Grindrod Shipping Holdings Ltd. (NASDAQ: GRIN) (JSE: GSH)
(“Grindrod Shipping” or “Company” or “we” or “us” or “our”), a
global provider of maritime transportation services predominantly
in the drybulk sector, today announced its earnings results for the
three months and the nine months ended September 30, 2022.
Financial Highlights for the Three
Months Ended September 30, 2022
- Revenues of $107.2 million
- Gross profit of $38.5 million
- Profit for the period attributable to owners of the Company of
$22.2 million, or $1.17 per ordinary share
- Adjusted net income of $27.3 million, or $1.44 per
ordinary share(1)
- Adjusted EBITDA of $47.8 million(1)
- Handysize and supramax/ultramax TCE per day of $23,257 and
$25,645, respectively(1)
Financial Highlights for the Nine Months
Ended September 30, 2022
- Revenues of
$379.1 million
- Gross profit of
$143.8 million
- Profit for the period attributable
to owners of the Company of $107.9 million, or $5.72 per
ordinary share
- Adjusted net income of $110.4
million, or $5.85 per ordinary share(1)
- Adjusted EBITDA of
$171.9 million(1)
- Handysize and supramax/ultramax TCE
per day of $24,396 and $27,015, respectively(1)
- Period end cash and cash
equivalents of $140.8 million and restricted cash of $9.8
million
(1) Adjusted EBITDA, Adjusted net income and TCE
per day are non-GAAP financial measures. For the definitions of
these non-GAAP financial measures and the reconciliation of these
measures to the most directly comparable financial measure
calculated and presented in accordance with GAAP, please refer to
the definitions and reconciliations in “Non-GAAP Financial
Measures” at the end of this press release.
Operational Highlights for the Three
Months Ended September 30, 2022
- On July 25, 2022, we purchased the
2015-built supramax bulk carrier, IVS Pinehurst for an amount of
$18.0 million.
- On September 14, 2022, we exercised
the option to extend the firm charter-in period of the 2020-built
supramax bulk carrier IVS Pebble Beach for 12 months at
$12,950/day, starting from approximately October 15, 2022.
- On September 21, 2022, we exercised
the option to extend the firm charter-in period of the 2014-built
supramax bulk carrier IVS Naruo for 12 months at $13,000/day,
starting from approximately January 21, 2023.
Recent Developments
- On October 11, 2022, we exercised
the option to extend the firm charter-in period of the 2020-built
supramax bulk carrier IVS Atsugi for 12 months at $12,950/day,
starting from approximately December 23, 2022.
- On October 12, 2022, the Company
announced that we have entered into a transaction implementation
agreement among the Company, Taylor Maritime Investments Limited
(“TMI”) and Good Falkirk (MI) Limited, a wholly-owned subsidiary of
TMI (the “Offeror”), providing for a voluntary conditional cash
offer (the “Offer”) to be made by the Offeror for all of the issued
ordinary shares (the “Shares”) in the capital of the Company (other
than Shares held by the Offeror and Shares held in treasury) (the
“Offer Shares”).
- The Company does not intend to
declare any further dividends for 2022 prior to the consummation of
the Offer after the initial offer period. In connection with the
consummation of the Offer following the initial offer period, the
Company’s Board of Directors may be reconstituted such that all of
the directors (other than two current independent directors of the
Company) will be persons designated by TMI. After the consummation
of the Offer and immediately following the initial offer period,
all decisions with respect to whether to declare and pay any future
dividends (and, if so, the amount of any such dividend) will be
made by the reconstituted Company Board as it may determine in its
sole discretion. There is no guarantee that the Company Board will
declare or pay any dividends after the consummation of the Offer
and immediately following the initial offer period and, if it
determines to do so, the amount or timing of any such
dividends.
- As of November 10, 2022, we have contracted the following
TCE per day for the fourth quarter of 2022 (1):
- Handysize: approximately 959
operating days(2) at an average TCE per day of approximately
$15,688
- Supramax/ultramax: approximately
1,455 operating days(2) at an average TCE per day of approximately
$22,850
(1) TCE per day is a non-GAAP financial measure.
For the definition of this non-GAAP financial measure and the
reconciliation of this measure to the most directly comparable
financial measure calculated and presented in accordance with GAAP,
please refer to the definitions and reconciliations in “Non-GAAP
Financial Measures” at the end of this press release.
(2) Operating days: the number of available days
in the relevant period a vessel is controlled by us after
subtracting the aggregate number of days that the vessel is
off-hire due to a reason other than scheduled drydocking and
special surveys, including unforeseen circumstances. We use
operating days to measure the aggregate number of days in a
relevant period during which vessels are actually available to
generate revenue.
CEO Commentary
Stephen Griffiths, the Interim Chief Executive
Officer and Chief Financial Officer of Grindrod Shipping,
commented:
“Our results for the third quarter of 2022 were
quite strong overall, though lower sequentially relative to the
second quarter of 2022 as charter rates persistently declined over
the course of the quarter. For the third quarter of 2022, we
achieved $47.8 million of Adjusted EBITDA and $27.3 million of
Adjusted net income, or $1.44 per ordinary share from continuing
operations. Handysize and supramax/ultramax TCE per day were
$23,257 and $25,645, respectively, for the third quarter of 2022.
While supply fundamentals have remained intact with a low orderbook
persisting due to uncertainty surrounding new engine technology and
emissions controls, trade demand appears to have softened so far
this year. In the first half of the year, minor bulks were the only
major category of drybulk cargoes to remain positive from a cargo
growth perspective, but they too contracted in the third quarter.
Our vessels continued to outperform the larger drybulk vessel
classes during the quarter and year to date periods and have
delivered robust free cash flows for the Company, further
strengthening our balance sheet.”
Unaudited Results for the Three Months
Ended September 30, 2022 and 2021
Continuing
Operations
Revenue was $107.2 million for the three
months ended September 30, 2022 and $135.1 million for the
three months ended September 30, 2021. Vessel revenue was
$107.0 million for the three months ended September 30, 2022
and $135.0 million for the three months ended September 30,
2021. Revenue decreased due to weakening market conditions in the
drybulk business and a reduction in short-term operating days due
to the redelivery of the short-term vessels that were chartered-in
during a weaker market and were not extended due to reduced demand
for drybulk tonnage brought about by global recession, high
interest rates and continued shutdowns in China.
Our handysize total revenue and
supramax/ultramax total revenue was $43.6 million and
$63.6 million, respectively, for the three months ended
September 30, 2022, and $46.6 million and $87.3 million,
respectively, for the three months ended September 30, 2021.
Handysize vessel revenue and supramax/ultramax vessel revenue was
$43.5 million and $63.5 million, respectively, for the
three months ended September 30, 2022, and $46.5 million and
$87.3 million, respectively, for the three months ended
September 30, 2021. The results for the three months ended
September 30, 2022 were negatively impacted by lower TCE per day
rates achieved in our handysize and supramax/ultramax drybulk
carrier segments, reflecting the weaker spot markets in these
segments which was additionally impacted by a reduction in
short-term operating days.
Handysize TCE per day was $23,257 per day for
the three months ended September 30, 2022 and $25,919 per day for
the three months ended September 30, 2021. Supramax/ultramax TCE
per day was $25,645 per day for the three months ended September
30, 2022 and $29,934 per day for the three months ended September
30, 2021.
Cost of sales was $68.7 million for the
three months ended September 30, 2022 and $73.2 million for
the three months ended September 30, 2021. The decrease was
primarily due to the decrease in short-term operating days for
supramax/ultramax resulting in decreased voyage expenses and
short-term charter hire expenses.
Our handysize segment and supramax/ultramax
segment cost of sales was $25.9 million and
$43.7 million, respectively, for the three months ended
September 30, 2022 and $21.4 million and $52.1 million,
respectively, for the three months ended September 30, 2021.
Handysize voyage expenses and supramax/ultramax
voyage expenses were $7.6 million and $15.8 million,
respectively, for the three months ended September 30, 2022 and
$6.6 million and $19.7 million, respectively, for the
three months ended September 30, 2021. Handysize charter hire and
supramax/ultramax charter hire were $5.7 million and
$11.9 million, respectively, for the three months ended
September 30, 2022 and $3.5 million and $17.5 million,
respectively, for the three months ended September 30, 2021.
Handysize vessel operating costs and supramax/ultramax vessel
operating costs were $8.1 million and $4.6 million,
respectively, for the three months ended September 30, 2022, and
$7.9 million and $4.0 million, respectively, for the
three months ended September 30, 2021. Handysize vessel operating
costs per day were $5,883 per day for the three months ended
September 30, 2022 and $5,707 per day for the three months ended
September 30, 2021. Vessel operating costs per day were higher in
the handysize drybulk carrier segment for the three months ended
September 30, 2022 in comparison to the three months ended
September 30, 2021 due to crew repatriation that was timed
differently to the previous year. Supramax/ultramax vessel
operating costs per day were $5,105 per day for the three months
ended September 30, 2022 and $5,306 per day for the three months
ended September 30, 2021. Vessel operating costs per day
decreased for the three months ended September 30, 2022 in
comparison to the three months ended September 30, 2021 due to crew
repatriation that was timed differently to the previous year.
