1st Sep 2008 07:00
1st September 2008
2008 INTERIM RESULTS AND DIVIDEND ANNOUNCEMENT
Hellenic Carriers Limited ('Hellenic Carriers' or the 'Company')
Hellenic Carriers (AIM: HCL), an international provider of marine transportation services, which owns a fleet of dry bulk vessels that transport iron ore, grain, steel products and minor bulk cargoes, announces Interim Results for the six months ended 30th June 2008.
The Company's management has scheduled a conference call and webcast today, 1st September 2008, at 4:30 PM (UK); 6:30 PM (Athens) and 11:30 AM (EDT) to discuss these results.
Financial Highlights
Revenues increased by 166.4% to US$ 34.1 million from US$12.8 million in 1H 2007
EBITDA increased by 185.1% to US$ 26.8 million from US$9.4 million in 1H 2007
Net income increased by 188.6% to US$ 20.2 million from US$7.0 million in 1H 2007
Interim dividend of 9.6 pence per share or total GBP 4,379,217.70 to be paid in October 2008
Earnings per share of US$ 0.44 in 1H 2008 calculated on 45,616,851 shares outstanding on 30 June 2008
Increase of EBITDA Margin to 79% in 1H2008 from 73% in 1H 2007
Operating Highlights
Hellenic operated a fleet of 4.8 vessels on average in 1H 2008 compared to a fleet of 3 vessels in 1H 2007
During this period Hellenic took delivery of two vessels it had previously agreed to acquire bringing the total fleet to 6 vessels by 30.6.2008
During the first half of 2008, M/V HELLENIC HORIZON underwent its Intermediate Survey afloat and M/V HELLENIC BREEZE completed its Special Survey
The daily average TCE increased by 73% to US$ 38,799 in 1H 2008 from US$22,374 in 1H 2007
The daily average operating expenses increased by about 12% to US$5,136 from US$4,576 in 1H 2007
Hellenic took advantage of the robust freight environment during Q2 2008 to fix 3 of its vessels, the Panamaxes "HELLENIC WIND" and "HELLENIC BREEZE" and the Handymax "HELLENIC HORIZON" on time charters for periods ranging from 1-3 years
Post 1H 2008, Hellenic acquired a 2001 built Supramax vessel, expanding the fleet to 7 vessels
Including the Supramax to be delivered by 15th November 2008 Hellenic's time charter cover stands at 89% for the remainder of 2008, 59% for 2009 and 28% for 2010
Management Commentary
Fotini Karamanlis, Chief Executive Officer, commented: "We are pleased to report very strong operational and financial results for the first six months of 2008. The increased size of our fleet during this period, as well as our proactive chartering strategy enabled us to take full advantage of the continued market strength to achieve record earnings, while also locking in strong cash flows for the remainder of 2008, 2009 and part of 2010. We are also pleased to announce the payment of an interim dividend of 9.6pence per share in October 2008, linked with Hellenic's impressive performance in 1H 2008 and consistent with our policy of distributing 50% of the Company's annual net income to our shareholders.
"We believe in the continued strength of the dry bulk shipping market due to the sustainable demand from developing economies as a result of their urbanisation and infrastructure development. In this context we decided to acquire a modern Supramax vessel with early delivery, thereby growing our fleet and improving its versatility at times of intense demand. Strong cash flow generation, moderate leverage and access to bank financing coupled with a modern fleet and expert management well positions the Company to capitalise on opportunities to further expand its fleet and revenue base, thus enhancing value for its shareholders."
Interim 2008 Results
For the six months ended 30th June 2008, Hellenic reported total revenues of US$34.1 million compared to US$12.8 million for 1H 2007, an increase of 166.4%. EBITDA increased by 185.1% to US$26.8 million in 1H 2008 from US$9.4 million in 2007. Net income increased by approximately 188.6% to US$20.2 million in 1H 2008 from US$7.0 million in 2007.
During the six months ended 30th June 2008, the Company owned 4.8 vessels on average, earning an average TCE rate of US$38,799 per day compared to 3.0 vessels and average TCE rate of US$22,374 per day in 1H 2007. This highly satisfactory TCE rate has been achieved despite the fact that one of our vessels (HELLENIC BREEZE) was out of service for approximately 24 days in January undergoing its scheduled Special Survey in China.
