------------ ----------- ----------------------------- -------- ----------
Total Operating Fleet: 5 Vessels 340,055
------------------------------------------------------------------------ ----------
Debt / Financing Activities
As of 30 June 2015, total bank debt (divided into three
facilities) was reported at US$ 95.3 million compared to US$ 96.6
million at 31 December 2014. During 2015 and until the date of this
announcement, two out of the three facilities have been rescheduled
in order to reduce principal payments and extend their maturity,
while the third facility's rescheduling is expected to be finalized
during Q4 2015. Principal payments during H1 2015 amounted to US$
1.3 million and a further US$ 0.5 million is scheduled to be paid
during H2 2015. The Company's loan facilities mature in August
2019, May 2020 and May 2026.
Fleet Deployment
During H1 2015 the performance of the dry bulk freight market
further deteriorated with rates approaching 30-year lows 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 H1 2015 Time Charter
Equivalent-gross rate amounting to US$ 8,164 outperformed the
Panamax Average of 4 T/C Routes (US$ 4,999) and the Supramax
Average of 6 T/C Routes (US$ 6,598) for the same period.
H1 2015 Results
For the six months ended 30 June 2015, Hellenic reported total
revenues of US$ 6.7 million compared to US$ 10.4 million for the
same period of 2014. The fleet utilisation during the period was
reported at 93.5% compared to 95.3% in H1 2014. The decrease in
revenues is mainly attributed to the lower dry bulk freight rates
during H1 2015 compared to H1 2014.
During H1 2015 the Company, through its subsidiaries, operated
an average of 5.5 vessels compared to 5.7 vessels in H1 2014 and
earned on average gross earnings (TCE-gross) of US$ 8,164 per day
compared to US$ 10,914 per day in H1 2014, a decrease of 25.2%. Due
to a US$ 0.9 million loss on bunkers purchased at higher prices
during 2014 and sold at lower prices upon vessels employment to new
charters/trips in 2015 (included in voyage expenses), TCE-net for
H1 2015 fell to US$ 4,963 per day compared to US$ 8,596 per day for
H1 2014, a decrease of 42.3%. Excluding the aforementioned loss on
bunker prices, TCE-net for H1 2015 amounts to US$ 6,064 per day, a
decrease of 30.0% from H1 2014 (US$ 8,657).
Vessel operating expenses during H1 2015 fell to a total of US$
4.8 million from a total of US$ 5.6 million in H1 2014, marking a
decrease of 15.3%. Average daily vessel operating expenses (OPEX)
during H1 2015 were reduced to US$ 4,807 compared to US$ 5,205
incurred in H1 2014, demonstrating management's commitment on
improving operational efficiency. The analysis of the main
categories of OPEX as a percentage of total OPEX during H1 2015 and
H1 2014 is presented below:
H1 2015 H1 2014
-------------------- -------- --------
Crew expenses 64% 61%
-------------------- -------- --------
Insurance 12% 10%
-------------------- -------- --------
Repairs and spares 7% 10%
-------------------- -------- --------
Lubricants 8% 9%
-------------------- -------- --------
Stores 7% 8%
-------------------- -------- --------
Other 2% 2%
-------------------- -------- --------
On 26 March 2015, Arkadia Maritime Corp., owner of the
1995-built, 44,809 dwt Handymax vessel Hellenic Horizon, completed
the sale of the vessel to an unaffiliated third party for a total
cash consideration of US$ 3.8 million. As of the delivery date the
vessel had a carrying value of US$ 6.9 million inclusive of the
unamortised balance of her latest dry-docking. The non-cash loss
resulting from the sale of the vessel, after deducting all expenses
directly related to the sale was US$ 4.0 million.
(MORE TO FOLLOW) Dow Jones Newswires
September 30, 2015 02:01 ET (06:01 GMT)
The operating loss amounted to US$ 10.7 million for H1 2015
compared to an operating loss of US$ 3.4 million for the same
period of 2014. Excluding the non-cash loss on sale of vessel of
US$ 4.0 million, the operating loss for H1 2015 amounts to US$ 6.7
million.
The net loss for H1 2015 amounted to US$ 12.5 million
representing a loss per share of US$ 0.27 calculated on 45,616,851
weighted average number of shares, whereas, the net loss for H1
2014 amounted to US$ 5.3 million, representing a US$ 0.12 loss per
share. Excluding the non-cash loss on sale of vessel of US$ 4.0
million, the net loss for H1 2015 amounts to US$ 8.5 million,
representing a US$ 0.19 loss per share.
Earnings before Tax, Interest, Depreciation and Amortisation
(EBITDA) was reported at US$ 2.0 million (negative) for the six
months ended 30 June 2015 compared to US$ 0.8 million (positive)
for the same period of 2014.