The long-term charter-in cost per day for our
supramax/ultramax fleet was $15,039 per day during the three months
ended September 30, 2022 and $12,858 per day for the three months
ended September 30, 2021. The increase is due to the extension of a
charter agreement at a higher rate in May 2022. During the three
months ended September 30, 2022, out of 1,861 operating days in the
supramax/ultramax segment, 74.5% were fulfilled with
owned/long-term chartered-in vessels and the remaining 25.5% with
short-term chartered-in vessels compared to 2,258 operating days in
the supramax/ultramax segment, 61.6% were fulfilled with
owned/long-term chartered-in vessels and the remaining 38.4% with
short-term chartered-in vessels for the three months ended
September 30, 2021.
Gross profit was $38.5 million for the
three months ended September 30, 2022 and $62.0 million for
the three months ended September 30, 2021.
Other operating income was $0.1 million for
the three months ended September 30, 2022 and $0.3 million for
the three months ended September 30, 2021.
Administrative expense was $12.5 million
for the three months ended September 30, 2022 and
$10.6 million for the three months ended September 30, 2021.
The increase was due to the fees associated with the offer to
shareholders to purchase their shares during the current year,
higher insurance costs and higher staff incentive costs.
Interest income was $0.6 million for the
three months ended September 30, 2022 and $0.0 million for the
three months ended September 30, 2021.
Interest expense was $4.4 million for the
three months ended September 30, 2022 and $2.4 million for the
three months ended September 30, 2021.
Income tax expense was $0.1 million for the
three months ended September 30, 2022 and $0.0 million for the
three months ended September 30, 2021.
Profit for the three months ended September 30,
2022 was $22.2 million compared to $49.3 million for the
three months ended September 30, 2021.
Profit attributable to owners of the Company for
the three months ended September 30, 2022 was $22.2 million
compared to $44.2 million for the three months ended September
30, 2021.
Continuing and
Discontinued Operation
Profit for the three months ended September 30,
2022 was $22.2 million compared to $49.1 million for the three
months ended September 30, 2021.
Profit attributable to owners of the Company for
the three months ended September 30, 2022 was $22.2 million
compared to $44.0 million for the three months ended September 30,
2021.
Unaudited Results for the nine months
ended September 30, 2022 and 2021
Continuing
Operations
Revenue was $379.1 million for the nine
months ended September 30, 2022 and $313.4 million for the
nine months ended September 30, 2021. Vessel revenue was
$348.7 million for the nine months ended September 30, 2022
and $312.9 million for the nine months ended September 30,
2021. Revenue increased due to improved market conditions in the
drybulk business mainly in the first half of the year which was
slightly offset by a reduction in short-term supramax/ultramax
operating days and the sale of a medium range tanker in the first
half of 2022 (included in the Other segment under a bareboat
charter) compared to no ship sales in continuing operations for the
same period in 2021.
Our handysize total revenue and
supramax/ultramax total revenue was $132.5 million and
$214.6 million, respectively, for the nine months ended
September 30, 2022, and $107.6 million and
$201.7 million, respectively, for the nine months ended
September 30, 2021. Handysize vessel revenue and supramax/ultramax
vessel revenue was $132.1 million and $214.5 million,
respectively, for the nine months ended September 30, 2022, and
$107.2 million and $201.7 million, respectively, for the
nine months ended September 30, 2021. The results for the nine
months ended September 30, 2022 were positively impacted by higher
TCE per day rates achieved in our handysize and supramax/ultramax
drybulk carrier segments, reflecting the stronger spot markets in
these segments mainly in the first half of the year which was
slightly offset by a reduction in supramax/ultramax short-term
operating days.
Handysize TCE per day was $24,396 per day for
the nine months ended September 30, 2022 and $18,847 per day for
the nine months ended September 30, 2021. Supramax/ultramax TCE per
day was $27,015 per day for the nine months ended September 30,
2022 and $21,514 per day for the nine months ended September 30,
2021.
Cost of sales was $235.3 million for the
nine months ended September 30, 2022 and $203.2 million for
the nine months ended September 30, 2021. The increase was
primarily due to the cost of a ship sold in the first half of 2022
compared to no ship sales in continuing operations for the same
period in 2021 and increased costs for short-term charters on
handysize vessels which was slightly offset by a decrease in
short-term operating days for supramax/ultramax vessels.
In the drybulk business, our handysize segment
and supramax/ultramax segment cost of sales was $71.0 million
and $135.8 million, respectively, for the nine months ended
September 30, 2022 and $63.0 million and $141.0 million,
respectively, for the nine months ended September 30, 2021.
Handysize voyage expenses and supramax/ultramax
voyage expenses were $22.5 million and $47.3 million,
respectively, for the nine months ended September 30, 2022 and
$20.7 million and $48.4 million, respectively, for the
nine months ended September 30, 2021. Handysize vessel operating
costs and supramax/ultramax vessel operating costs were
$22.9 million and $13.3 million, respectively, for the
nine months ended September 30, 2022, and $23.1 million and
$11.5 million, respectively, for the nine months ended
September 30, 2021. Handysize vessel operating costs per day
remained relatively flat at $5,603 per day for the nine months
ended September 30, 2022 and $5,638 per day for the nine months
ended September 30, 2021. Supramax/ultramax vessel operating costs
per day remained relatively flat at $5,255 per day for the nine
months ended September 30, 2022 and $5,244 per day for the nine
months ended September 30, 2021.
The long-term charter-in costs per day for our
supramax/ultramax fleet was $14,022 per day during the nine months
ended September 30, 2022 and $12,690 per day for the nine months
ended September 30, 2021. The increase is due to the extension of a
charter agreement in May 2022 at a higher rate. During the nine
months ended September 30, 2022, out of 6,189 operating days in the
supramax/ultramax segment, 68.6% were fulfilled with
owned/long-term chartered-in vessels and the remaining 31.4% with
short-term chartered-in vessels compared to 7,122 operating days in
the supramax/ultramax segment, 58.8% were fulfilled with
owned/long-term chartered-in vessels and the remaining 41.2% with
short-term chartered-in vessels for the nine months ended September
30, 2021.
Gross profit was $143.8 million for the
nine months ended September 30, 2022 and $110.2 million for
the nine months ended September 30, 2021.
Other operating income was $3.8 million for
the nine months ended September 30, 2022 and $3.7 million for
the nine months ended September 30, 2021.
Administrative expense was $28.4 million
for the nine months ended September 30, 2022 and $24.8 million
for the nine months ended September 30, 2021. Administrative
expense increased in the nine months ended September 30, 2022 as
compared to the nine months ended September 30, 2021 due to the
fees associated with the offer to shareholders to purchase their
shares during the current year, higher insurance costs and higher
staff incentive costs. Interest income was $0.8 million
for the nine months ended September 30, 2022 and $0.1 million
for the nine months ended September 30, 2021.
Interest expense was $11.8 million for the
nine months ended September 30, 2022 and $9.5 million for the
nine months ended September 30, 2021.
Income tax (expense) benefit was an expense of
$0.4 million for the nine months ended September 30, 2022 and
a benefit of $0.1 million for the nine months ended September
30, 2021.
Profit for the nine months ended September 30,
2022 was $107.9 million and $79.8 million for the nine
months ended September 30, 2021.
Profit attributable to owners of the Company for
the nine months ended September 30, 2022 was $107.9 million
and $69.2 million for the nine months ended September 30,
2021.
Continuing and
Discontinued Operation
Profit for the nine months ended September 30,
2022 was $107.9 million compared to a profit of $76.7 million for
the nine months ended September 30, 2021.
Profit attributable to owners of the Company for
nine months ended September 30, 2022 was $107.9 million compared to
$66.1 million for the nine months ended September 30, 2021.
Net cash flows generated from operating
activities was $168.3 million for the nine months ended
September 30, 2022 and $136.6 million for the nine months
ended September 30, 2021. Net cash generated from (used in)
investing activities was an inflow of $0.1 million for the
nine months ended September 30, 2022 and an outflow of
$46.3 million for the nine months ended September 30, 2021.
Net cash flows used in financing activities was $130.5 million
for the nine months ended September 30, 2022 and $51.8 million
for the nine months ended September 30, 2021.
As of September 30, 2022, we had cash and
equivalents of $140.8 million and restricted cash of
$9.8 million.
Conference Call details
The Company will not be holding a conference
call and webcast to discuss the results due to the currently open
Tender Offer from Taylor Maritime Investments Limited.
About Grindrod Shipping
Grindrod Shipping owns and operates a
diversified fleet of owned, long-term and short-term chartered-in
drybulk vessels predominantly in the handysize and
supramax/ultramax segments. The drybulk business, which operates
under the brand “Island View Shipping” (“IVS”) includes a core
fleet of 31 vessels consisting of 15 handysize drybulk carriers and
16 supramax/ultramax drybulk carriers. The Company is based in
Singapore, with offices in London, Durban, Tokyo and Rotterdam.