The vessel operating expenses in 1H 2008 increased by US$2.0 million to a total of US$4.5 million compared to 1H 2007. This increase is mainly attributed to the increase in the number of vessels operated in the period. In particular, out of the US$2 million increase, only US$0.3 million is attributed to the increase in operating expenses for the three vessels owned by Hellenic during the same period in 2007 and the remaining US$1.7 million is attributed to the additional vessels in the Company's fleet.
Dividend
The Board of Directors of the Company has approved an interim dividend for 2008 of 9.6 pence per share or GBP 4,379,217.70. The dividend approved by the Board of Directors will be payable to shareholders on record as of 26th September 2008 with the ex-dividend date being 24th September 2008 and the dividend payment date on 24th October 2008. The interim dividend represents approximately 1/3 of the annual 2008 dividend. Next dividend payment reflecting approximately 2/3 of the 2008 annual dividend will be announced in March 2009 and paid in May 2009.
The previous annual dividend of GBP 501,785.36 was paid in May 2008 and was based on the company's net income for the period commencing on 30 November 2007, when Hellenic was admitted on AIM, and ending on 31 December 2007.
Financing Activities
In March 2008 we announced that we entered into a new loan facility with Piraeus Bank S.A. of up to US$190 million (the "Piraeus Facility") and we also accepted an offer from the National Bank of Greece (the "NBG Offer Letter") for a loan facility of up to US$120 million.
Out of the US$190 million Piraeus Facility, US$110 million have already been drawn down to partly finance the cost of the M/V KONSTANTINOS D and the M/V HELLENIC WIND and to fully refinance the then existing indebtedness on the M/V HELLENIC SEA and the M/V HELLENIC BREEZE. The second advance of up to US$80 million is designed to provide the Company with a credit facility available until 31st December 2010 to be used in the purchase of additional dry bulk vessels between 40,000 and 75,000 dwt built after 1995.
The NBG Offer Letter is for a credit line up to US$70 million, which together with the refinancing of the Company's existing debt to the National Bank of Greece will result in a loan facility up to US$120 million in total, to be repaid quarterly within 8 years of drawdown. In particular, once the relevant loan documents are in place, the purpose of this facility will be (i) to refinance in full the existing indebtedness in the amount of approximately US$47million presently secured on the MV Hellenic Sky and the MV Hellenic Horizon and (ii) to provide the Company with additional credit of up to $70 million to be used to finance up to 90% of the purchase price of the M/V FURNESS TIMIKA (to be renamed).
Selected Financial Data
|
(US$ in 000's except per share data) |
Six months ended 30 June 2008 |
Six months ended 30 June 2007 |
|
Revenue |
34,086 |
12,792 |
|
EBITDA (1) |
26,803 |
9,364 |
|
Profit for the year |
20,181 |
6,952 |
|
Six months ended 30 June 2008 |
Twelve months ended 31 December 2007 |
|
|
Total assets |
251,243 |
138,614 |
|
Long-term debt, net of unamortized arrangement fees |
157,991 |
66,566 |
|
Total equity |
86,751 |
67,212 |
|
Six months ended 30 June 2008 |
Six months ended 30 June 2007 |
|
|
Cash flow from operating activities |
27,867 |
7,190 |
|
Cash flow from investing activities |
(119,521) |
122 |
|
Cash flow from financing activities |
88,209 |
(7,918) |
EBITDA has been calculated as follows: Operating profit + Depreciation + Depreciation of dry-docking costs
Fleet expansion
The Company announced on 15th May 2008 that it had taken delivery of the M/V Hellenic Wind, a 1997 built Panamax with a carrying capacity of 74,000 dwt, which had previously been acquired for US$70 million. On 1st April 2008 Hellenic Carriers announced that it had taken delivery of the M/V Konstantinos D, a 2000 built Supramax with a carrying capacity of 50,326 dwt, which had also previously been acquired for US$62 million.
