3rd Sep 2009 07:00
3 September 2009
2009 INTERIM RESULTS
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 its Interim Results for the six months ended 30 June 2009.
On the same day, the Company's management has scheduled a conference call and webcast at 3.00pm (BST), 5.00pm (Athens) and 10.00am (EDT) to discuss the Results.
Financial Highlights
Revenues of US$32.4 million from US$34.1 million in 1H 2008 (a decrease of 5%)
EBITDA of US$22.5 million from US$26.8 million in 1H 2008 (a decrease of 16%)
Net income of US$12.5 million from US$20.2 million in 1H 2008 (a decrease of 38%)
Earnings per share of US$0.27 in 1H 2009 calculated on 45,616,851 shares outstanding on 30 June 2009
Net cash flows from operating activities of US$21.3 million from US$27.9 million in 1H 2008 (a decrease of 24%).
Operating Highlights
Operation of a fleet of 6 vessels on average in 1H 2009 compared to 4.8 vessels in 1H 2008
Daily average TCE ofUS$28,297 in 1H 2009 from US$38,800 in 1H 2008 (a decrease of 27%)
Daily average operating expenses ofUS$4,776 from US$5,136 in 1H 2008 (a decrease of 7%)
Time Charter agreements on three of the vessels, the Panamaxes M/Vs Hellenic Sky and Hellenic Sea and the Handymax M/V Hellenic Horizon ranging minimum between 4-13 months
Restructuring and extension of the existing charters for the M/Vs Hellenic Breeze and Konstantinos D
Time charter cover for the remaining of 2009 at 83% and 59% for the whole of 2010
Management Commentary
Fotini Karamanlis, Chief Executive Officer, commented: "Hellenic Carriers achieved strong results during the first half of 2009 despite the protracted uncertainty and volatility in the global financial and shipping markets. During this period we continued with our strategy of seeking to enhance our cash flow visibility through a prudent chartering approach, maintain a strong balance sheet with high liquidity and moderate debt and reinforce our ability to take advantage of asset acquisition opportunities that surface during weak markets.
"During the reporting period the charter coverage of the fleet was optimised by arranging time charters for five of the six vessels. Three new time charter agreements for the M/Vs Hellenic Sea, Hellenic Horizon and Hellenic Sky during the strong freight environment in 2Q 2009 were entered into and the two existing charters on the M/Vs Hellenic Breeze and Konstantinos D were restructured, thus expanding our contracted revenue base.
"In addition, our bank debt during the first half of 2009 was restructured by reducing the principal instalments for 2009 and 2010 and waivers for our financial covenants were also obtained until January 2011. With a net debt to book capitalization at 44% and cash reserves of $64 million on June 30, 2009, Hellenic has a strong balance sheet. In order to maintain our strong cash position, and in light of the continued uncertain market environment, our Board of Directors decided not to distribute an interim dividend for 2009.
"Demand for dry bulk commodities during 1H2009 has been much stronger than anticipated mainly due to a resilient growth trend in China. The effect of strong demand has been reflected in the BDI, which has outperformed most market participants' expectations. We believe that during 2H2009 we may also see a gradual increase in imports of raw materials from the West and Japan. With regard to fleet supply, although the theoretical order book causes uncertainty, the situation for the time being is better managed than previously envisaged. Although volatility will continue to prevail in the short term, we remain optimistic about the long term outlook of the dry bulk sector and believe that Hellenic is well placed to deal with both challenges and acquisition opportunities that may arise."
Interim 2009 Results
For the six months ended 30 June 2009, Hellenic reported total revenues of US$32.4 million compared to US$34.1 million for 1H 2008, a decrease of only 5% despite the sharp drop in freight rates and reflecting the higher average number of vessels in our fleet. The vessel operating expenses in 1H 2009 increased to a total of US$5.2 million compared to US$4.5 million in 1H 2008 mainly as the result of the larger fleet size (average of 6 vessels in 1H2009 vs 4.8 vessels in 1H2008). Nevertheless, on a per vessel daily basis, average operating expenses decreased by 7%. Moreover, General and Administrative Expenses decreased by approximately 18%.
EBITDA decreased by 16% to US$22.5 million in 1H 2009 from US$26.8 million in 1H 2008 primarily owed to higher voyage and vessel operating expenses mainly reflecting the larger size of our fleet as mentioned above. Net income decreased by 38% to US$12.5 million in 1H 2009 from US$20.2 million in 1H 2008, reflecting higher depreciation charges as a result of the larger average fleet and higher finance costs.
During the six months ended 30 June 2009, the Company through its subsidiaries owned 6 vessels on average, earning an average TCE rate of US$28,297 per day compared to 4.8 vessels and average TCE rate of US$38,800 per day in 1H 2008.