Grindrod Shipping is listed on NASDAQ under the ticker “GRIN” and
on the JSE under the ticker “GSH”.
Fleet Table
The following table sets forth certain summary
information regarding our fleet as of the date of this press
release.
Drybulk Carriers — Owned Fleet (25
Vessels)
|
Vessel Name |
|
Built |
|
Country of Build |
|
DWT |
|
Type of Employment |
|
Handysize – Eco |
|
|
|
|
|
|
|
|
| IVS Tembe |
|
2016 |
|
Japan |
|
37,740 |
|
IVS Commercial(1) |
| IVS Sunbird |
|
2015 |
|
Japan |
|
33,400 |
|
IVS Handysize Pool |
| IVS Thanda |
|
2015 |
|
Japan |
|
37,720 |
|
IVS Commercial(1) |
| IVS Kestrel |
|
2014 |
|
Japan |
|
32,770 |
|
IVS Handysize Pool |
| IVS Phinda |
|
2014 |
|
Japan |
|
37,720 |
|
IVS Commercial(1) |
| IVS Sparrowhawk |
|
2014 |
|
Japan |
|
33,420 |
|
IVS Handysize Pool |
|
Handysize |
|
|
|
|
|
|
|
|
| IVS Merlion |
|
2013 |
|
China |
|
32,070 |
|
IVS Handysize Pool |
| IVS Raffles |
|
2013 |
|
China |
|
32,050 |
|
IVS Handysize Pool |
| IVS Ibis |
|
2012 |
|
Japan |
|
28,240 |
|
IVS Handysize Pool |
| IVS Kinglet(2) |
|
2011 |
|
Japan |
|
33,130 |
|
IVS Handysize Pool |
| IVS Magpie(2) |
|
2011 |
|
Japan |
|
28,240 |
|
IVS Handysize Pool |
| IVS Orchard |
|
2011 |
|
China |
|
32,530 |
|
IVS Handysize Pool |
| IVS Knot(2) |
|
2010 |
|
Japan |
|
33,140 |
|
IVS Handysize Pool |
| IVS Sentosa |
|
2010 |
|
China |
|
32,700 |
|
IVS Handysize Pool |
| IVS Kingbird |
|
2007 |
|
Japan |
|
32,560 |
|
IVS Handysize Pool |
| Supramax/Ultramax –
Eco |
|
|
|
|
|
|
|
|
| IVS Prestwick |
|
2019 |
|
Japan |
|
61,300 |
|
IVS Supramax Pool |
| IVS Okudogo |
|
2019 |
|
Japan |
|
61,330 |
|
IVS Supramax Pool |
| IVS Phoenix(2) |
|
2019 |
|
Japan |
|
61,470 |
|
IVS Supramax Pool |
| IVS Swinley Forest |
|
2017 |
|
Japan |
|
60,490 |
|
IVS Supramax Pool |
| IVS Gleneagles |
|
2016 |
|
Japan |
|
58,070 |
|
IVS Supramax Pool |
| IVS North Berwick |
|
2016 |
|
Japan |
|
60,480 |
|
IVS Supramax Pool |
| IVS Bosch Hoek |
|
2015 |
|
Japan |
|
60,270 |
|
IVS Supramax Pool |
| IVS Hirono |
|
2015 |
|
Japan |
|
60,280 |
|
IVS Supramax Pool |
| IVS Wentworth |
|
2015 |
|
Japan |
|
58,090 |
|
IVS Supramax Pool |
| IVS Pinehurst(3) |
|
2015 |
|
Philippines(4) |
|
57,810 |
|
IVS Supramax Pool |
Drybulk Carriers — Long-Term Charter-In
Fleet (6 Vessels)
|
Vessel Name |
|
Built |
|
Country of Build |
|
DWT |
|
|
Daily Charter -in Rate(5)
on Sep 30, 2022 |
|
Charter-in Period (6) |
|
|
Purchase Option Price (Millions) |
|
Type of Employment |
|
Supramax/Ultramax – Eco |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| IVS Atsugi(7) |
|
2020 |
|
Japan |
|
62,660 |
|
$ |
12,200 |
|
2023-24 |
|
$ |
25.2 |
|
IVS Supramax Pool |
| IVS Pebble Beach(8) |
|
2020 |
|
Japan |
|
62,660 |
|
$ |
12,200 |
|
2023-24 |
|
$ |
25.2 |
|
IVS Supramax Pool |
| IVS Hayakita(9) |
|
2016 |
|
Japan |
|
60,400 |
|
$ |
13,500 |
|
2023-26 |
|
$ |
~20.8 |
|
IVS Supramax Pool |
| IVS Windsor(10) |
|
2016 |
|
Japan |
|
60,280 |
|
$ |
13,385 |
|
2023-26 |
|
$ |
- |
|
IVS Supramax Pool |
| IVS Crimson Creek(11) |
|
2014 |
|
Japan |
|
57,950 |
|
$ |
26,276 |
|
2023 |
|
$ |
- |
|
IVS Supramax Pool |
| IVS Naruo(12) |
|
2014 |
|
Japan |
|
60,030 |
|
$ |
12,750 |
|
2023-24 |
|
$ |
~12.4 |
|
IVS Supramax Pool |
|
|
|
|
(1) |
Commercially managed by Grindrod Shipping alongside the IVS
Handysize Pool. |
|
|
|
|
(2) |
IVS Knot, IVS Kinglet, IVS Magpie and IVS Phoenix have each
undergone separate financing arrangements in which we sold these
vessels but retained the right to control the use of these vessels
for a period up to 2030, 2031, 2031 and 2036, respectively, and we
have an option to acquire IVS Knot, IVS Kinglet and IVS Magpie
commencing in 2021 and IVS Phoenix in 2023. We regard the vessels
as owned since we have retained the right to control the use of the
vessels. |
|
|
|
|
(3) |
We purchased the IVS Pinehurst for $18.0 million and took delivery
on July 25, 2022. |
|
|
|
|
(4) |
Constructed at Tsuneishi Cebu Shipyard, a subsidiary of Tsuneishi
Shipbuilding of Japan. |
|
|
|
|
(5) |
Charter-in rate: The basic payment to the charterer for the use of
the vessel under time charter. The amount is usually for a fixed
period of time at rates that are generally fixed, but may contain a
variable component based on inflation, interest rates, or current
shipping market rates. The rate does not include any additional
costs that are specified in the contract such as brokerage costs
and victualing costs. |
|
|
|
|
(6) |
Expiration date range represents the earliest and latest
re-delivery periods due to extension options. |
|
|
|
|
(7) |
Chartered-in until Q4 2023 with one one-year option to extend, at
charter-in rates of $13,700 per day. The purchase option is
exercisable beginning in Q4 2022 and any time thereafter to expiry
date, subject to contract terms and conditions. The purchase option
price reduces with a linear depreciation of $1.0 million per year
or prorate. |
|
|
|
|
(8) |
Chartered-in until Q3 2023 with one one-year option to extend, at
charter-in rates of $13,700 per day. The purchase option is
exercisable beginning in Q3 2022 and any time thereafter to expiry
date, subject to contract terms and conditions. The purchase option
price reduces with a linear depreciation of $1.0 million per year
or prorate. |
|
|
|
|
(9) |
Chartered-in until Q3 2023 with two one-year options and one
nine-month option to extend, at charter-in rates of $14,000 per day
for the first extension year, $14,500 per day for the second
extension year, and $14,800 per day for the following nine-month
extension period. The purchase option is exercisable next in Q4
2022 subject to contract terms and conditions and includes an
estimated Japanese Yen denominated component but excludes estimated
50/50 profit sharing with vessel owner. The Japanese Yen component
has been converted at a rate of 145 Yen to $1. |
|
|
|
|
(10) |
Chartered-in until Q3 2023 with two one-year options and one
nine-month option to extend, at charter-in rates of $13,885 per day
for the first extension year, $14,385 per day for the second
extension year, and $14,885 per day for the following nine-month
extension period. |
|
|
|
|
(11) |
Chartered-in for a period of 11 to 13 months at a charter-in rate
of $26,276 per day commencing May 1, 2022. |
|
|
|
|
(12) |
Chartered-in until Q4 2023 with one one-year option to extend at
$13,000 per day. The purchase option is exercisable at any time
prior to expiry date, subject to contract terms and conditions. The
option includes an estimated Japanese Yen denominated component
which has been converted at a rate of 145 Yen to $1. |
Unaudited Segment
Information
| |
|
Three months ended September 30, |
|
|
Nine months ended September 30, |
|
(In thousands of U.S. dollars) |
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
Drybulk Carriers Business |
|
|
|
|
|
|
|
|
|
|
|
| Handysize
Segment |
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
$ |
43,635 |
|
|
$ |
46,551 |
|
|
$ |
132,450 |
|
|
$ |
107,617 |
|
| Cost of sales |
|
(25,873 |
) |
|
|
(21,403 |
) |
|
|
(71,033 |
) |
|
|
(62,989 |
) |
| Gross Profit |
|
17,762 |
|
|
|
25,148 |
|
|
|
61,417 |
|
|
|
44,628 |
|
| Supramax/Ultramax
Segment |
|
|
|
|
|
|
|
|
|
|
|
| Revenue |
$ |
63,582 |
|
|
$ |
87,253 |
|
|
$ |
214,572 |
|
|
$ |
201,720 |
|
| Cost of sales |
|
(43,659 |
) |
|
|
(52,108 |
) |
|
|
(135,796 |
) |
|
|
(141,049 |
) |
| Gross Profit |
|
19,923 |
|
|
|
35,145 |
|
|
|
78,776 |
|
|
|
60,671 |
|
Selected Historical and Statistical Data
of Our Operating FleetSet forth below are selected
historical and statistical data of our operating fleet for the
three months ended September 30, 2022 and 2021 and the nine months
ended September 30, 2022 and 2021 that we believe may be useful in
better understanding our operating fleet’s financial position and
results of operations. This table contains certain information
regarding TCE per day, vessel operating costs per day and long-term
charter-in costs per day which are non-GAAP measures. For a
discussion of certain of these measures, see “Non-GAAP Financial
Measures” at the end of this press release.
