TIDMHCL
RNS Number : 9736R
Hellenic Carriers Limited
18 September 2014
H1 2014 Financial Results
Press Release 18 September 2014
HELLENIC CARRIERS LIMITED
REPORTS 2014 INTERIM UNAUDITED RESULTS
Hellenic Carriers Limited, ("Hellenic" or the "Company") (AIM:
HCL), an international provider of marine transportation services,
which owns and operates through its subsidiaries a fleet of six 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 2014.
The Company's management team will be holding a conference call
and webcast for analysts on Thursday, 18 September 2014, at 1pm
(London), 3pm (Athens) and 8am (New York) to discuss the
results.
H1 2014 FINANCIAL HIGHLIGHTS
Þ 167% increase in revenue: US$10.4 million (H1 2013: US$3.9
million)
Þ 260% increase in EBITDA(1) : US$0.8 million positive (H1 2013:
US$0.5 million negative)
Þ 26% reduction in operating loss: US$3.4 million (H1 2013:
US$4.6 million)
Þ 22% reduction in net loss: US$5.3 million (H1 2013: US$6.8
million)
Þ Gearing ratio(2) at 60.6% as of 30 June 2014 (53.4% as of 31
December 2013)
Þ Total cash including restricted cash US$12.7 million as of 30
June 2014 (US$27.7 million as of 31 December 2013)
H1 2014 OPERATIONAL HIGHLIGHTS
Þ Doubling of the fleet size: operation of 5.7 vessels on
average compared to 3.0 vessels in H1 2013
Þ Improving the age profile of vessels: weighted average age of
fleet is 10.4 as of 30 June 2014 (30 June 2013: 16.0 years)
Þ Achieving higher time charter rates: Time Charter Equivalent
(TCE)-gross rate of US$10,914 (H1 2013: US$7,735)
Þ Outperforming the Panamax and Supramax Average: The TCE-gross
rate outperformed both the Panamax Average of US$8,399 and Supramax
Average of US$10,328 for H1 2014
Þ Keeping the daily operating expenses stable: Average daily
vessel operating expenses of US$5,205 (H1 2013: US$5,260)
______________________________ (1)
EBITDA has been calculated as follows: Operating profit +
Depreciation + Depreciation of dry-docking costs + Impairment
charge - Gain on sale of vessel - 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 to net debt and stockholders' equity)
Management Commentary
Fotini Karamanli, Chief Executive Officer of Hellenic Carriers
Limited, stated:
"The market recovery which commenced in the 4(th) quarter of
2013 has not gained the anticipated momentum to date. However,
experience dictates that an upward trend may not always be a
straight line and any rapid improvement, such as the one
experienced in the latter part of 2013, may at times be followed by
a downward correction. Volatility has prevailed with constantly
varying and unstable geopolitical conditions, policy changes in
exporting and importing countries, fluctuating currencies and
commodity prices being some of the factors, which have impacted and
may continue to have an impact on the global shipping market.
Notwithstanding this volatile environment, the Company still
managed to deliver better results compared to last year. As a
result of a carefully expanded and younger fleet revenues more than
doubled, EBITDA turned positive, high utilization rates were
maintained and operating costs were reduced. The ships were
employed mainly under short term period fixtures or for single time
charter trips, achieving on average a gross daily rate, which
outperformed the average Panamax and Supramax daily rate for the
period. In the short term and assuming market conditions remain
similar, the chartering strategy will not change thereby avoiding
longer term commitments at distressed rates, since in a volatile
market it is important to be in a position to take advantage of the
pockets of opportunity which invariably arise both on the
chartering as well as on the sale and purchase front.
Going forward, we consider that the fundamentals of the dry bulk
shipping market remain positive. The pace of fleet growth has been
steadily decelerating since 2013, while demand growth remains
consistently strong. Despite a slowing Chinese GDP growth rate,
imports of iron ore into China are 17% higher year on year. With
Australian and Brazilian iron ore production capacity also set to
grow and Chinese iron ore producers closing down due to
competitiveness, the prospects of increased shipments of iron ore
into China remain realistic. At the same time India has been
absorbing ever growing shipments of imported thermal coal. During
the second quarter of 2014, thermal power generation in India
increased by 10% year on year, while mining output increased only
by 5%. In the shorter term, a strong US harvest is expected to
support the grain trade affecting mainly the Panamax and Supramax
sectors.
