TIDMHCL
RNS Number : 8470Q
Hellenic Carriers Limited
02 March 2016
Hellenic Carriers Limited
Press Release 2 March 2016
PRELIMINARY RESULTS FOR THE YEAR ENDED 31 DECEMBER 2015
&
PROPOSED CANCELLATION OF ADMISSION OF THE COMPANY'S SHARES TO
TRADING ON AIM
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 reports
today its Preliminary Results for the year ended 31 December 2015
and the decision by the Board of Directors to propose to
Shareholders the cancellation of the Company's shares to trading on
AIM.
2015 HIGHLIGHTS
FINANCIAL
Þ Revenue: US$ 13.0 million (2014: US$ 20.6 million)
Þ EBITDA(1) (:) US$ 3.0 million negative (2014: US$ 1.0 million positive)
Þ Operating loss before book loss on sale/impairment of vessels:
US$ 12.6 million (2014: US$ 9.0 million)
Þ Net loss before book loss on sale/impairment of vessels: US$
16.3 million (2014: US$ 12.8 million)
Þ Book loss on sale of vessel: US$ 4.1 million (2014: US$ nil)
Þ Book loss on impairment of vessels: US$ 13.6 million (2014: US$ 4.2 million)
([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/
(expense)
OPERATIONAL
Þ Decrease of the operating fleet: operation of 5.2 vessels on
average compared to 5.9 vessels in 2014
Þ Time Charter Equivalent ("TCE")-Gross rate of US$ 7,756 (2014: US$ 10,687)
Þ Time Charter Equivalent ("TCE")-Net rate of US$ 5,117 (2014: US$ 8,130)
Þ Daily Operating expenses of US$ 4,767 (2014: US$ 5,231)
Market Commentary
During 2015 the performance of the dry bulk market further
deteriorated, with rates reaching 30 year lows. The BDI averaged at
728 points, its lowest average score since inception in 1986. The
average earnings for all categories of dry bulk ships barely
covered operating expenses and in most cases did not suffice for
finance costs. The main factors behind this severe deterioration
were the slowing growth in China, the shrinking trading volumes for
some of the major dry bulk commodities in conjunction with the
continuing supply of new ships.
From the beginning of 2016 the freight market has further
receded and for the first two months of the year the BDI has
averaged at around 350 points, 50% lower compared to the 2015
average. The dropping commodity prices have squeezed the freight
margins and at the same time the uncertainty surrounding the
emerging markets as well as the growth prospects of the developed
countries, have resulted in a distressed market. Currently, the
earnings achieved by dry bulk vessels no longer cover operating
expenses, leading operators to consider idling or laying up their
ships and perhaps scrapping their older units. The fact that
scrapping has increased considerably is a positive sign, but at the
same time the order book for 2016 remains very heavy. So, although
recycling and perhaps cancellations of orders may alleviate the
supply side, the dry bulk fleet is expected to grow further on a
net basis this year. Therefore, unless demand picks up
considerably, the prospects of the market will continue to be very
challenging.
Developments
For the year ended 31 December 2015, the Company operated
through its subsidiaries an average fleet of 5.2 vessels compared
to 5.9 vessels for the year ended 31 December 2014. Following the
sale of one of the vessels in March 2015, the operating fleet at 31
December 2015 included one Panamax, two Supramax and two Kamsarmax
vessels with an aggregate carrying capacity of 340,055 dwt and a
weighted average age of 10.1 years.
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.
Full year 2015 Results
Operating and Financial highlights
The following tables summarise the operating and financial
results for full year 2015.