| |
|
Three months ended September 30, |
|
|
Nine months ended September 30, |
|
(In thousands of U.S. dollars) |
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
Drybulk Carriers Business |
|
|
|
|
|
|
|
|
|
|
|
| Handysize
Segment |
|
|
|
|
|
|
|
|
|
|
|
|
Calendar days(1) |
|
1,648 |
|
|
|
1,631 |
|
|
|
4,688 |
|
|
|
4,789 |
|
| Available days(2) |
|
1,586 |
|
|
|
1,572 |
|
|
|
4,599 |
|
|
|
4,674 |
|
| Operating days(3) |
|
1,541 |
|
|
|
1,537 |
|
|
|
4,493 |
|
|
|
4,589 |
|
|
Owned fleet operating days(4) |
|
1,273 |
|
|
|
1,287 |
|
|
|
3,900 |
|
|
|
3,895 |
|
|
Long-term charter-in days(5) |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
Short-term charter-in days(6) |
|
268 |
|
|
|
250 |
|
|
|
593 |
|
|
|
694 |
|
| Fleet utilization(7) |
|
97.2 |
% |
|
|
97.8 |
% |
|
|
97.7 |
% |
|
|
98.2 |
% |
| TCE per day(8) |
$ |
23,257 |
|
|
$ |
25,919 |
|
|
$ |
24,396 |
|
|
$ |
18,847 |
|
| Vessel operating costs per
day(9) |
$ |
5,883 |
|
|
$ |
5,707 |
|
|
$ |
5,603 |
|
|
$ |
5,638 |
|
| Long-term charter-in costs per
day(10) |
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
| Supramax/Ultramax
Segment |
|
|
|
|
|
|
|
|
|
|
|
| Calendar days(1) |
|
1,940 |
|
|
|
2,339 |
|
|
|
6,305 |
|
|
|
7,302 |
|
| Available days(2) |
|
1,891 |
|
|
|
2,318 |
|
|
|
6,256 |
|
|
|
7,232 |
|
| Operating days(3) |
|
1,861 |
|
|
|
2,258 |
|
|
|
6,189 |
|
|
|
7,122 |
|
|
Owned fleet operating days(4) |
|
816 |
|
|
|
736 |
|
|
|
2,442 |
|
|
|
2,140 |
|
|
Long-term charter-in days(5) |
|
571 |
|
|
|
655 |
|
|
|
1,804 |
|
|
|
2,048 |
|
|
Short-term charter-in days(6) |
|
474 |
|
|
|
867 |
|
|
|
1,943 |
|
|
|
2,934 |
|
| Fleet utilization(7) |
|
98.4 |
% |
|
|
97.4 |
% |
|
|
98.9 |
% |
|
|
98.5 |
% |
| TCE per day(8) |
$ |
25,645 |
|
|
$ |
29,934 |
|
|
$ |
27,015 |
|
|
$ |
21,514 |
|
| Vessel operating costs per
day(9) |
$ |
5,105 |
|
|
$ |
5,306 |
|
|
$ |
5,255 |
|
|
$ |
5,244 |
|
| Long-term charter-in costs per
day(10) |
$ |
15,039 |
|
|
$ |
12,858 |
|
|
$ |
14,022 |
|
|
$ |
12,690 |
|
|
|
(1) |
Calendar days: total calendar days the vessels were in our
possession for the relevant period. |
|
|
(2) |
Available days: total number of calendar days a vessel is in our
possession for the relevant period after subtracting off-hire days
for scheduled drydocking and special surveys. We use available days
to measure the number of days in a relevant period during which
vessels should be available for generating revenue. |
|
|
(3) |
Operating days: the number of available days in the relevant period
a vessel is controlled by us after subtracting the aggregate number
of days that the vessel is off-hire due to a reason other than
scheduled drydocking and special surveys, including unforeseen
circumstances. We use operating days to measure the aggregate
number of days in a relevant period during which vessels are
actually available to generate revenue. |
|
|
(4) |
Owned fleet operating days: the number of operating days in which
our owned fleet is operating for the relevant period. |
|
|
(5) |
Long-term charter-in days: the number of operating days in which
our long-term charter-in fleet is operating for the relevant
period. We regard chartered-in vessels as long-term charters if the
period of the charter we initially commit to is 12 months or more.
Once we have included such chartered-in vessels in our fleet, we
will continue to regard them as part of our fleet until the end of
their chartered-in period, including any period that the charter
has been extended under an option, even if at a given time the
remaining period of their charter may be less than 12 months. |
|
|
(6) |
Short-term charter-in days: the number of operating days for which
we have chartered-in third party vessels for durations of less than
one year for the relevant period. |
|
|
(7) |
Fleet utilization: the percentage of time that vessels are
available for generating revenue, determined by dividing the number
of operating days during a relevant period by the number of
available days during that period. We use fleet utilization to
measure a company’s efficiency in technically managing its
vessels. |
|
|
(8) |
TCE per day: vessel revenue less voyage expenses during a relevant
period divided by the number of operating days during the period.
The number of operating days used to calculate TCE revenue per day
includes the proportionate share of our joint ventures’ operating
days and includes charter-in days. Please see “Non-GAAP Financial
Measures” above for a discussion of TCE revenue and a
reconciliation of TCE revenue to revenue. |
|
|
(9) |
Vessel operating costs per day: vessel operating costs per day
represents vessel operating costs divided by the number of calendar
days for owned vessels. The vessel operating costs and the number
of calendar days used to calculate vessel operating costs per day
includes the proportionate share of our joint ventures’ vessel
operating costs and calendar days and excludes charter-in costs and
charter-in days. Please see “Non-GAAP Financial Measures” above for
a discussion of vessel operating costs per day. |
|
|
(10) |
Long-term charter-in costs per day: charter costs associated with
long-term chartered-in vessels divided by long-term charter-in days
for the relevant period. Please see “Non-GAAP Financial Measures”
above for a discussion of long-term charter-in costs and its
reconciliation to adjusted charter hire costs. That discussion also
shows an analysis of adjusted charter hire costs split between
long-term charter-in costs and short-term charter-in costs. |
|
|
|
|
|
|
|
The average long-term charter-in costs per day for the
supramax/ultramax fleet for the fourth quarter of 2022 is expected
to be approximately $15,209/day. |
Unaudited Interim Condensed Consolidated Statement of
Financial Position
| |
30 September 2022 |
|
31 December 2021 |
| |
US$’000 |
|
US$’000 |
| ASSETS |
|
|
|
| Current
assets |
|
|
|
|
Cash and bank balances |
146,316 |
|
|
107,118 |
|
| Trade receivables |
8,415 |
|
|
8,973 |
|
| Contract assets |
1,854 |
|
|
3,686 |
|
| Other receivables and
prepayments |
26,685 |
|
|
22,424 |
|
| Loans to joint ventures |
- |
|
|
10 |
|
| Derivative financial
instruments |
2,355 |
|
|
5,370 |
|
| Inventories |
18,085 |
|
|
13,909 |
|
| Total current assets |
203,710 |
|
|
161,490 |
|
| |
|
|
|
| Non-current
assets |
|
|
|
| Restricted cash |
4,308 |
|
|
6,649 |
|
| Ships, property, plant and
equipment |
413,314 |
|
|
437,479 |
|
| Right-of-use assets |
22,901 |
|
|
32,467 |
|
| Interest in joint
ventures |
10 |
|
|
13 |
|
| Derivative financial
instruments |
- |
|
|
611 |
|
| Intangible assets |
199 |
|
|
227 |
|
| Other receivables and
prepayments |
2,214 |
|
|
380 |
|
| Other investments |
3,292 |
|
|
3,730 |
|
| Deferred tax assets |
1,703 |
|
|
2,123 |
|
| Total non-current assets |
447,941 |
|
|
483,679 |
|
| |
|
|
|
| Total
assets |
651,651 |
|
|
645,169 |
|
| |
|
|
|
| LIABILITIES AND
EQUITY |
|
|
|
| Current
liabilities |
|
|
|
| Trade and other payables |
27,984 |
|
|
33,874 |
|
| Contract liabilities |
5,805 |
|
|
8,441 |
|
| Due to joint ventures |
47 |
|
|
- |
|
| Lease liabilities |
21,803 |
|
|
27,375 |
|
| Bank loans and other
borrowings |
33,928 |
|
|
28,020 |
|
| Retirement benefit
obligation |
110 |
|
|
124 |
|
| Derivative financial
instruments |
238 |
|
|
704 |
|
| Provisions |
123 |
|
|
1,019 |
|
| Income tax payable |
582 |
|
|
786 |
|
| Total current liabilities |
90,620 |
|
|
100,343 |
|
| |
|
|
|
| Non-current
liabilities |
|
|
|
| Trade and other payables |
131 |
|
|
160 |
|
| Lease liabilities |
76 |
|
|
5,896 |
|
| Bank loans and other
borrowings |
170,065 |
|
|
217,646 |
|
| Retirement benefit
obligation |
1,240 |
|
|
1,489 |
|
| Total non-current