In light of the aforementioned combination of factors and adding
an element of seasonality, we expect that we will experience a
firming rate environment during the fourth quarter of 2014. Our
Company is well positioned to take advantage of such a development.
However, as mentioned above, although the fundamentals are solid,
the road towards recovery may not always be smooth, hence we will
continue to be vigilant and flexible in order to secure efficient
operations and proactive in order to take advantage of market
opportunities as they arise."
Fleet Developments
For the six months ended 30 June 2014, the Company operated
through its subsidiaries a fleet of 5.7 vessels on average compared
to 3.0 vessels for the six months ended 30 June 2013. Following the
purchase of two newbuilding Kamsarmax vessels (M/V Odysseas and M/V
Konstantinos II) in the second half of 2013 and one second-hand
Supramax vessel (M/V Pistis) in January 2014, the operating fleet
in H1 2014 includes one Panamax, two Supramax, one Handymax and two
Kamsarmax vessels with an aggregate carrying capacity of 384,864
dwt and a weighted average age of 10.4 years as of 30 June
2014.
M/V Pistis, a Supramax vessel, was delivered on 7 January 2014
at a contract price of US$16.16 million.
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
------------------ ----------- ----------------------------- -------- ----------
Halla Engineering
M/V Hellenic & Heavy Industries,
Horizon Handymax Korea 1995 44,809
------------------ ----------- ----------------------------- -------- ----------
Zhejiang Ouhua Shipbuilding
M/V Odysseas 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: 6 Vessels 384,864
------------------------------------------------------------------------ ----------
Debt / Financing Activities
As of 30 June 2014, total bank debt (divided into three
facilities) was reported at US$98.2 million compared to US$97.3
million at 31 December 2013. The amount of US$2.5 million was
drawndown during H1 2014 to partly finance the acquisition of M/V
Pistis. Scheduled principal payments during H1 2014 amounted to
US$1.7 million and a further US$1.7 million is scheduled to be paid
during H2 2014. The Company's loan facilities mature in August
2019, May 2020 and May 2023.
Fleet Deployment
During H1 2014 the performance of the dry bulk freight market
was not as strong as anticipated with rates coming under pressure
from factors including: 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 finally lower port congestion combined
with the continued supply of new tonnage entering the market. These
factors had a heavier impact on the sub-capesize sectors, the
panamaxes and supramaxes, where Hellenic is active.
During this period the Company decided to avoid locking in the
vessels for the long term and focused on trading in the spot market
and under short term period fixtures thus taking advantage of
pockets of opportunity presented due to the freight market
volatility.
In particular, at the end of February 2014 the M/V Pistis was
employed for a period of 3 to maximum 6 months at a gross hire rate
of US$12,600 per day. The M/V Konstantinos D was employed from
March 2014 until June 2014 under a short-term period time charter
contract at a gross daily rate of US$12,500, while in April 2014
the M/V Hellenic Horizon was employed under a time charter
agreement for 5 to 7 months at a gross daily rate of US$11,000. For
the remainder of the period the fleet traded in the spot market and
performed single time charter trips. The H1 2014 Time Charter
Equivalent-gross rate amounting to US$10,914 outperformed the
Panamax Average of 4 T/C Routes (US$8,399) and the Supramax Average
of 6 T/C Routes (US$10,328) as well as their combined average of
US$9,364 for the same period.
H1 2014 Results
For the six months ended 30 June 2014, Hellenic reported total
revenues of US$10.4 million compared to US$3.9 million for the same
period of 2013. The fleet utilisation during the period was
reported at 95.3% compared to 98.6% in H1 2013. The increase in
revenues is mainly attributed to the increase in the number of
vessels operated during the period in conjunction with higher dry
bulk freight rates during H1 2014 compared to H1 2013.
During H1 2014 the Company, through its subsidiaries, operated
5.7 vessels which earned on average net earnings (TCE-net) of
US$8,596 per day compared to 3.0 vessels and average net earnings
of US$7,038 per day in H1 2013. Although average gross earnings
(TCE-gross) achieved amounted to US$10,914 per day compared to
US$7,735 per day in H1 2013, the ships in H1 2014 had to perform
greater ballast legs in search for more profitable routes and as a
result the cost of bunkers (included in voyage expenses) was
increased.