Year ended 31
Selected Operating data December
2015 2014
---------- --------
Unaudited Audited
Average number of operating
vessels 5.2 5.9
Number of operating vessels
at year end 5.0 6.0
Total dwt at year end 340,055 384,864
Ownership days (1) 1,910 2,184
Available days (2) 1,682 1,927
Operating days (3) 1,574 1,851
Fleet utilisation (4) 93.6% 96.1%
Average daily results (in US$)
Time Charter Equivalent (TCE)
Gross rate (5) 7,756 10,687
Time Charter Equivalent (TCE)
Net rate (6) 5,117 8,130
Average daily vessel operating
expenses(7) 4,767 5,231
(1) Ownership days are the cumulative days in a period during
which each vessel is owned by the respective vessel owning
company.
(2) Available days are ownership days less the days that the
vessels are at scheduled off-hire for maintenance or vessel
repositioning.
(3) Operating days are the available days less all unforeseen
off-hires.
(4) Fleet utilisation is measured by dividing the vessels'
operating days by the vessels' available days.
(5) TCE-Gross is defined as vessels' total revenues divided by
the number of the available days for the period.
(6) TCE-Net is defined as vessels' total revenues less voyage
expenses divided by the number of the available days for the
period.
(7) Average daily vessel operating expenses is defined as vessel
operating expenses divided by ownership days.
Selected Income Statement Data
(Amounts expressed in thousands
of U.S. Dollars,
except share and per share Year ended 31
data) December
2015 2014
----------- -----------
Unaudited Audited
Revenue 13,046 20,595
EBITDA (1) (2,950) 1,030
Operating loss (30,299) (13,190)
Adding back impairment loss 13,627 4,185
Adding back book loss on sale 4,074 -
Operating loss before non-cash
impairment loss/ loss on sale
of vessel (12,598) (9,005)
Net Finance costs (3,672) (3,790)
Net loss before non-cash impairment
loss/ loss on sale of vessel (16,270) (12,795)
Loss for the year (33,971) (16,980)
Loss per share (US$):
Basic and diluted LPS for the
year (0.74) (0.37)
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/
(expense)
During 2015, the Company, through its subsidiaries, operated 5.2
vessels which earned on average net earnings (TCE-net) of US$ 5,117
per day compared to 5.9 vessels and average net earnings of US$
8,130 per day in 2014, a decrease of 37%.
For the year ended 31 December 2015, total revenues were US$
13.0 million (2014: US$ 20.6 million), a decrease of US$ 7.6
million from the previous year. The decrease in revenues is
attributed to the lower dry bulk freight market in conjunction with
the reduction in the number of vessels operated during the period.
The fleet utilisation during 2015 was 93.6% compared to 96.1% in
2014.
Voyage expenses decreased to US$ 4.3 million (2014: US$ 4.7
million). The decrease in voyage expenses is mainly attributable to
the decrease in the number of vessels operated during 2015 as
compared to 2014.
Vessel operating expenses decreased by US$ 2.3 million to a
total of US$ 9.1 million for the year ended 31 December 2015.
Average daily operating expenses for the year ended 31 December
2015 were US$ 4,767 (2014: US$ 5,231) demonstrating improvement of
operational efficiency.
The Company's general and administrative expenses for the year
ended 31 December 2015 decreased to US$ 0.5 million (2014: US$ 1.0
million).
Earnings before Tax, Interest, Depreciation and Amortisation
(EBITDA) was reported negative at US$ 3.0 million for the year
ended 31 December 2015 (2014: positive US$ 1.0 million).
Operating loss amounted to US$ 30.3 million for the year ended
31 December 2015 (2014: US$ 13.2 million). For the year ended 31
December 2015, the operating loss figure included a non-cash
impairment charge of US$ 13.6 million relating to two of the
vessels (2014: impairment charge of US$ 4.2 million relating to one
of the vessels) as well as a non-cash loss of US$ 4.1 million from
the sale of one of the vessels in March 2015 (2014: US$ nil).
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$ 3.7 million for the year ended
31 December 2015, compared to US$ 3.9 million for the same period
of 2014. The weighted average interest rate for the year ended 31
December 2015 was 3.61% increasing slightly from 3.56% reported in
2014.
