12th Mar 2008 07:01
Hellenic Carriers Limited12 March 2008 FOR IMMEDIATE RELEASE 2007 Financial Results HELLENIC CARRIERS REPORTS FINANCIAL RESULTS FOR YEAR ENDED DECEMBER 31, 2007DECLARES ITS FIRST DIVIDEND OF GBP 0.011 per share Press Release 12 March 2008 Hellenic Carriers Limited, ("Hellenic" or the "Company") (AIM: HCL), aninternational provider of marine transportation services, which owns andoperates a fleet of six drybulk vessels that transport iron ore, grain, steelproducts and minor bulk cargoes, today announced its full year results for theperiod ended 31 December 2007. The Company's management has scheduled a conference call and webcast today, 12March 2008, at 4:30 PM (GMT); 6:30 PM (Athens) and 12:30 PM (EDT) to discussthese results. 2007 Highlights: • Hellenic Carriers was incorporated under the laws of Jersey on 26 September 2007 • On 30 November 2007, Hellenic Carriers successfully completed an Initial Public Offering (IPO) of 13,684,970 new ordinary shares at a price of GBP 2.12 per share raising net proceeds of US$54.4 million with intention to partially reduce existing indebtedness and fund further fleet expansion • Hellenic increased Revenue by approximately 117% over full year 2006 • Net Income increased by approximately 260% for 2007 compared to the same period in 2006 • Basic and diluted Earnings per Share for 2007 of US$0.42 calculated on 45,616,851 shares • Hellenic agreed to acquire an additional Panamax vessel (1997 built) increasing the fleet to a total of six vessels Management Commentary: Fotini Karamanlis, Chief Executive Officer, commented: "Hellenic has madesignificant achievements during 2007 by becoming a publicly listed company onthe AIM market of the London Stock Exchange. We are pleased report strongearnings during a period when we are expanding our fleet and establishingourselves in the public markets. We are also very pleased to announce that we proceed on schedule with payment ofour first dividend as a public company. The dividend payment is linked withHellenic's outstanding performance in 2007. These impressive results confirmHellenic's long standing track record of efficiency and profitability whichfurther strengthens our growth prospects. Fleet growth was achieved through the acquisition of two vessels, a Supramax wehad agreed to acquire prior to our IPO and a Panamax we agreed to acquire inDecember 2007 which in part, were financed with the proceeds of the IPO. Thevessels are scheduled for delivery between March and May 2008, thereby expandingour revenue and profit generation capacity. Our chartering strategy is focused on generating strong, stable and predictablecash flows delivering sustainable and attractive dividends to our shareholders.To achieve this we secure our vessels under medium to long term time charterswith first class charterers. We also opportunistically seek shorter termemployment options to maximize profits. To this effect, 63% of our fleet available days in 2008 are already securedunder time charters. Three of our six ships will be coming available forrechartering in the second quarter, thus increasing our operating leverage andgiving us the opportunity to fix these vessels at stronger rates than currentlevels. Furthermore, in 2008, we expect to benefit from the revenue and profitgeneration capacity of our larger fleet of six vessels. With our moderate leverage, prudent chartering strategy and strong managementexpertise, we believe that Hellenic Carriers is well positioned to continue tobenefit from the positive fundamentals of the dry bulk sector." Full Year 2007 Results: For the full year 2007, Hellenic reported total revenues of US$32.8 millioncompared to US$15.1 million for 2006, an increase of 117.2%. EBITDA increased by155.7% from US$9.7 million in 2006 to US$24.8 million in 2007. Net incomeincreased by approximately 260% from US$5.4 million in 2006 to US$19.3 millionin 2007. Basic and diluted earnings per share calculated on 45,616,851 weighted averagenumber of shares were US$0.42 for the full year ended 31 December 2007 comparedto earnings per share of US$0.12 for the full year of 2006. In 2007, the Company owned 3.1 vessels on average, earning on average US$27,311per day compared to 2.6 vessels and average earnings of US$15,413 per day in2006. In 2007 the vessel operating expenses increased by US$1.4 million to a total ofUS$5.5 million. The rise is mainly attributed to higher crew wages, higherinsurance premium resulting from the increase in vessel values, higher lubricantcosts as well as the addition of a further vessel to our fleet. The decline ofthe US Dollar against foreign currencies also had a negative impact on theoperating expenses. The Company's general and administrative expenses for the post IPO period in2007 were US$0.3 million. Management fees