On 14th July 2008, the Company announced that it had entered into an agreement to acquire M/V Furness Timika (to be renamed), a 2001 built 52,508 dwt Supramax bulk carrier charter free for US$69.7 million. The vessel is expected to be delivered to the Company between 15th September and 15th November 2008.
Following delivery of the Supramax vessel, Hellenic's fleet will total seven modern dry bulk carriers, consisting of four Panamaxes, two Supramaxes and one Handymax, with an average age of approximately 12.4 years as of 31st July, 2008, and a carrying capacity of 425,269 dwt.
Fleet deployment
On 1st May 2008 the Company announced a 3 year time charter agreement for M/V HELLENIC WIND at the gross rate of US$54,000 per day. The charter commenced on 14th May 2008.
On 16 May 2008 it announced a time charter agreement for M/V Hellenic Breeze for a minimum period of 11 to 13 months at the gross rate of US$71,000 per day. The charter commenced on 13th June 2008.
Similarly, on 23rd May 2008, the Company announced it entered a time charter agreement for M/V Hellenic Horizon for a period of minimum 24 months to about 26 months at the gross rate of US$45,000 per day. That charter commenced on 19th July 2008.
Taking into consideration the entire fleet of 7 vessels, which includes the Supramax yet to be delivered to the Company, the time charter coverage for the remainder of 2008 is approximately 89%, 59% for 2009 and approximately 28% for the whole of 2010.
Fleet Operating Data
|
Six months ended 30 June 2008 |
Six month ended 30 June 2007 |
|
|
Fleet data: |
||
|
Average number of vessels |
4.8 |
3.0 |
|
Number of vessels at year end |
6 |
3 |
|
Total dwt at period end |
372,761 |
203,626 |
|
Ownership days (1) |
875 |
543 |
|
Available days (2) |
849 |
543 |
|
Operating days (3) |
836 |
543 |
|
Fleet utilization (4) |
98.5% |
100.0% |
|
Average daily results (in US$): |
||
|
Time Charter Equivalent (TCE) rate (5) |
$38,799 |
$22,374 |
|
Average daily vessel operating expenses (6) |
$5,136 |
$4,576 |
Ownership days are the cumulative days in a period during which each vessel is owned by the Company
Available days are ownership days less the days that the vessels are at scheduled off-hire for maintenance or vessel repositioning
Operating days are the available days less all unforeseen off-hires
Fleet utilization is measured by dividing the vessels' operating days by the vessels' available days
TCE is defined as vessels' total revenues less voyage expenses divided by the number of the available days for the period
Average daily vessel operating expenses is defined as vessel operating expenses divided by ownership days.
The Fleet Deployment of Hellenic is as follows
|
Vessel |
Type |
Year Built |
Yard |
Carrying Capacity (dwt) |
Charter Type |
T/C Expiration Date (1) |
Daily Charter Rate US$ (Gross) |
|
M/V Hellenic Breeze |
Panamax |
1993 |
Tsuneishi Shipbuilding, Japan |
69,601 |
T/C |
28/07/2009 |
71,000 |
|
M/V Hellenic Sky |
Panamax |
1994 |
Sasebo Heavy Industries, Japan |
68,591 |
T/C |
27/11/2008 |
23,000 |
|
M/V Hellenic Sea |
Panamax |
1991 |
Jiangnan Shipyard, China |
65,434 |
T/C |
30/05/2009 |
37,500 |
|
M/V Hellenic Wind |
Panamax |
1997 |
Tsuneishi, Shipbuidling, Japan |
74,000 |
T/C |
14/07/2011 |
54,000 |
|
M/V Hellenic Horizon |
Handymax |
1995 |
Halla Engineering & Heavy Industries, Korea |
44,809 |
T/C |
04/10/2010 |
45,000 |
|
M/V Konstantinos D |
Supramax |
2000 |
Mitsui Engineering & Shipbuilding, Japan |
50,326 |
T/C |
27/05/2010 |
64,250(2) |
To be delivered
|
Vessel |
Type |
Year Built |
Yard |
Carrying Capacity (dwt) |
Charter Type |
T/C Expiration Date (1) |
Daily Charter Rate US$ (Gross) |
Delivery Date |
|
M/V Furness Timika, to be Renamed |
Supramax |
2001 |
Shin Kurushima, Japan. |
52,508 |
N/A |
N/A |
N/A |
N/A |
|
Total Fleet: 7 Vessels |
425,269 |
|||||||
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.