liabilities |
171,512 |
|
|
225,191 |
|
| |
|
|
|
| Capital and
reserves |
|
|
|
| Share capital |
320,683 |
|
|
320,683 |
|
| Other equity and reserves |
(21,525 |
) |
|
(24,068 |
) |
| Accumulated profit |
90,361 |
|
|
23,020 |
|
| Total equity |
389,519 |
|
|
319,635 |
|
| |
|
|
|
| Total equity and
liabilities |
651,651 |
|
|
645,169 |
|
Unaudited Interim Condensed Consolidated
Statement of Profit or Loss
| |
|
Three months ended September 30, |
|
|
Nine months ended September 30, |
|
(In thousands of U.S. dollars, other than per share
data) |
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
Continuing Operations |
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
$ |
107,217 |
|
|
$ |
135,130 |
|
|
$ |
379,085 |
|
|
$ |
313,385 |
|
| Cost of
sales |
|
|
|
|
|
|
|
|
|
|
|
| Voyage expenses |
|
(23,441 |
) |
|
|
(26,284 |
) |
|
|
(69,830 |
) |
|
|
(69,367 |
) |
| Vessel operating costs |
|
(11,920 |
) |
|
|
(11,143 |
) |
|
|
(34,022 |
) |
|
|
(32,468 |
) |
| Charter hire costs |
|
(17,616 |
) |
|
|
(20,996 |
) |
|
|
(52,149 |
) |
|
|
(54,136 |
) |
| Depreciation of ships,
drydocking and plant and equipment– owned assets |
|
(7,256 |
) |
|
|
(6,553 |
) |
|
|
(22,730 |
) |
|
|
(19,149 |
) |
| Depreciation of ships and ship
equipment – right-of-use assets |
|
(9,044 |
) |
|
|
(8,863 |
) |
|
|
(26,571 |
) |
|
|
(25,909 |
) |
| Other expenses |
|
515 |
|
|
|
688 |
|
|
|
(106 |
) |
|
|
(2,176 |
) |
| Cost of ship sale |
|
28 |
|
|
|
- |
|
|
|
(29,897 |
) |
|
|
- |
|
| Gross
profit |
|
38,483 |
|
|
|
61,979 |
|
|
|
143,780 |
|
|
|
110,180 |
|
| Other operating income |
|
65 |
|
|
|
319 |
|
|
|
3,848 |
|
|
|
3,721 |
|
| Administrative expense |
|
(12,460 |
) |
|
|
(10,583 |
) |
|
|
(28,350 |
) |
|
|
(24,752 |
) |
| Share of losses of joint
ventures |
|
(4 |
) |
|
|
(1 |
) |
|
|
(3 |
) |
|
|
(29 |
) |
| Interest income |
|
571 |
|
|
|
48 |
|
|
|
840 |
|
|
|
123 |
|
| Interest expense |
|
(4,416 |
) |
|
|
(2,413 |
) |
|
|
(11,790 |
) |
|
|
(9,536 |
) |
| Profit before
taxation |
|
22,239 |
|
|
|
49,349 |
|
|
|
108,325 |
|
|
|
79,707 |
|
| Income tax (expense)
benefit |
|
(85 |
) |
|
|
(19 |
) |
|
|
(376 |
) |
|
|
59 |
|
| Profit for the period
from continuing operations |
|
22,154 |
|
|
|
49,330 |
|
|
|
107,949 |
|
|
|
79,766 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
| Discontinued
operation |
|
|
|
|
|
|
|
|
|
|
|
| Loss for the period from
discontinued operation |
|
- |
|
|
|
(235 |
) |
|
|
- |
|
|
|
(3,084 |
) |
| Profit for the
period |
|
22,154 |
|
|
|
49,095 |
|
|
|
107,949 |
|
|
|
76,682 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
| Profit for the period
attributable to: |
|
|
|
|
|
|
|
|
|
|
|
| Owners of the Company |
|
22,154 |
|
|
|
43,996 |
|
|
|
107,949 |
|
|
|
66,125 |
|
|
Continuing operations |
|
22,154 |
|
|
|
44,231 |
|
|
|
107,949 |
|
|
|
69,209 |
|
|
Discontinued operation |
|
- |
|
|
|
(235 |
) |
|
|
- |
|
|
|
(3,084 |
) |
| Non-controlling interests |
|
- |
|
|
|
5,099 |
|
|
|
- |
|
|
|
10,557 |
|
| |
|
22,154 |
|
|
|
49,095 |
|
|
|
107,949 |
|
|
|
76,682 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
| Profit per
share attributable to owners of the Company: |
|
|
|
|
|
|
|
|
|
| From continuing and
discontinued operation |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
1.17 |
|
|
$ |
2.29 |
|
|
$ |
5.72 |
|
|
$ |
3.44 |
|
|
Diluted |
$ |
1.14 |
|
|
$ |
2.19 |
|
|
$ |
5.58 |
|
|
$ |
3.29 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
| From continuing
operations |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
1.17 |
|
|
$ |
2.30 |
|
|
$ |
5.72 |
|
|
$ |
3.60 |
|
|
Diluted |
$ |
1.14 |
|
|
$ |
2.20 |
|
|
$ |
5.58 |
|
|
$ |
3.45 |
|
Unaudited Summary Statement of Cash
Flows
|
For the nine month period ended 30 September |
2022 |
|
2021 |
| |
US$’000 |
|
US$’000 |
| Operating
activities |
|
|
|
|
Profit for the period |
107,949 |
|
|
76,682 |
|
| Adjustments for: |
|
|
|
|
Share of losses of joint ventures |
3 |
|
|
29 |
|
|
(Gain) loss on disposal of ships |
(90 |
) |
|
1,055 |
|
|
Loss on disposal of businesses |
- |
|
|
25 |
|
|
Gain on disposal of plant and equipment, furniture and fittings and
motor vehicles |
(30 |
) |
|
- |
|
|
Depreciation and amortisation |
50,098 |
|
|
45,972 |
|
|
Reversal of impairment loss recognised on ships |
(4,073 |
) |
|
(3,557 |
) |
|
Impairment loss recognised on goodwill and intangibles |
- |
|
|
965 |
|
|
Impairment loss on net disposal group |
- |
|
|
2,551 |
|
|
Reversal of impairment loss recognised on right-of-use assets |
- |
|
|
(1,046 |
) |
|
(Reversal of) impairment loss recognised on financial assets |
(45 |
) |
|
658 |
|
|
(Reversal of) provision for onerous contracts |
(896 |
) |
|
1,532 |
|
|
Recognition of share-based payments expenses |
3,382 |
|
|
1,639 |
|
|
Net foreign exchange gain |
(16 |
) |
|
(598 |
) |
|
Interest expense |
11,790 |
|
|
10,168 |
|
|
Interest income |
(840 |
) |
|
(152 |
) |
|
Income tax expense (benefit) |
376 |
|
|
(2,395 |
) |
| Operating cash flows before
movements in working capital and ships |
167,608 |
|
|
133,528 |
|
|
Inventories |
(4,180 |
) |
|
(3,800 |
) |
|
Trade receivables, other receivables and prepayments |
(5,662 |
) |
|
(3,781 |
) |
|
Contract assets |
1,832 |
|
|
(2,510 |
) |
|
Trade and other payables |
(3,772 |
) |
|
3,950 |
|
|
Contract liabilities |
(2,636 |
) |
|
2,322 |
|
|
Due to related parties |
- |
|
|
439 |
|
| Operating cash flows before
movement in ships |
153,190 |
|
|
130,148 |
|
|
Capital expenditure on ships |
(4,931 |
) |
|
(31,736 |
) |
|
Proceeds from disposal of ships |
29,508 |
|
|
47,776 |
|
| Net cash generated from
operations |
177,767 |
|
|
146,188 |
|
|
Interest paid |
(9,960 |
) |
|
(9,445 |
) |
|
Interest received |
840 |
|
|
151 |
|
|
Income tax paid |
(332 |
) |
|
(312 |
) |
| Net cash flows
generated from operating activities |
168,315 |
|
|
136,582 |
|
| |
|
|
|
| Investing
activities |
|
|
|
|
Cash transferred in from disposal group |
- |
|
|
60 |
|
|
Repayment of loans and amount due from joint ventures |
39 |
|
|
3 |
|
|
Purchase of plant and equipment |
(105 |
) |
|
(28 |
) |
|
Purchase of intangible assets |
(112 |
) |
|
- |
|
|
Proceeds from disposal of businesses |
- |
|
|
67 |
|
|
Proceeds from disposal of plant and equipment |
306 |
|
|
- |
|
|
Dividends and distributions received from a joint venture |
- |
|
|
185 |
|
|
Payment for acquisition of subsidiary, net of cash acquired |
- |
|
|
(46,634 |
) |
| Net cash generated
from (used in) investing activities |
128 |
|
|
(46,347 |
) |
| Financing
activities |
|
|
|
|
Long-term interest-bearing debt raised |
- |
|
|
48,031 |
|
|
Payment of principal portion of bank loans and other
borrowings |
(44,073 |
) |
|
(75,004 |
) |
|
Principal repayments on lease liabilities |
(47,636 |
) |
|
(26,766 |
) |
|
Acquisition of treasury shares |
- |
|
|
(1,660 |
) |
|
Restricted cash |
(275 |
) |
|
3,634 |
|
|
Dividends paid |
(38,517 |
) |
|
- |
|
| Net cash flows used in
financing activities |
(130,501 |
) |
|
(51,765 |
) |
| |
|
|
|
| Net increase in cash and cash
equivalents |
37,942 |
|
|
38,470 |
|
| Cash and cash equivalents at
the beginning of the period |
104,243 |
|
|
37,942 |
|
| Effect of exchange rate
changes on the balance of cash held in foreign currencies |
(1,360 |
) |
|
(297 |
) |
| Cash and cash
equivalents at the end of the period |
140,825 |
|
|
76,115 |
|
During the nine months ended September 30, 2021,
cash flows relating to the discontinued operation of the tanker
business were cash generated from operating activities of
$22,424,000, cash generated by investing activities of $210,000 and
cash used in financing activities $26,249,000. There is no
discontinued operation during the nine months ended September 30,
2022.