Dividend
At the Company's second AGM held on 20 May 2009 the final dividend in respect of the financial year 2008 of GBP 0.023 per ordinary share in the share capital of the Company was approved.
After careful consideration, in order to maintain our strong and healthy cash position, the Board of Directors decided that it is in the benefit of the Company not to distribute an interim dividend for the financial year 2009. Not distributing an interim dividend allows us to be in a position to take advantage of any potential acquisition opportunities as well as face challenges, which may arise due to the volatile freight market.
Financing Activities
During the reporting period, the principal repayment instalments for both 2009 and 2010 were successfully restructured and waivers for the financial covenants from lenders were obtained until 1 January 2011.
Selected Financial Data
|
(US$ in 000's except per share data) |
Six months ended 30 June 2009 |
Six months ended 30 June 2008 |
|
Revenue |
32,361 |
34,086 |
|
EBITDA (1) |
22,457 |
26,803 |
|
Profit for the period |
12,524 |
20,181 |
|
Six months ended 30 June 2009 |
Twelve months ended 31 December 2008 |
|
|
Total assets |
246,745 |
243,150 |
|
Long-term debt, net of unamortized arrangement fees |
140,525 |
147,521 |
|
Total equity |
95,891 |
82,617 |
|
Six months ended 30 June 2009 |
Six months ended 30 June 2008 |
|
|
Cash flow from operating activities |
21,264 |
27,886 |
|
Cash flow from investing activities |
(81) |
(119,521) |
|
Cash flow from financing activities |
(11,233) |
88,190 |
(1) EBITDA has been calculated as follows: Operating profit + Depreciation + Depreciation of dry-docking costs
Fleet deployment / Dry-dockings
The M/V Hellenic Sea performed its scheduled Special Survey in April-May 2009 in China immediately upon the completion of its previous charter to Sinochart. The cost of the Special Survey, which was within budget, will be amortized over the course of the next 2.5 years.
During 1H 2009, the Company through its respective shipowning subsidiaries restructured two of its existing time charters, extending their duration and optimizing fleet charter coverage, and entered into new time charters for three other vessels.
Specifically, in January 2009, its wholly owned subsidiary Nestos Shipping Corporation extended the time charter for the M/V Hellenic Breeze, which would have expired in April 2009, for a minimum period of two years at the gross rate of US$24,000 per day commencing as of 1 January, 2009. In February 2009, its wholly owned subsidiary Vergina Shipping Ltd extended the time charter for the M/V Konstantinos D, which would have expired in March 2010, until 25 January 2011 at the gross daily rate of US$35,000 commencing as of 5 February 2009.
In 2Q 2009 three of the vessels were fixed for medium to longer term periods. In particular, the M/V Hellenic Horizon was time chartered on 30 May 2009 to Oldendorff Carriers Gmbh & Co. KG Lübeck for a period of minimum six to about eight months (about meaning plus/minus 15 days) at a gross rate of US$15,600.
The M/V Hellenic Sea was time chartered for minimum four to about six months commencing on 11 June 2009 to Swiss Marine Corporation Ltd at a gross rate of US$16,500 per day.
The M/V Hellenic Sky was time chartered for minimum thirteen to about sixteen months commencing on 22 June 2009 to Cargill at a gross rate of US$18,000 per day.
Taking into consideration the entire fleet of 6 vessels, the estimated time charter coverage for the remaining of 2009 is 83% and 59% for the whole of 2010.
Fleet Operating Data
|
Six months ended 30 June 2009 |
Six months ended 30 June 2008 |
|
|
Fleet data: |
||
|
Average number of vessels |
6 |
4.8 |
|
Number of vessels at period end |
6 |
6 |
|
Total dwt at period end |
372,761 |
372,761 |
|
Ownership days (1) |
1,086 |
875 |
|
Available days (2) |
1,050 |
849 |
|
Operating days (3) |
991 |
836 |
|
Fleet utilization (4) |
94.4% |
98.5% |
|
Average daily results (in US$): |
||
|
Time Charter Equivalent (TCE) rate (5) |
$28,297 |
$38,800 |
|
Average daily vessel operating expenses (6) |
$4,776 |
$5,136 |
Ownership days are the cumulative days in a period during which each vessel is owned by the Company
Available days are ownership days less the days that the vessels are at scheduled off-hire for maintenance or vessel repositioning
Operating days are the available days less all unforeseen off-hires
Fleet utilization is measured by dividing the vessels' operating days by the vessels' available days
TCE is defined as vessels' total revenues less voyage expenses divided by the number of the available days for the period
Average daily vessel operating expenses is defined as vessel operating expenses divided by ownership days.