As a result of the bigger fleet operated during H1 2014, vessel
operating expenses increased to a total of US$5.6 million from a
total of US$2.9 million in H1 2013. Average daily vessel operating
expenses (OPEX) during H1 2014 were reduced to US$5,205 compared to
US$5,260 incurred in H1 2013, demonstrating the effect of an
efficiently run younger fleet. The analysis of the main categories
of OPEX as a percentage of total OPEX during H1 2014 and H1 2013 is
presented below:
H1 2014 H1 2013
-------------------- -------- --------
Crew expenses 61% 62%
-------------------- -------- --------
Insurance 10% 11%
-------------------- -------- --------
Repairs and spares 10% 7%
-------------------- -------- --------
Lubricants 9% 10%
-------------------- -------- --------
Stores 8% 8%
-------------------- -------- --------
Other 2% 2%
-------------------- -------- --------
Operating loss amounted to US$3.4 million for H1 2014 compared
to an operating loss of US$4.6 million for the same period of
2013.
The net loss for H1 2014 amounted to US$5.3 million representing
a loss per share of US$0.12 calculated on 45,616,851 weighted
average number of shares, whereas, the net loss for H1 2013
amounted to US$6.8 million representing a US$0.15 loss per share.
We note that depreciation of US$5.4 million included in the net
loss for H1 2014 is by US$1.3 million higher compared to
depreciation of US$4.1 million included in the net loss for H1
2013.
Earnings before Tax, Interest, Depreciation and Amortisation
(EBITDA) was reported positive at US$0.8 million for the six months
ended 30 June 2014 compared to US$0.5 million negative for the same
period of 2013.
Selected Financial Data:
(US$ in 000's except per share
data) 30.06.2014 30.06.2013
---------------------------------- ----------- -----------
Revenue 10,390 3,937
---------------------------------- ----------- -----------
EBITDA (1) 830 (502)
---------------------------------- ----------- -----------
Operating loss (3,391) (4,597)
---------------------------------- ----------- -----------
Net Loss (5,312) (6,780)
---------------------------------- ----------- -----------
Weighted average shares (basic
& diluted) 45,616,851 45,616,851
---------------------------------- ----------- -----------
Loss per share (basic & diluted) (0.12) (0.15)
---------------------------------- ----------- -----------
(US$ in 000's except per share
data) 30.06.2014 31.12.2013
------------------------------------ ----------- -----------
Total assets 157,747 161,116
------------------------------------ ----------- -----------
Long-term debt, net of unamortised
arrangement fees 98,211 97,326
------------------------------------ ----------- -----------
Total equity 55,565 60,877
------------------------------------ ----------- -----------
(US$ in 000's except per share
data) 30.06.2014 30.06.2013
-------------------------------- ----------- -----------
Cash flows provided by/ (used
in) operating activities 1,869 (836)
-------------------------------- ----------- -----------
Cash flows used in investing
activities (15,694) (1,784)
-------------------------------- ----------- -----------
Cash flows provided by/ (used
in) financing activities 4,286 (4,943)
-------------------------------- ----------- -----------
(1) EBITDA has been calculated as follows: Operating profit +
Depreciation + Depreciation of dry-docking costs + Impairment
charge - Gain on sale of vessel - Other operating income
Fleet Operating Data:
H1 2014 H1 2013
-------------------------------- -------- --------
Fleet data:
-------------------------------- -------- --------
Average number of operating
vessels 5.7 3.0
-------------------------------- -------- --------
Number of operating vessels
at period end 6.0 3.0
-------------------------------- -------- --------
Total dwt at period end 384,864 169,116
-------------------------------- -------- --------
Ownership days ((1) () 1,080 543
-------------------------------- -------- --------
Available days ((2) () 952 509
-------------------------------- -------- --------
Operating days ((3) () 907 502
-------------------------------- -------- --------
Fleet utilisation ((4) () 95.3% 98.6%
-------------------------------- -------- --------
Average daily results (in
US$):
-------------------------------- -------- --------
TCE rate - Gross ((5) () 10,914 7,735
-------------------------------- -------- --------
TCE rate - Net ((6) () 8,596 7,038
-------------------------------- -------- --------
Average daily vessel operating
expenses ((7) () 5,205 5,260
-------------------------------- -------- --------
(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
Debt as of 30 June 2014 amounted to US$98.2 million compared to
US$97.3 million as of 31 December 2013.
As of 30 June 2014, debt (debt, net of deferred financing fees)
to total capitalisation (debt and stockholders' equity) amounted to
63.9% compared to 61.5% as of 31 December 2013. Net debt (debt less
cash and cash equivalents) to total capitalisation amounted to
60.6% on 30 June 2014 compared to 53.4% on 31 December 2013.