March 02, 2016 11:23 ET (16:23 GMT)
---------- ---------
Non-current liabilities
Long-term debt 91,524 93,325
---------- ---------
91,524 93,325
---------- ---------
Current liabilities
Trade payables 1,686 1,713
Current portion of long-term
debt 3,330 3,259
Accrued liabilities and
other payables 1,309 1,397
Deferred revenue 58 110
6,383 6,479
---------- ---------
Total Liabilities 97,907 99,804
---------- ---------
TOTAL EQUITY AND LIABILITIES 107,833 143,701
========== =========
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the year ended 31 December 2015
(Amounts expressed in thousands of U.S. Dollars, except share
and per share data)
Par Share Capital Accumulated Total
Number value Issued share premium contributions deficit equity
of shares US$ capital US$'000 US$'000 US$'000 US$'000 US$'000
------------ -------- ----------------- ---------- ---------------- ------------ ----------
As at 1 January
2014 45,616,851 0.001 46 54,355 10,826 (4,350) 60,877
Loss for the
year - - - - - (16,980) (16,980)
Other
comprehensive
income - - - - - - -
------------ -------- ----------------- ---------- ---------------- ------------ ----------
Total
comprehensive
loss - - - - - (16,980) (16,980)
As at 31
December
2014 45,616,851 0.001 46 54,355 10,826 (21,330) 43,897
============ ======== ================= ========== ================ ============ ==========
Loss for the
year - - - - - (33,971) (33,971)
Other
comprehensive
income - - - - - - -
------------ -------- ----------------- ---------- ---------------- ------------ ----------
Total
comprehensive
loss - - - - - (33,971) (33,971)
As at 31
December
2015 45,616,851 0.001 46 54,355 10,826 (55,301) 9,926
============ ======== ================= ========== ================ ============ ==========
CONSOLIDATED STATEMENT OF CASH FLOWS
For the year ended 31 December 2015
(Amounts expressed in thousands of U.S. Dollars)
31 December
---------------------
2015 2014
---------- ---------
Unaudited Audited
---------- ---------
US$'000 US$'000
Operating activities
Loss for the year (33,971) (16,980)
Adjustments to reconcile loss to net
cash flows:
Depreciation 8,168 9,721
Depreciation of dry-docking costs 1,086 1,592
Impairment loss 13,627 4,185
Loss on sale of vessels 4,074 -
Finance expense 3,727 3,884
Finance income (3) (12)
---------- ---------
(3,292) 2,390
Decrease/ (Increase) in inventories 365 (312)
Decrease/ (Increase) in trade receivables,
claims receivable, prepaid expenses
and other assets 1,667 (1,032)
Decrease in due from related parties 1,321 227
Restricted cash - 3,400
(Decrease)/ Increase in trade payables,
accrued liabilities and other payables (280) 626
Decrease in deferred revenue (52) (158)
---------- ---------
Net cash flows (used in)/ provided by
operating activities (271) 5,141
---------- ---------
Investing activities
Acquisition/ improvement of vessels (85) (15,461)
Dry-docking costs - (2,188)
Net proceeds from sale of vessels 2,853 -
Restricted cash - 5,346
Interest received 3 13
---------- ---------
Net cash flows provided by/ (used in)
investing activities 2,771 (12,290)
---------- ---------
Financing activities
Proceeds from issue of long-term debt - 2,500
Repayment of long-term debt (1,810) (3,440)
Restricted cash (1,972) 148
Finance expenses paid (3,482) (3,847)
Net cash flows used in financing activities (7,264) (4,639)
---------- ---------
Net decrease in cash and cash equivalents (4,764) (11,788)
Cash and cash equivalents at 1 January 6,391 18,179
---------- ---------
Cash and cash equivalents at 31 December 1,627 6,391
========== =========
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR SSEFMEFMSEED
(END) Dow Jones Newswires
March 02, 2016 11:23 ET (16:23 GMT)
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