Fleet Deployment
|
Vessel |
Type |
Year Built |
Yard |
Carrying capacity (dwt) |
Charter Type |
T/C Expiration date EARLIEST |
Daily Charter Rate US$ (Gross) |
|
M/V Hellenic Breeze |
Panamax |
1993 |
Tsuneishi Shipbuilding, Japan |
69,601 |
T/C |
31/12/2010 |
24,000 |
|
M/V Hellenic Sky |
Panamax |
1994 |
Sasebo Heavy Industries, Japan |
68,591 |
T/C |
22/07/2010 |
18,000 |
|
M/V Hellenic Sea |
Panamax |
1991 |
Jiangnan Shipyard, China |
65,434 |
T/C |
11/10/2009 |
16,500 |
|
M/V Hellenic Wind |
Panamax |
1997 |
Tsuneishi, Shipbuidling, Japan |
74,000 |
T/C |
14/05/2011 |
54,000 |
|
M/V Hellenic Horizon |
Handymax |
1995 |
Halla Engineering & Heavy Industries, Korea |
44,809 |
T/C |
30/11/2009 |
15,600 |
|
M/V Konstantinos D |
Supramax |
2000 |
Mitsui Engineering & Shipbuilding, Japan |
50,326 |
T/C |
25/01/2011 |
35,000 |
Subsequent Events - Dry-dockings/repairs
The M/V Hellenic Breeze was dry docked in China from 15 July until 29 July 2009 and completed its Intermediate Survey at a cost within budget. Her next scheduled dry-docking will be due in early 2012.
On 23 July 2009, the M/V Hellenic Wind commenced her Special Survey, which is expected to be completed by early September 2009. The M/V Hellenic Wind was delivered to the fleet in May 2008 and this is the first Special Survey under the management of Hellenic Shipmanagement. As announced at the time of the acquisition in December 2007, extensive upgrading work was required, which accounts for the longer time the vessel will stay in dry dock and the higher budgeted figure.
On 2 July 2009, damage occurred to the intermediate shaft bearing of the M/V Hellenic Sea and the vessel in laden condition was towed to Vancouver to undergo necessary repairs. Repairs were completed and the vessel was redelivered to her charterers on 8 August 2009 in accordance with the currently effective time charter agreement. The vessel-owning company, through its insurance policy, is covered for the cost of the repairs and the related expenses above the applicable deductible (US$125).
Conference Call and Webcast Details
The Company's management has scheduled a conference call and webcast on 3 September, 2009 at 3.00pm (BST), 5.00pm (Athens) and 10.00am (EDT) to discuss the 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 10 September, 2009 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.
ENDS -
For further information please contact:
Hellenic Carriers Limited
Fotini Karamanlis, Chief Executive Officer
E-mail: [email protected] +30 210 455 8900
Jefferies International Limited
Anne Dovigen +44 (0) 20 7029 8000
Schuyler Evans
Capital Link
Ramnique Grewal +1 212 661 7566 (New York)
Annie Evangeli +44 (0) 20 3206 1320 (London)
E-mail: [email protected]
Further Information - Notes to Editors
About Hellenic Carriers Limited
Hellenic Carriers Limited manages through Hellenic Shipmanagement Corp. a fleet of dry bulk vessels that transport iron ore, coal, grain, steel products, cement, alumina, and other dry bulk cargoes worldwide. Currently the fleet consists of six vessels, comprising four Panamaxes, one Supramax and one Handymax with an aggregate carrying capacity of 372,761 dwt.