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, 1st September 2008, at 4:30 PM (UK); 6:30 PM (Athens) and 11:30 AM (EDT) to discuss these results.
Conference Call details
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 (US Toll Free Dial-in), or +44 (0)1452-542-301 (Standard International Dial-in). Please quote "Hellenic Carriers" to the operator.
A telephonic replay of the conference call will be available until 8 September 2008 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 Karamanlis, Chief Executive Officer
E-mail: [email protected] +30 210 455 8900
Jefferies International Limited
Nick Davies +44 (0) 20 7029 8000
Schuyler Evans
Capital Link - London
Annie Evangeli, Senior Associate +44 (0) 20 3206 1322
E-mail: [email protected]
Capital Link - New York
Ramnique Grewal, Vice President +1 212 661 7566
E-mail: [email protected]
Notes to Editors
About Hellenic Carriers Limited
Hellenic Carriers Limited owns and operates a fleet of dry bulk vessels that transport iron ore, coal, grain, steel products, cement, alumina, and other dry bulk cargoes worldwide. Its current fleet consists of six vessels, comprising four Panamaxes, one Supramax and one Handymax with an aggregate carrying capacity of 372,761 dwt. The Company has also agreed to acquire a Supramax vessel with expected delivery between 15th September and 15th November 2008. Including the new Supramax vessel to be delivered, Hellenic's fleet has an aggregate carrying capacity of 425,269 dwt and an average age of 12.4 years as at 31st July 2008.
INTERIM CONDENSED CONSOLIDATED INCOME STATEMENT
For the six months ended 30 June 2008
(Expressed in thousands of U.S. Dollars, except share and per share data)
|
For the six months ended 30 June |
|||||
|
2008 |
2007 |
||||
|
Unaudited |
Unaudited |
||||
|
U.S.$'000 |
U.S.$'000 |
||||
|
Revenue |
34,086 |
12,792 |
|||
|
Expenses and other income |
|||||
|
Voyage expenses |
(1,140) |
(599) |
|||
|
Voyage expenses - related party |
- |
(44) |
|||
|
Vessel operating expenses |
(4,494) |
(2,485) |
|||
|
Management fees - related party |
(552) |
(300) |
|||
|
Depreciation |
(4,539) |
(1,361) |
|||
|
Depreciation of dry-docking costs |
(441) |
(228) |
|||
|
General and administrative expenses |
(1,097) |
- |
|||
|
Operating profit |
21,823 |
7,775 |
|||
|
Finance expense |
(2,442) |
(945) |
|||
|
Finance income |
781 |
122 122 |
|||
|
Foreign currency gain, net |
19 |
- |
|||
|
(1,642) |
(823) |
||||
|
Profit for the year |
20,181 |
6,952 |
|||
|
Earnings per share (U.S.$): |
|||||
|
Basic and diluted EPS for the year |
0.44 |
- |
|||
|
Weighted average number of shares |
45,616,851 |
- |
|||
INTERIM CONDENSED CONSOLIDATED BALANCE SHEET
At 30 June 2008
(Expressed in thousands of U.S. Dollars)
|
30 June 2008 |
31 December 2007 |
||||
|
|
Unaudited |
Audited |
|||
|
U.S.$'000 |
U.S.$'000 |
||||
|
ASSETS |
|||||
|
Non-current assets |
|||||
|
Vessels |
202,938 |
74,416 |
|||
|
Advances for vessel acquisitions |
- |
13,200 |
|||
|
|
202,938 |
87,616 |
|||
|
Current assets |
|||||
|
Inventories |
442 |
314 |
|||
|
Trade receivables |
536 |
120 |
|||
|
Due from related parties |
1,890 |
1,930 |
|||
|
Prepaid expenses and other assets |