Selected Financial Data:
(US$ in 000's except per share
data) 30.06.2015 30.06.2014
---------------------------------- ----------- ----------
Revenue 6,749 10,390
---------------------------------- ----------- ----------
EBITDA (1) (1,967) 830
---------------------------------- ----------- ----------
Operating loss (10,723) (3,391)
---------------------------------- ----------- ----------
Net Loss (12,514) (5,312)
---------------------------------- ----------- ----------
Weighted average shares (basic
& diluted) 45,616,851 45,616,851
---------------------------------- ----------- ----------
Loss per share (basic & diluted) (0.27) (0.12)
---------------------------------- ----------- ----------
(US$ in 000's except per share
data) 30.06.2015 31.12.2014
------------------------------------ ----------- -----------
Total assets 129,207 143,701
------------------------------------ ----------- -----------
Long-term debt, net of unamortised
arrangement fees 95,336 96,584
------------------------------------ ----------- -----------
Total equity 31,383 43,897
------------------------------------ ----------- -----------
(US$ in 000's except per share
data) 30.06.2015 30.06.2014
-------------------------------- ----------- ----------
Cash flows (used in)/ provided
by operating activities (487) 1,869
-------------------------------- ----------- ----------
Cash flows provided by/ (used
in) investing activities 2,812 (15,694)
-------------------------------- ----------- ----------
Cash flows (used in)/ provided
by financing activities (6,216) 4,286
-------------------------------- ----------- ----------
(1) EBITDA has been calculated as follows: Operating loss +
Depreciation + Depreciation of dry-docking costs + Impairment
charge - Gain/(loss) on sale of vessel - Other operating income
Fleet Operating Data:
H1 2015 H1 2014
-------------------------------- -------- --------
Fleet data:
-------------------------------- -------- --------
Average number of operating
vessels 5.5 5.7
-------------------------------- -------- --------
Number of operating vessels
at period end 5.0 6.0
-------------------------------- -------- --------
Total dwt at period end 340,055 384,864
-------------------------------- -------- --------
Ownership days ((1) () 990 1,080
-------------------------------- -------- --------
Available days ((2) () 834 952
-------------------------------- -------- --------
Operating days ((3) () 780 907
-------------------------------- -------- --------
Fleet utilisation ((4) () 93.5% 95.3%
-------------------------------- -------- --------
Average daily results (in
US$):
-------------------------------- -------- --------
TCE rate - Gross ((5) () 8,164 10,914
-------------------------------- -------- --------
TCE rate - Net ((6) () 4,963 8,596
-------------------------------- -------- --------
Average daily vessel operating
expenses ((7) () 4,807 5,205
-------------------------------- -------- --------
(1) Ownership days are the cumulative days in a period during
which each vessel is owned by the respective vessel owning
company.
(2) Available days are ownership days less the days that the
vessels are at scheduled off-hire for maintenance or vessel
repositioning.
(3) Operating days are the available days less all unforeseen
off-hires.
(4) Fleet utilisation is measured by dividing the vessels'
operating days by the vessels' available days.
(5) Time Charter Equivalent (TCE)-Gross is defined as vessels'
total revenues divided by the number of the available days for the
period.
(6) TCE-Net is defined as vessels' total revenues less voyage
expenses divided by the number of the available days for the
period.
(7) Average daily vessel operating expenses is defined as vessel
operating expenses divided by ownership days.
H1 2014 Financial Position / Capitalisation
As at 30 June 2015 debt amounted to US$ 95.3 million compared to
US$ 96.6 million as of 31 December 2014.
As of 30 June 2015, debt (debt, net of deferred financing fees)
to total capitalisation (debt and stockholders' equity) amounted to
75.2% compared to 68.8% as of 31 December 2014. Net debt (debt less
cash and cash equivalents) to total capitalisation amounted to
74.0% on 30 June 2015 compared to 67.1% on 31 December 2014.
Total cash, including restricted cash amounted to US$ 6.2
million as of 30 June 2015 and US$ 7.0 million as of 31 December
2014. Restricted cash as of 30 June 2015 amounted to US$ 3.7
million, increased from US$ 0.6 million reported on 31 December
2014 mainly due to the proceeds from the sale of M/V Hellenic
Horizon pledged in favour of the lender and will be used for the
payment of scheduled principal instalments and interest.
Dividend
In order to reinforce the Company's liquidity, the Directors of
the Company did not recommend payment of an interim dividend.
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
Panmure Gordon (UK) Limited
Nominated Adviser & Broker
Mark Taylor +44 (0) 207 886 2500
James Greenwood
Capital Link
Nicolas Bornozis +1 212 661 7566 (New York)
Maria Chercheletzi +44 (0) 20 3206 1320 (London)
E-mail: helleniccarriers@capitallink.com
Further Information - Notes to Editors
A copy of this announcement will be available on the Company's
website www.hellenic-carriers.com
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, comprising one
Panamax, two Supramax and two Kamsarmax vessels with an aggregate
carrying capacity of 340,055 dwt and a weighted average age of 9.9
years.
Hellenic Carriers is listed on the AIM of the London Stock
Exchange under ticker HCL.
INTERIM CONSOLIDATED INCOME STATEMENT
For the six months ended 30 June 2015
(Amounts expressed in thousands of U.S. Dollars, except share
and per share data)
30 June
------------------------
2015 2014
----------- -----------
Unaudited Unaudited
US$'000 US$'000
Revenue 6,749 10,390
----------- -----------
Expenses and other income
Voyage expenses (2,602) (2,102)
Voyage expenses - related
parties (67) (104)
Vessel operating expenses (4,759) (5,621)
Management fees - related
parties (990) (1.080)
Depreciation (4,184) (4,730)
Depreciation of dry-docking
costs (555) (677)
Loss on sale of vessels (4,040) -
General and administrative
expenses (298) (653)
Other operating income 23 1,186
Operating loss (10,723) (3,391)
Finance expense (1,852) (1,916)
Finance income 1 9
Foreign currency gain/
(loss), net 60 (14)
(1,791) (1,921)
----------- -----------
Loss for the period (12,514) (5,312)
=========== ===========
Loss per share (US$):
Basic and diluted LPS
for the period (0.27) (0.12)
Weighted average number
of shares 45,616,851 45,616,851
INTERIM CONSOLIDATED STATEMENT OF OTHER COMPREHENSIVE INCOME
For the six months ended 30 June 2015
(MORE TO FOLLOW) Dow Jones Newswires
September 30, 2015 02:01 ET (06:01 GMT)
Hellenic Carr. (LSE:HCL)
Gráfica de Acción Histórica
De Ene 2025 a Feb 2025
Hellenic Carr. (LSE:HCL)
Gráfica de Acción Histórica
De Feb 2024 a Feb 2025