Total cash, including restricted cash amounted to US$12.7
million as of 30 June 2014 and US$27.7 million as of 31 December
2013. Restricted cash as of 30 June 2014 amounted to US$4.0
million, decreased from US$9.5 million reported on 31 December 2013
mainly due to the use of the pledged amount of US$5.3 million (M/V
Hellenic Sea sale proceeds) to partly finance the acquisition of
M/V Pistis in January 2014.
Dividend
In order to reinforce the Company's liquidity and optimize the
use of cash as market opportunities arise, the Directors of the
Company did not recommend payment of an interim dividend.
Conference Call details
The Company's management team will be holding a conference call
and webcast on Thursday, 18 September 2014, at 1pm (London), 3pm
(Athens) and 8am (New York) to discuss the results.
Participants should dial into the call 10 minutes prior to the
scheduled time using the following numbers: 0800-953-0329 (UK Toll
Free Dial-in), 00800-4413-1378 (Greece Toll Free Dial-in),
1-866-819-7111 (U.S. Toll Free Dial-in), or +44 (0)1452-542-301
(Standard International Dial-in). Please quote "Hellenic
Carriers".
A telephonic replay of the conference call will be available
until 25 September 2014 by dialling 0800-953-1533 (UK Toll Free
Dial-in), 1-866-247-4222 (US Toll Free Dial-in), or +44
(0)1452-550-000 (Standard International Dial-in). Access Code:
36347958#
Slides and audio webcast:
There will also be a live and then archived webcast of the
conference call, accessible through the Hellenic Carriers website
(www.hellenic-carriers.com). Participants to the live webcast
should register on the website approximately 10 minutes prior to
the start of the webcast.
For further information please contact:
Hellenic Carriers Limited
Fotini Karamanli, Chief Executive Officer
Alkis Papadopoulos, Chief Financial Officer
E-mail: info@hellenic-carriers.com +30 210 455 8900
Charles Stanley Securities
Nominated Adviser & Broker
Mark Taylor +44 (0) 207 149 6000
Carl Holmes +44 (0) 207 149 6000
Capital Link
Nicolas Bornozis +1 212 661 7566 (New York)
Maria Chercheletzi +44 (0) 20 3206 1320 (London)
E-mail: helleniccarriers@capitallink.com
Further Information - Notes to Editors
About Hellenic Carriers Limited
Hellenic Carriers Limited owns and trades 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 six vessels, comprising
one Panamax, two Supramax, one Handymax and two Kamsarmax vessels
with an aggregate carrying capacity of 384,864 dwt and a weighted
average age of 10.6 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 2014
(Amounts expressed in thousands of U.S. Dollars, except share
and per share data)
30 June
------------------------
2014 2013
----------- -----------
Unaudited Unaudited
US$'000 US$'000
Revenue 10,390 3,937
----------- -----------
Expenses and other income
Voyage expenses (2,102) (355)
Voyage expenses - related
parties (104) -
Vessel operating expenses (5,621) (2,856)
Management fees - related
parties (1.080) (396)
Depreciation (4,730) (3,376)
Depreciation of dry-docking
costs (677) (719)
General and administrative
expenses (653) (832)
Other operating income 1,186 -
Operating loss (3,391) (4,597)
Finance expense (1,916) (2,485)
Finance income 9 295
Foreign currency (loss)/
gain, net (14) 7
(1,921) (2,183)
----------- -----------
Loss for the period (5,312) (6,780)
=========== ===========
Loss per share (US$):
Basic and diluted LPS
for the period (0.12) (0.15)
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 2014
(Amounts expressed in thousands of U.S. Dollars)
30 June
----------------------
2014 2013
---------- ----------
Unaudited Unaudited
US$'000 US$'000
Loss for the period (5,312) (6,780)
Net gain on cash flow
hedges - 958
---------- ----------
Other comprehensive income - 958
---------- ----------
Total comprehensive loss
for the period (5,312) (5,822)
========== ==========
INTERIM CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 30 June 2014
(Amounts expressed in thousands of U.S. Dollars)
30 June 31 December
---------- ------------
2014 2013
---------- ------------
Unaudited Audited
US$'000 US$'000
ASSETS
Non-current assets
Vessels, net 136,615 124,701
Advances for vessels acquisition - 1,616
Office furniture and equipment 1 1
---------- ------------
136,616 126,318
---------- ------------
Current assets
Inventories 1,307 458
Trade receivables, net 1,689 1,701
Claims receivable 1,135 238