Non-GAAP Financial Measures
The financial information included in this press
release includes certain “non-GAAP financial measures” as such term
is defined in SEC regulations governing the use of non-GAAP
financial measures. Generally, a non-GAAP financial measure is a
numerical measure of a company’s operating performance, financial
position or cash flows that excludes or includes amounts that are
included in, or excluded from, the most directly comparable measure
calculated and presented in accordance with IFRS. For example,
non-GAAP financial measures may exclude the impact of certain
unique and/or non-operating items such as acquisitions,
divestitures, restructuring charges, large write-offs or items
outside of management’s control. Management believes that the
non-GAAP financial measures described below provide investors and
analysts useful insight into our financial position and operating
performance.
TCE Revenue and TCE per day
TCE revenue is defined as vessel revenue less
voyage expenses. Such TCE revenue, divided by the number of our
operating days during the period, is TCE per day. Vessel revenue
and voyage expenses as reported for our operating segments include
a proportionate share of vessel revenue and voyage expenses
attributable to our joint ventures based on our proportionate
ownership of the joint ventures for the period the joint venture
existed during the relevant period. The number of operating days
used to calculate TCE per day also includes the proportionate share
of our joint ventures’ operating days for the period the joint
venture existed during the relevant period and also includes
charter-in days.
TCE per day is a common shipping industry
performance measure used primarily to compare daily earnings
generated by vessels on time charters with daily earnings generated
by vessels on voyage charters, because charter hire rates for
vessels on voyage charters have to cover voyage expenses and are
generally not expressed in per-day amounts while charter hire rates
for vessels on time charters do not cover voyage expenses and
generally are expressed in per day amounts.
Below is a reconciliation from TCE revenue to
revenue for the three month period ended September 30, 2022 and
2021.
| |
|
Three months ended September 30, |
| |
|
2022 |
|
2021 |
|
(In thousands of U.S. dollars) |
|
Revenue |
|
VoyageExpenses |
|
TCERevenue |
|
Revenue |
|
VoyageExpenses |
|
TCERevenue |
|
Vessel revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Handysize |
|
43,478 |
|
|
(7,639 |
) |
|
35,839 |
|
|
46,460 |
|
|
(6,622 |
) |
|
39,838 |
|
|
Supramax/ultramax |
|
63,528 |
|
|
(15,802 |
) |
|
47,726 |
|
|
87,253 |
|
|
(19,662 |
) |
|
67,591 |
|
|
Other |
|
- |
|
|
|
|
|
|
|
1,325 |
|
|
|
|
|
|
| Other revenue |
|
211 |
|
|
|
|
|
|
|
92 |
|
|
|
|
|
|
| Revenue |
|
107,217 |
|
|
|
|
|
|
|
135,130 |
|
|
|
|
|
|
Below is a reconciliation from TCE revenue to
revenue for the nine months ended September 30, 2022 and 2021.
| |
|
Nine months ended September 30, |
| |
|
2022 |
|
2021 |
|
(In thousands of U.S. dollars) |
|
Revenue |
|
VoyageExpenses |
|
TCERevenue |
|
Revenue |
|
VoyageExpenses |
|
TCERevenue |
|
Vessel revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Handysize |
|
132,115 |
|
|
(22,505 |
) |
|
109,610 |
|
|
107,217 |
|
|
(20,729 |
) |
|
86,488 |
|
|
Supramax/ultramax |
|
214,518 |
|
|
(47,324 |
) |
|
167,194 |
|
|
201,666 |
|
|
(48,441 |
) |
|
153,225 |
|
|
Other |
|
2,082 |
|
|
|
|
|
|
|
4,047 |
|
|
|
|
|
|
| Ship sale revenue |
|
29,981 |
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
| Other revenue |
|
389 |
|
|
|
|
|
|
|
455 |
|
|
|
|
|
|
| Revenue |
|
379,085 |
|
|
|
|
|
|
|
313,385 |
|
|
|
|
|
|
Vessel operating costs per day
Vessel operating costs per day represents vessel
operating costs divided by the number of calendar days for owned
vessels during the period. The vessel operating costs and the
number of calendar days used to calculate vessel operating costs
per day includes the proportionate share of our joint ventures’
vessel operating costs and calendar days for the period the joint
venture existed during the relevant period and excludes charter-in
costs and charter-in days.
Vessel operating costs per day is a non-GAAP
performance measure commonly used in the shipping industry to
provide an understanding of the daily technical management costs
relating to the running of owned vessels.
Long-term charter-in costs and Long-term
charter-in costs per day
Long-term charter-in costs is defined as the
charter costs relating to chartered-in vessels included in our
fleet from time to time, which are vessels for which the period of
the charter that we initially commit to is 12 months or more, even
if at a given time the remaining period of their charter may be
less than 12 months (“long-term charter-in vessels”). Such
long-term charter-in costs, divided by the number of operating days
for the relevant vessels during the period, is long-term charter-in
costs per day. Long-term charter-in costs and long-term
charter-in costs per day are non-GAAP performance measures used
primarily to provide an understanding of the total costs and total
costs per day relating to the charter-in of the Company’s long-term
chartered-in vessels.
Below is a reconciliation from Long-term
charter-in costs to Charter hire costs for the three month period
ended September 30, 2022 and 2021.
| |
|
Three months ended September 30, |
| |
|
2022 |
|
(In thousands of U.S. dollars) |
|
Charter hirecosts |
|
Leasepayments
onShips |
|
Adjustedcharter
hirecosts |
|
Long-termcharter-incosts |
|
Short-termcharter-incosts |
|
Adjustedcharter hirecosts |
|
Handysize |
|
5,746 |
|
|
- |
|
|
5,746 |
|
|
- |
|
|
5,746 |
|
|
5,746 |
|
| Supramax/ultramax |
|
11,870 |
|
|
10,837 |
|
|
22,707 |
|
|
8,587 |
|
|
14,120 |
|
|
22,707 |
|
| |
|
17,616 |
|
|
10,837 |
|
|
28,453 |
|
|
|
|
|
|
|
|
28,453 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three months ended September 30, |
| |
|
2021 |
|
(In thousands of U.S. dollars) |
|
Charter hirecosts |
|
Leasepayments
onShips |
|
Adjustedcharter
hirecosts |
|
Long-termcharter-incosts |
|
Short-termcharter-incosts |
|
Adjustedcharter hirecosts |
|
Handysize |
|
3,538 |
|
|
- |
|
|
3,538 |
|
|
- |
|
|
3,538 |
|
|
3,538 |
|
| Supramax/ultramax |
|
17,458 |
|
|
9,157 |
|
|
26,615 |
|
|
8,422 |
|
|
18,193 |
|
|
26,615 |
|
| |
|
20,996 |
|
|
9,157 |
|
|
30,153 |
|
|
|
|
|
|
|
|
30,153 |
|
Below is a reconciliation from Long-term
charter-in costs to Charter hire costs for the nine months ended
September 30, 2022 and 2021.