increased by US$0.1million and arecharged by Mantinia, a related third party, in accordance with thesub-management agreements. Selected Financial Data:(US$ in 000's except per share data) 2007 2006Revenue 32,804 15,102EBITDA (1) 24,798 9,711Profit for the year 19,325 5,361 Weighted average shares (basic & diluted) 45,616,851 45,616,851Earnings per share (basic & diluted) 0.42 0.12 Total assets 138,614 47,243Long-term debt, net of unamortized arrangement fees 66,566 30,285Total equity 67,212 15,686 Cash flow from operating activities 29,550 10,587Cash flow from investing activities (52,843) (21,508)Cash flow from financing activities 65,671 10,886 (1) EBITDA has been calculated as follows: Operating profit + Depreciation +Depreciation of dry-docking costs Dividends: Subject to Shareholder approval, the Board of Directors of the Company willpropose a final dividend for 2007 of 1.10 pence per share or total GBP501,785.36. The dividend proposed by the Board of Directors, is expected to beapproved by the AGM to be held on 21 May 2008. Fleet Operating Data: 2007 2006Fleet data:Average number of vessels 3.1 2.6Number of vessels at year end 4 3Total dwt at year end 248,435 203,626Ownership days (1) 1,148 950Available days (2) 1,140 923Operating days (3) 1,136 923Fleet utilization (4) 99.6% 100.0% Average daily results (in US$):Time Charter Equivalent (TCE) rate (5) $27,311 $15,413Average daily vessel operating expenses (6) $4,761 $4,318 (1) Ownership days are the cumulative days in a period during which each vessel is owned by the 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 utilization is measured by dividing the vessels' operating days by the vessels' available days (5) TCE is defined as vessels' total revenues less voyage expenses divided by the number of the available days for the period (6) Average daily vessel operating expenses is defined as vessel operating expenses divided by ownership days. Latest Fleet Developments: On 18 December 2007, the Company announced that it had entered into an agreementto acquire M/V "Orchid Star", a 1997 built 74,000 dwt Panamax bulk carrier for atotal purchase price of US$70 million. The vessel is expected to be delivered tothe Company between March and May 2008. On 19 February 2008, the Company announced that M/V "Hellenic Breeze" was fixedon time charter to Oslo listed Golden Ocean for a minimum period of 2 monthswith maximum charter expiry on 15 June 2008, at the gross daily rate ofUS$64,000, Fleet Profile and Deployment: Taking into consideration the entire fleet of 6 vessels, which includes thePanamax and Supramax yet to be delivered to the Company, the estimated timecharter coverage for 2008 is approximately 63% and 24% for 2009. The Fleet Deployment of Hellenic is as follows: Vessel Type Year Yard Carrying Charter T/C Daily Built Capacity Type Expiration Charter Date (1) Rate US$ (dwt) (Gross) M/V Hellenic Panamax 1993 Tsuneishi 69,601 T/C 15/06/2008 64,000 Breeze Shipbuilding, JapanM/V Hellenic Sky Panamax 1994 Sasebo Heavy 68,591 T/C 27/11/2008 23,000 Industries, JapanM/V Hellenic Sea Panamax 1991 Jiangnan 65,434 T/C 30/05/2009 37,500 Shipyard, China M/V Hellenic Handymax 1995 Halla 44,809 T/C 20/04/2008 25,750 Horizon Engineering & Heavy Industries, Korea To be delivered Vessel Type Year Yard Carrying Charter T/C Daily Delivery Built Cappacity Type Expiration Charter Date Date (1) Rate US$ (dwt) (Gross)M/V Aegean Hawk, Supramax 2000 Mitsui 50,326 T/C 30/06/2010 64,250(2) 1 March to be Engineering & 2008 renamed M/V Shipbuilding, - Konstantinos D Japan 30 April 2008M/V Orchid Star, Panamax 1997 Tsuneishi, 74,000 N/A N/A N/A 1 March to be renamed Shipbuidling, 2008 Japan - 31 May 2008 Total Fleet: 6 Vessels 372,761 (1) The latest charter expiration date represents the last day on which the charterer may redeliver the vessel to us upon the termination of the charter assuming that all options for additional hire periods under our charter are exercised. (2) For the period from the date of delivery to the 365th day of the charter and thereafter at a rate of US$48,250 per day. Conference Call and Webcast Details: The Company's management has scheduled a conference call and webcast today, 12March 2008, at 4:30 PM (GMT); 6:30 PM (Athens) and 12:30 PM (EDT) to discussthese results. Conference Call details: Participants should dial into the call 10 minutes prior to the scheduled timeusing the following numbers: 0800-953-0329 (UK Toll Free Dial-in),00800-4413-1378 (Greece Toll Free Dial-in), 1-866-819-7111 (US Toll FreeDial-in), or +44 (0)1452-542-301 (Standard International Dial-in). Please quote"Hellenic Carriers". In case of any problems with the above numbers, please dial 0800-694-1503 (UKToll Free Dial-in), 00800-127-011 (Greece Toll Free Dial-in), 1-866-223-0615 (USToll Free Dial-in), or +44 (0)1452-586-513 (Standard International Dial-in).Please quote "Hellenic Carriers". A telephonic replay of the conference call will be available until 19 March,2008 by dialling 0800-953-1533 (UK Toll Free Dial-in), 1-866-247-4222 (US TollFree Dial-in), or +44 (0)1452-550-000 (Standard International Dial-in). AccessCode: 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 10minutes prior to the start of the webcast. For further information please contact: Hellenic Carriers LimitedFotini Karamanlis, Chief Executive OfficerE-mail: [email protected] +30 210 455 8900 Jefferies International LimitedNick Davies +44 20 7029 8000Schuyler Evans Capital Link Inc.Ramnique Grewal +1 212 661 7566 (New York)Vice President +44 20 7614 2950 (London)E-Mail: [email protected] Further Information - Notes to Editors About Hellenic Carriers Limited Hellenic Carriers Limited owns and operates a fleet of dry bulk vessels thattransport iron ore, coal, grain, steel products, cement, alumina, and other drybulk cargoes worldwide. Its current fleet consists of four vessels, comprisingthree Panamaxes and one Handymax. The Company has also contracted to acquire aSupramax vessel with expected delivery between 1 March and 30 April 2008 and aPanamax vessel with expected delivery between 1 March and May 31 2008. Includingthe new Supramax and Panamax vessels to be delivered, Hellenic's fleet has anaggregate carrying capacity of 372,761 dwt and an average age of 12.9 years asof 29 February 2008. CONSOLIDATED INCOME STATEMENTFor the year ended 31 December 2007 2007 2006 U.S.$'000 U.S.$'000 Revenue 32,804 15,102 Expenses and other incomeVoyage expenses (1,570) (832)Voyage expenses - related party (100) (44)Vessel operating expenses (5,466) (4,102)Management fees - related party (643) (523)Depreciation (3,196) (2,109)Depreciation of dry-docking costs (454) (603)General and administrative expenses (264) -Other income 37 110Operating profit 21,148 6,999 Finance expense (2,309) (1,720)Finance income 553 108Foreign currency loss, net (67) (26) (1,823) (1,638)Profit for the year 19,325 5,361 Earnings per share (U.S.$):Basic and diluted EPS for the year 0.42 0.12Weighted average number of shares 45,616,851 45,616,851 CONSOLIDATED BALANCE SHEETAs at 31 December 2007 2007 2006 U.S.$'000 U.S.$'000ASSETSNon-current assetsVessels 74,416 37,870Advances for vessel acquisitions 13,200 - 87,616 37,870Current assetsInventories 314 206Trade receivables 120 147Due from related parties 1,930 3,870Prepaid expenses and other assets 357 60Restricted cash 1,032 223Cash and cash equivalents 47,245 4,867 50,998 9,373TOTAL ASSETS 138,614 47,243 EQUITY AND LIABILITIESEquity attributable to shareholders of HellenicCarriers LimitedIssued share capital 46 -Share premium 54,355 -Capital contributions 10,826 15,326Retained earnings 1,985 360Total equity 67,212 15,686 Non-current liabilitiesLong-term debt 58,900 26,702Other non-current liabilities 38 32 58,938 26,734Current liabilitiesTrade payables 1,056 564Current portion of long-term debt 7,666 3,583Accrued liabilities and other payables 1,010 316Deferred revenue 2,129 360Due to Related Parties 603 - 12,464 4,823Total Liabilities 71,402 31,557 TOTAL EQUITY AND LIABILITIES 138,614 47,243 CONSOLIDATED CASH FLOW STATEMENTFor the year ended 31 December 2007 2007 2006 U.S.$'000 U.S.$'000Operating activitiesProfit for the year 19,325 5,361Adjustments to reconcile profit to net cash flows:Depreciation 3,196 2,109Depreciation of dry-docking costs 454 603Amortization of deferred income (159) -Finance expense 2,309 1,720Finance income (553) (108)Foreign currency loss, net 67 26 24,639 9,711Increase in inventories (108) (120)Increase in trade receivables, prepaid expenses and other (270) 212assetsDecrease in due from related parties 1,940 266Increase in trade payables, accrued liabilities and other 818 241payablesIncrease in deferred revenue 1,928 277Increase in due to related parties 603 -Net cash flows from operating activities 29,550 10,587 Investing activitiesAcquisition/ improvement of vessels (40,030) (20,760)Dry-docking costs (166) (856)Advances for vessel acquisitions (13,200) -Interest received 553 108Net cash flows used in investing activities (52,843) (21,508) Financing activitiesProceeds from issue of long -term debt 57,732 13,955Repayment of long-term debt (21,500) (3,075)Proceeds from initial public offering 58,943 -Issuance costs (4,542) -Restricted cash (809) (223)Interest paid (1,953) (1,571)Shareholders' contributions - 7,000Dividends paid (22,200) (5,200)Net cash flows provided by financing activities 65,671 10,886Net increase/ (decrease) in cash and cash equivalents 42,378 (35) Cash and cash equivalents at 1 January 4,867 4,902 Cash and cash equivalents at 31 December 47,245 4,867 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
HCL.L