757 |
357 |
|||
|
Financial Instruments |
369 |
- |
|||
|
Restricted cash |
511 |
1,032 |
|||
|
Cash and cash equivalents |
43,800 |
47,245 |
|||
|
|
48,305 |
50,998 |
|||
|
TOTAL ASSETS |
251, 243 |
138,614 |
|||
|
EQUITY AND LIABILITIES |
|||||
|
Equity attributable to shareholders of Hellenic Carriers Limited |
|||||
|
Issued share capital |
46 |
46 |
|||
|
Share premium |
54,355 |
54,355 |
|||
|
Capital contributions |
10,826 |
10,826 |
|||
|
Other Reserves |
369 |
- |
|||
|
Retained earnings |
21,155 |
1,985 |
|||
|
Total equity |
86, 751 |
67,212 |
|||
|
|
|||||
|
Non-current liabilities |
|||||
|
Long-term debt |
137,550 |
58,900 |
|||
|
Other non current liabilities |
- |
38 |
|||
|
|
137,550 |
58,938 |
|||
|
Current liabilities |
|||||
|
Trade payables |
1,638 |
1,056 |
|||
|
Current portion of long-term debt |
20,441 |
7,666 |
|||
|
Accrued liabilities and other payables |
1,232 |
1,010 |
|||
|
Deferred revenue |
3,299 |
2,129 |
|||
|
Due to related parties |
332 |
603 |
|||
|
|
26,942 |
12,464 |
|||
|
Total Liabilities |
164,492 |
71,402 |
|||
|
TOTAL EQUITY AND LIABILITIES |
|
251,243 |
|
138,614 |
INTERIM CONDENSED CONSOLIDATED CASH FLOW STATEMENT
For the six months ended 30 June 2008
(Expressed in thousands of U.S. Dollars)
|
For the six months ended 30 June |
||||
|
|
2008 |
2007 |
||
|
Unaudited |
Unaudited |
|||
|
U.S.$'000 |
U.S.$'000 |
|||
|
Operating activities |
||||
|
Profit for the period |
20,181 |
6,952 |
||
|
Adjustments to reconcile profit to net cash flows: |
||||
|
Depreciation |
4,539 |
1,361 |
||
|
Depreciation of dry-docking costs |
441 |
228 |
||
|
Amortisation of deferred income |
(341) |
- |
||
|
Finance expense |
2,442 |
945 |
||
|
Finance income |
(781) |
(122) |
||
|
Foreign currency gain, net |
(19) |
- |
||
|
|
26,462 |
9,364 |
||
|
Increase in inventories |
(128) |
(100) |
||
|
(Increase)/decrease in trade receivables, prepaid expenses and other assets |
(816) |
127 |
||
|
Decrease/(increase) in due from related parties |
40 |
(2,577) |
||
|
Increase in trade payables, accrued liabilities and other payables |
1,069 |
182 |
||
|
Increase in deferred revenue |
1,511 |
194 |
||
|
Decrease in due to related parties |
(271) |
- |
||
|
Net cash flows from operating activities |
27,867 |
7,190 |
||
|
|
||||
|
Investing activities |
||||
|
Acquisition/ improvement of vessels |
(118,665) |
- |
||
|
Dry-docking costs |
(1,637) |
- |
||
|
Advances for vessel acquisitions |
- |
- |
||
|
Interest received |
781 |
122 |
||
|
Net cash flows (used in)/provided by investing activities |
(119,521) |
122 |
||
|
|
||||
|
Financing activities |
||||
|
Proceeds from issue of long -term debt, net of debt discount |
109,391 |
- |
||
|
Repayment of long-term debt |
(18,050) |
(1,800) |
||
|
Restricted cash |
521 |
37 |
||
|
Interest paid |
(2,642) |
(955) |
||
|
Dividends paid |
|
(1,011) |
(5,200) |
|
|
Net cash flows provided by/(used in) financing activities |
88,209 |
(7,918) |
||
|
Net decrease in cash and cash equivalents |
(3,445) |
(606) |
||
|
Cash and cash equivalents at 1 January |
47,245 |
4,867 |
||
|
Cash and cash equivalents at 30 June |
|
43,800 |
4,261 |
|
Related Shares:
HCL.L