| |
Nine months ended September 30, |
| |
2022 |
|
(In thousands of U.S. dollars) |
Charter hirecosts |
|
Leasepayments
onShips |
|
Adjustedcharter
hirecosts |
|
Long-termcharter-incosts |
|
Short-termcharter-incosts |
|
Adjustedcharter hirecosts |
|
Handysize |
11,676 |
|
|
- |
|
|
11,676 |
|
|
- |
|
|
11,676 |
|
|
11,676 |
|
| Supramax/ultramax |
40,473 |
|
|
29,914 |
|
|
70,387 |
|
|
25,296 |
|
|
45,091 |
|
|
70,387 |
|
| |
52,149 |
|
|
29,914 |
|
|
82,063 |
|
|
|
|
|
|
|
|
82,063 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Nine months ended September 30, |
| |
2021 |
|
(In thousands of U.S. dollars) |
Charter hirecosts |
|
Leasepayments
onShips |
|
Adjustedcharter
hirecosts |
|
Long-termcharter-incosts |
|
Short-termcharter-incosts |
|
Adjustedcharter hirecosts |
| Handysize |
8,566 |
|
|
- |
|
|
8,566 |
|
|
- |
|
|
8,566 |
|
|
8,566 |
|
| Supramax/ultramax |
45,570 |
|
|
27,410 |
|
|
72,980 |
|
|
25,989 |
|
|
46,991 |
|
|
72,980 |
|
| |
54,136 |
|
|
27,410 |
|
|
81,546 |
|
|
|
|
|
|
|
|
81,546 |
|
EBITDA and Adjusted EBITDAEBITDA is defined as
earnings before income tax benefit (expense), interest income,
interest expense, share of profits (losses) of joint ventures and
depreciation and amortization. Adjusted EBITDA is EBITDA adjusted
to exclude the items set forth in the table below, which represent
certain non-recurring, non-operating or other items that we believe
are not indicative of the ongoing performance of our core
operations.
EBITDA and Adjusted EBITDA are used by analysts
in the shipping industry as common performance measures to compare
results across peers. EBITDA and Adjusted EBITDA are not items
recognized by IFRS, and should not be considered in isolation or
used as alternatives to profit for the period or any other
indicator of our operating performance.
Our presentation of EBITDA and Adjusted EBITDA
is intended to supplement investors’ understanding of our operating
performance by providing information regarding our ongoing
performance that exclude items we believe do not directly affect
our core operations and enhancing the comparability of our ongoing
performance across periods. Our management considers EBITDA and
Adjusted EBITDA to be useful to investors because such performance
measures provide information regarding the profitability of our
core operations and facilitate comparison of our operating
performance to the operating performance of our peers.
Additionally, our management uses EBITDA and Adjusted EBITDA as
measures when reviewing our operating performance. While we believe
these measures are useful to investors, the definitions of EBITDA
and Adjusted EBITDA used by us may not be comparable to similar
measures used by other companies.
The table below presents the reconciliation
between profit for the period from continuing operations to EBITDA
from continuing operations and Adjusted EBITDA from continuing
operations for the three month period ended September 30, 2022 and
2021 and nine months ended September 30, 2022 and 2021.
| |
|
Three months ended September 30, |
|
|
Nine months ended September 30, |
|
(In thousands of U.S. dollars) |
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
Profit for the period from continuing
operations |
$ |
22,154 |
|
|
$ |
49,330 |
|
|
$ |
107,949 |
|
|
$ |
79,766 |
|
| Adjusted for: |
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense (benefit) |
|
85 |
|
|
|
19 |
|
|
|
376 |
|
|
|
(59 |
) |
|
Interest income |
|
(571 |
) |
|
|
(48 |
) |
|
|
(840 |
) |
|
|
(123 |
) |
|
Interest expense |
|
4,416 |
|
|
|
2,413 |
|
|
|
11,790 |
|
|
|
9,536 |
|
|
Share of losses of joint ventures |
|
4 |
|
|
|
1 |
|
|
|
3 |
|
|
|
29 |
|
|
Depreciation and amortization |
|
16,555 |
|
|
|
15,702 |
|
|
|
50,098 |
|
|
|
45,935 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
| EBITDA from continuing
operations |
|
42,643 |
|
|
|
67,417 |
|
|
|
169,376 |
|
|
|
135,084 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
| Adjusted for |
|
|
|
|
|
|
|
|
|
|
|
|
Reversal of impairment loss recognized on ships |
|
- |
|
|
|
- |
|
|
|
(4,073 |
) |
|
|
(3,557 |
) |
|
Impairment loss recognized on goodwill and intangibles |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
965 |
|
|
Reversal of impairment loss recognized on right-of-use assets |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(1,046 |
) |
|
Primary registration and offering related expenses |
|
3,186 |
|
|
|
- |
|
|
|
3,186 |
|
|
|
- |
|
|
Secondary registration and offering related expenses |
|
- |
|
|
|
633 |
|
|
|
- |
|
|
|
633 |
|
|
Share based compensation |
|
1,990 |
|
|
|
1,127 |
|
|
|
3,382 |
|
|
|
1,639 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
| Adjusted EBITDA from
continuing operations |
|
47,819 |
|
|
|
69,177 |
|
|
|
171,871 |
|
|
|
133,718 |
|
Adjusted net income and Adjusted Earnings per
share
Adjusted net income is defined as Profit for the
period attributable to the owners of the Company adjusted for
reversal of impairment loss recognized on ships, impairment loss
recognized on goodwill and intangibles, reversal of impairment loss
recognized on right-of-use assets, impairment loss on net disposal
group, loss on disposal of business, share based compensation and
non-recurring expenditure. Adjusted Earnings per share represents
this figure divided by the weighted average number of ordinary
shares outstanding for the period.
Adjusted net income is used by management for
forecasting, making operational and strategic decisions, and
evaluating current company performance. It is also one of the
inputs used to calculate the variable amount that will be returned
to shareholders in the form of quarterly dividends and/or share
repurchases. Adjusted net income is not recognized by IFRS, and
should not be considered in isolation or used as alternatives to
profit for the period or any other indicator of our operating
performance.
Our presentation of Adjusted net income is
intended to supplement investors’ understanding of our operating
performance by providing information regarding our ongoing
performance that exclude items we believe do not directly affect
our core operations and enhancing the comparability of our ongoing
performance across periods. We consider Adjusted net income to be
useful to management and investors because it eliminates items that
are unrelated to the overall operating performance and that may
vary significantly from period to period. Identifying these
elements will facilitate comparison of our operating performance to
the operating performance of our peers. The definitions of Adjusted
net income used by us may not be comparable to similar measures
used by other companies.
The table below presents the reconciliation
between Adjusted net income for continuing operations to Profit for
the period attributable to the owners of the Company for continuing
operations for the three month period ended September 30, 2022 and
2021 and nine months ended September 30, 2022 and 2021.
| |
|
Three months ended September 30, |
|
|
Nine months ended September 30, |
|
(In thousands of U.S. dollars) |
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
Profit for the period attributable to owners of the Company
for continuing operations |
$ |
22,154 |
|
|
$ |
44,231 |
|
|
$ |
107,949 |
|
|
$ |
69,209 |
|
| Adjusted for: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reversal of impairment loss recognized on ships |
|
- |
|
|
|
- |
|
|
|
(4,073 |
) |
|
|
(3,557 |
) |
|
Impairment loss recognized on goodwill and intangibles |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
965 |
|
|
Reversal of impairment loss recognized on right-of-use assets |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(1,046 |
) |
|
Primary registration and offering related expenses |
|
3,186 |
|
|
|
- |
|
|
|
3,186 |
|
|
|
- |
|
|
Secondary registration and offering related expenses |
|
- |
|
|
|
633 |
|
|
|
- |
|
|
|
633 |
|
|
Share based compensation |
|
1,990 |
|
|
|
1,127 |
|
|
|
3,382 |
|
|
|
1,639 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted net income
for continuing operations |
|
27,330 |
|
|
|
45,991 |
|
|
|
110,444 |
|
|
|
67,843 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Weighted average number of
shares on which the profit per share and adjusted earnings per
share has been calculated |
|
18,996,493 |
|
|
|
19,242,116 |
|
|
|
18,878,988 |
|
|
|
19,216,386 |
|
| Effect of dilutive potential
ordinary shares |
|
460,637 |
|
|
|
863,168 |
|
|
|
460,637 |
|
|
|
863,168 |
|
| Weighted average number of
ordinary shares for the purpose of calculating diluted profit per
share and diluted adjusted earnings per share |
|
19,457,130 |
|
|
|
20,105,284 |
|
|
|
19,339,625 |
|
|
|
20,079,554 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Basic profit per share for
continuing operations |
$ |
1.17 |
|
|
$ |
2.30 |
|
|
$ |
5.72 |
|
|
$ |
3.60 |
|
| Diluted profit per share for
continuing operations |
|
1.14 |
|
|
|
2.20 |
|
|
|
5.58 |
|
|
|
3.45 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Basic adjusted earnings per
share for continuing operations |
$ |
1.44 |
|
|
$ |
2.39 |
|
|
$ |
5.85 |
|
|
$ |
3.53 |
|
| Diluted adjusted earnings per
share for continuing operations |
|
1.40 |
|
|
|
2.29 |
|
|
|
5.71 |
|
|
|
3.38 |
|
Headline earnings and Headline earnings per
share
The Johannesburg Stock Exchange, or JSE,
requires that we calculate and publicly disclose Headline earnings
per share and diluted Headline earnings per share. Headline
earnings per share is calculated using net income which has been
determined based on IFRS. Accordingly, this may differ to the
Headline earnings per share calculation of other companies listed
on the JSE because such companies may report their financial
results under a different financial reporting framework such as
U.S. GAAP.