INTERIM CONSOLIDATED INCOME STATEMENT
For the six months ended 30 June 2009
(Expressed in thousands of U.S. Dollars, except share and per share data)
|
30 June |
||||
|
2009 |
2008 |
|||
|
unaudited |
||||
|
U.S.$'000 |
U.S.$'000 |
|||
| Revenue |
32,361 |
34,086 |
||
|
Expenses and other income |
||||
|
Voyage expenses |
(2,660) |
(1,140) |
||
|
Vessel operating expenses |
(5,187) |
(4,494) |
||
|
Management fees - related party |
(711) |
(552) |
||
|
Depreciation |
(6,681) |
(4,539) |
||
|
Depreciation of dry-docking costs |
(444) |
(441) |
||
|
General and administrative expenses |
(900) |
(1,097) |
||
|
Allowance for doubtful debt |
(446) |
- |
||
|
Operating profit |
15,332 |
21,823 |
||
| Finance expense |
(3,392) |
(2,442) |
||
|
Finance income |
536 |
781 |
||
|
Foreign currency gain, net |
48 |
19 |
||
|
(2,808) |
(1,642) |
|||
| Profit for the period |
12,524 |
20,181 |
||
| Earnings per share (U.S.$): |
||||
|
Basic and diluted EPS for the period |
0.27 |
0.44 |
||
|
Weighted average number of shares |
45,616,851 |
45,616,851 |
||
INTERIM CONSOLIDATED STATEMENT OF FINANCIAL POSITION
At 30 June 2009
(Expressed in thousands of U.S. Dollars)
|
30 June |
31 December |
|||
|
2009 |
2008 |
|||
|
|
unaudited |
audited |
||
|
U.S.$'000 |
U.S.$'000 |
|||
|
ASSETS |
||||
|
Non-current assets |
||||
|
Vessels, net |
178,557 |
185,063 |
||
|
Office furniture and equipment |
13 |
15 |
||
|
|
178,570 |
185,078 |
||
|
Current assets |
||||
|
Inventories |
514 |
492 |
||
|
Trade receivables |
353 |
312 |
||
|
Due from related parties |
2,494 |
2,215 |
||
|
Prepaid expenses and other assets |
675 |
433 |
||
|
Restricted cash |
207 |
638 |
||
|
Cash and cash equivalents |
63,932 |
53,982 |
||
|
|
68,175 |
58,072 |
||
|
TOTAL ASSETS |
246,745 |
243,150 |
||
|
|
||||
|
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 |
(4,393) |
(6,596) |
||
|
Retained earnings |
35,057 |
23,986 |
||
|
Total equity |
95,891 |
82,617 |
||
|
|
||||
|
Non-current liabilities |
||||
|
Long-term debt |
132,926 |
126,562 |
||
|
Other non-current liabilities |
4,347 |
6,596 |
||
|
|
137,273 |
133,158 |
||
|
Current liabilities |
||||
|
Trade payables |
1,363 |
1,427 |
||
|
Current portion of long-term debt |
7,599 |
20,959 |
||
|
Accrued liabilities and other payables |
2,016 |
1,559 |
||
|
Deferred revenue |
2,603 |
3,430 |
||
|
|
13,581 |
27,375 |
||
|
Total Liabilities |
150,854 |
160,533 |
||
|
TOTAL EQUITY AND LIABILITIES |
|
246,745 |
|
243,150 |
INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS
For the six months ended 30 June 2009
(Expressed in thousands of U.S. Dollars)
|
30 June |
||||
|
|
2009 |
2008 |
||
|
U.S.$'000 |
U.S.$'000 |
|||
|
Operating activities |
||||
|
Profit for the period |
12,524 |
20,181 |
||
|
Adjustments to reconcile profit to net cash flows: |
||||
|
Depreciation |
6,681 |
4,539 |
||
|
Depreciation of dry-docking costs |
444 |
441 |
||
|
Amortisation of deferred income |
- |
(341) |
||
|
Finance expense |
3,392 |
2,442 |
||
|
Finance income |
(536) |
(781) |
||
|
|
22,505 |
26,481 |
||
|
Increase in inventories |
(22) |
(128) |
||
|
Increase in trade receivables, prepaid expenses and other assets |
(283) |
(816) |
||
|
(Increase) / Decrease in due from related parties |
(279) |
40 |
||
|
Increase in trade payables, accrued liabilities and other payables |
170 |
1,069 |
||
|
(Decrease) / Increase in deferred revenue |
(827) |
1,511 |
||
|
Decrease in due to related parties |
- |
(271) |
||
|
Net cash flows from operating activities |
21,264 |
27,886 |
||
|
|
||||
|
Investing activities |
||||
|
Acquisition/ improvement of vessels |
- |
(118,665) |
||
|
Dry-docking costs |
(617) |
(1,637) |
||
|
Interest received |
536 |
781 |
||
|
Net cash flows used in investing activities |
(81) |
(119,521) |
||
|
|
||||
|
Financing activities |
||||
|
Proceeds from issue of long -term debt |
- |
109,391 |
||
|
Repayment of long-term debt |
(6,800) |
(18,050) |
||
|
Restricted cash |
431 |
521 |
||
|
Interest paid |
(3,411) |
(2,661) |
||
|
Dividends paid |
|
(1,453) |
|
(1,011) |
|
Net cash flows (used in) / provided by financing activities |
(11,233) |
88,190 |
||
|
Net increase / (decrease) in cash and cash equivalents |
9,950 |
(3,445) |
||
|
Cash and cash equivalents at 1 January |
53,982 |
47,245 |
||
|
Cash and cash equivalents at 30 June |
63,932 |
43,800 |
||
Related Shares:
HCL.L