Available for sale investments,
net of impairment - -
Due from related parties 3,765 3,845
Prepaid expenses and other
assets 562 852
Restricted cash 4,033 9,525
Cash and cash equivalents 8,640 18,179
---------- ------------
21,131 34,798
---------- ------------
TOTAL ASSETS 157,747 161,116
========== ============
EQUITY AND LIABILITIES
Shareholders' equity
Issued share capital 46 46
Share premium 54,355 54,355
Capital contributions 10,826 10,826
Accumulated deficit (9,662) (4,350)
---------- ------------
Total equity 55,565 60,877
---------- ------------
Non-current liabilities
Long-term debt 94,956 94,081
---------- ------------
94,956 94,081
---------- ------------
Current liabilities
Trade payables 2,473 1,320
Current portion of long-term
debt 3,255 3,245
Accrued liabilities and
other payables 1,300 1,325
Deferred revenue 198 268
7,226 6,158
---------- ------------
Total Liabilities 102,182 100,239
---------- ------------
TOTAL EQUITY AND LIABILITIES 157,747 161,116
========== ============
INTERIM CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the six months ended 30 June 2014
(Amounts expressed in thousands of U.S. Dollars, except share
and per share data)
Cash (Accumulated
Issued flow deficit)/
Par share Share Capital hedging Retained Total
Number value capital premium Contributions reserves earnings equity
of shares US$ US$'000 US$'000 US$'000 US$'000 US$'000 US$'000
----------- ------- -------- --------- --------------- ---------- -------------- ---------
As at 1
January 2013 45,616,851 0.001 46 54,355 10,826 (1,158) 9,847 73,916
=========== ======= ======== ========= =============== ========== ============== =========
Loss for the
period - - - - - - (6,780) (6,780)
Other
comprehensive
income - - - - - 958 - 958
Total
comprehensive
loss - - - - - 958 (6,780) (5,822)
As at 30 June
2013 45,616,851 0.001 46 54,355 10,826 (200) 3,067 68,094
=========== ======= ======== ========= =============== ========== ============== =========
As at 1
January 2014 45,616,851 0.001 46 54,355 10,826 - (4,350) 60,877
=========== ======= ======== ========= =============== ========== ============== =========
Loss for the
period - - - - - - (5,312) (5,312)
Other
comprehensive
income - - - - - - - -
----------- ------- -------- --------- --------------- ---------- -------------- ---------
Total
comprehensive
loss - - - - - - (5,312) (5,312)
As at 30 June
2014 45,616,851 0.001 46 54,355 10,826 - (9,662) 55,565
=========== ======= ======== ========= =============== ========== ============== =========
.
INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS
For the six months ended 30 June 2014
(Amounts expressed in thousands of U.S. Dollars)
30 June
----------------------
2014 2013
---------- ----------
Unaudited Unaudited
----------
US$'000 US$'000
Operating activities
Loss for the period (5,312) (6,780)
Adjustments to reconcile loss
to net cash flows:
Depreciation 4,730 3,376
Depreciation of dry-docking
costs 677 719
Finance expense 1,916 2,485
Finance income (9) (295)
---------- ----------
2,002 (495)
Increase in inventories (849) (61)
Increase in trade receivables,
claims receivable, prepaid
expenses and other assets (596) (394)
Decrease in due from related
parties 80 56
Increase in trade payables,
accrued liabilities and other
payables 1,302 55
(Decrease)/ Increase in deferred
revenue (70) 3
---------- ----------
Net cash flows provided by/
(used in) operating activities 1,869 (836)
---------- ----------
Investing activities
Acquisition/ improvement of
vessels (15,241) -
Advance payments for vessels
under construction - (992)
Dry-docking costs (464) (1,126)
Interest received 11 334
---------- ----------
Net cash flows used in investing
activities (15,694) (1,784)
---------- ----------
Financing activities
Proceeds from issue of long-term
debt 2,500 -
Repayment of long-term debt (1,720) (2,300)
Restricted cash 5,492 (159)
Finance expenses paid (1,986) (2,484)
Net cash flows provided by/
(used in) financing activities 4,286 (4,943)
---------- ----------
Net decrease in cash and cash
equivalents (9,539) (7,563)
Cash and cash equivalents
at 1 January 18,179 28,468
---------- ----------
Cash and cash equivalents
at 30 June 8,640 20,905
========== ==========
This information is provided by RNS
The company news service from the London Stock Exchange
END
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