Headline earnings for the period represents
profit for the period attributable to owners of the Company
adjusted for the re-measurements that are more closely aligned to
the operating or trading results as set forth below, and Headline
earnings per share represents this figure divided by the weighted
average number of ordinary shares outstanding for the period.
The table below presents a reconciliation
between Profit for the period attributable to owners of the Company
to Headline earnings for the three month period ended September 30,
2022 and 2021 and nine months ended September 30, 2022 and
2021.
| |
|
Three months ended September 30, |
|
|
Nine months ended September 30, |
|
(In thousands of U.S. dollars, except
per share data) |
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
Profit for the period attributable to owners of the
Company |
$ |
22,154 |
|
|
$ |
43,996 |
|
|
$ |
107,949 |
|
|
$ |
66,125 |
|
| Adjusted for: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reversal of impairment loss recognized on ships |
|
- |
|
|
|
- |
|
|
|
(4,073 |
) |
|
|
(3,557 |
) |
|
Reversal of impairment loss recognized on right-of-use assets |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(1,046 |
) |
|
Impairment loss recognized on goodwill and intangibles |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
965 |
|
|
Impairment loss on net disposal group |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
2,551 |
|
|
Loss on disposals of business |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
25 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Headline
earnings |
|
22,154 |
|
|
|
43,996 |
|
|
|
103,876 |
|
|
|
65,063 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Weighted average number of
shares on which the profit per share and headline earnings per
share has been calculated |
|
18,996,493 |
|
|
|
19,242,116 |
|
|
|
18,878,988 |
|
|
|
19,216,386 |
|
| Effect of dilutive potential
ordinary shares |
|
460,637 |
|
|
|
863,168 |
|
|
|
460,637 |
|
|
|
863,168 |
|
| Weighted average number of
ordinary shares for the purpose of calculating diluted profit per
share and diluted headline earnings per share |
|
19,457,130 |
|
|
|
20,105,284 |
|
|
|
19,339,625 |
|
|
|
20,079,554 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Basic profit per share |
$ |
1.17 |
|
|
$ |
2.29 |
|
|
$ |
5.72 |
|
|
$ |
3.44 |
|
| Diluted profit per share |
|
1.14 |
|
|
|
2.19 |
|
|
|
5.58 |
|
|
|
3.29 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Basic headline earnings per
share |
$ |
1.17 |
|
|
$ |
2.29 |
|
|
$ |
5.50 |
|
|
$ |
3.39 |
|
| Diluted headline earnings per
share |
|
1.14 |
|
|
|
2.19 |
|
|
|
5.37 |
|
|
|
3.24 |
|
Responsibility Statement
The directors of the Company (including those
who may have delegated detailed supervision of this announcement)
have taken all reasonable care to ensure that the facts stated and
all opinions expressed herein are fair and accurate and that no
material facts have been omitted from this announcement, the
omission of which would make any statement in this announcement
misleading, and they jointly and severally accept responsibility
accordingly.
Where any information has been extracted or
reproduced from published or otherwise publicly available sources
or obtained from the Offeror, the sole responsibility of the
Directors has been to ensure, through reasonable enquiries, that
such information is accurately extracted from such sources or, as
the case may be, accurately reflected or reproduced herein.
Forward-Looking Statements
This press release contains forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act 1995 with respect to Grindrod Shipping’s financial
condition, results of operations, cash flows, business strategies,
operating efficiencies, competitive position, growth opportunities,
plans and objectives of management, and other matters. These
forward-looking statements, including, among others, those relating
to our future business prospects, revenues and income, are
necessarily estimates and involve a number of risks and
uncertainties that could cause actual results to differ materially
from those suggested by the forward-looking statements.
Accordingly, these forward-looking statements should be considered
in light of various important factors, including those set forth
below. Words such as “may,” “expects,” “intends,” “plans,”
“believes,” “anticipates,” “hopes,” “estimates,” and variations of
such words and similar expressions are intended to identify
forward-looking statements. These forward-looking statements are
based on the information available to, and the expectations and
assumptions deemed reasonable by Grindrod Shipping at the time
these statements were made. Although Grindrod Shipping believes
that the expectations reflected in such forward-looking statements
are reasonable, no assurance can be given that such expectations
will prove to have been correct. These statements involve known and
unknown risks and are based upon a number of assumptions and
estimates which are inherently subject to significant uncertainties
and contingencies, many of which are beyond the control of Grindrod
Shipping. Actual results may differ materially from those expressed
or implied by such forward-looking statements. Important factors
that could cause actual results to differ materially from estimates
or projections contained in the forward-looking statements include,
without limitation, Grindrod Shipping’s future operating or
financial results; the strength of world economies, including, in
particular, in China and the rest of the Asia-Pacific region; the
effects of the COVID-19 pandemic on our operations and the demand
and trading patterns for the drybulk market, and the duration of
these effects; cyclicality of the drybulk market, including general
drybulk shipping market conditions and trends, including
fluctuations in charter hire rates and vessel values; changes in
supply and demand in the drybulk shipping industry, including the
market for Grindrod Shipping’s vessels; changes in the value of
Grindrod Shipping’s vessels; changes in Grindrod Shipping’s
business strategy and expected capital spending or operating
expenses, including drydocking, surveys, upgrades and insurance
costs; competition within the drybulk industry; seasonal
fluctuations within the drybulk industry; Grindrod Shipping’s
ability to employ its vessels in the spot market and its ability to
enter into time charters after its current charters expire; general
economic conditions and conditions in the oil and coal industries;
Grindrod Shipping’s ability to satisfy the technical, health,
safety and compliance standards of its customers; the failure of
counterparties to our contracts to fully perform their obligations
with Grindrod Shipping; Grindrod Shipping’s ability to execute its
growth strategy; international political and economic conditions
including additional tariffs imposed by China and the United
States; potential disruption of shipping routes due to weather,
accidents, political events, natural disasters or other
catastrophic events; vessel breakdowns; corruption, piracy,
military conflicts, political instability and terrorism in
locations where we may operate, including the recent conflicts
between Russia and Ukraine and tensions between China and Taiwan;
fluctuations in interest rates and foreign exchange rates and the
changes in the method pursuant to which the London Interbank
Offered Rate and other benchmark rates are determined; changes in
the costs associated with owning and operating Grindrod Shipping’s
vessels; changes in, and Grindrod Shipping’s compliance with,
governmental, tax, environmental, health and safety regulations
including the International Maritime Organization, or IMO 2020,
regulations limiting sulfur content in fuels; potential liability
from pending or future litigation; Grindrod Shipping’s ability to
procure or have access to financing, its liquidity and the adequacy
of cash flows for its operation; the continued borrowing
availability under Grindrod Shipping’s debt agreements and
compliance with the covenants contained therein; Grindrod
Shipping’s ability to fund future capital expenditures and
investments in the construction, acquisition and refurbishment of
its vessels; Grindrod Shipping’s dependence on key personnel;
Grindrod Shipping’s expectations regarding the availability of
vessel acquisitions and its ability to buy and sell vessels and to
charter-in vessels as planned or at prices we deem satisfactory;
adequacy of Grindrod Shipping’s insurance coverage; effects of new
technological innovation and advances in vessel design; and the
other factors set out in “Item 3. Key Information-Risk Factors” in
our Annual Report on Form 20-F for the year ended December 31,
2021 filed with the Securities and Exchange Commission on
March 25, 2022. Grindrod Shipping undertakes no obligation to
update publicly or release any revisions to these forward-looking
statements to reflect events or circumstances after the date of
this press release or to reflect the occurrence of unanticipated
events except as required by law.
|
Company Contact:Stephen GriffithsInterim CEO /
CFOGrindrod Shipping Holdings Ltd.200 Cantonment Road, #03-01
SouthpointSingapore, 089763Email: ir@grindrodshipping.comWebsite:
www.grinshipping.com |
Investor Relations / Media Contact: Nicolas
Bornozis / Paul LampoutisCapital Link, Inc.230 Park Avenue, Suite
1536New York, N.Y. 10169Tel.: (212) 661-7566Fax: (212)
661-7526Email: grindrod@capitallink.com |
|
|
|
Grindrod Shipping (NASDAQ:GRIN)
Gráfica de Acción Histórica
De May 2024 a Jun 2024
Grindrod Shipping (NASDAQ:GRIN)
Gráfica de Acción Histórica
De Jun 2023 a Jun 2024
