2013 Interim Unaudited Results

HELLENIC CARRIERS LIMITED

H1 2013 Financial Results

Press Release 30 September 2013

HELLENIC CARRIERS REPORTS 2013 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 wholly owned subsidiaries a fleet of five 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 2013.

The Company's management team will be holding a conference call and webcast on Monday 7 October 2013, at 1pm (London), 3pm (Athens) and 8am (New York) to discuss the results.

H1 2013 FINANCIAL HIGHLIGHTS 

Þ Revenue US$3.9 million (H1 2012: US$8.9 million)

Þ EBITDA[1] negative US$0.5 million (H1 2012: US$0.5 million EBITDA positive)

Þ Operating Loss US$4.6 million before non-cash items (H1 2012: US$4.8 million)

Þ Net Loss US$6.8 million (H1 2012: US$9.2 million which included non-cash impairment charge US$4.1 million and non-cash gain on sale of vessel US$2.3 million)

Þ Gearing ratio[2] at 36.9% as of 30 June 2013 (31.9% as of 31 December 2012)

Þ Total cash including restricted cash US$40.3 million as of 30 June 2013 (US$47.7 million as of 31 December 2012)

Þ Reduction of Gross debt from US$82.3 million on 31 December 2012 to US$80.0 million on 30 June 2013 resulting in a net debt position of US$39.8 million from US$34.6 million on 31 December 2012

H1 2013 OPERATIONAL HIGHLIGHTS 

Þ Operation of 3.0 vessels on average compared to 4.8 vessels in H1 2012

Þ Time Charter Equivalent rate of US$7,038 (H1 2012: US$8,338)

SUBSEQUENT TRANSACTIONS 

Þ Delivery of twonewbuildingsister Kamsarmax vessels at US$26.28 million each

Þ Signing of a MOA for the acquisition of a 2004-built Supramax vessel at US$16.16 million

cash equivalents to net debt and stockholders’ equity)

Management Commentary

Our aim during 2012 was to steer through a very challenging market and ensure that our Company benefits from the eventual market turnaround.

We believe that the time of a turnaround is now approaching. We have already witnessed the first signs of recovery and, although these signs have been more evident in the cape size sector, we know that the sub capesize segments will also follow the trend.

The upward trend may not be straight line and we may continue to experience seasonal volatility. Furthermore, any rapid improvement in rates may be followed by a downward correction. However, overall we consider that the lows experienced in 2012 and the first half of 2013 are now behind us.

The steps taken in the last two years position our Company advantageously in the context of a gradually improving freight environment. We sold two of the older vessels and ensured that the sale proceeds would be used for fleet renewal. This is now materialising and in times of restricted sources of finance for shipping, we have managed to replace the older vessels with modern ones. The incorporation of new vessels in two of the existing loan facilities has resulted in the amelioration of repayment terms and the extension of their maturities and will therefore help towards cash preservation and possible further investments.

We have also taken delivery of the two new building Kamsarmax vessels (which were ordered back in 2010) at an adjusted price level and during a period of improved freight rates. These two brand new vessels will improve the fleet profile and enhance the earnings generation capacity of the Company.

In times of raising uncertainty in other sectors of the economy, shipping offers a solid investment proposal backed by hard assets as well as the growing trade amongst the mature and the developing economies. With an expanded, renewed fleet, which we avoided to commit for the longer run at low freight levels we face the near and medium term future with moderate yet increased optimism.

Fleet Developments

For the six months ended 30 June 2013, the Company operated through its subsidiaries a fleet of 3.0 vessels on average, compared to 4.8 vessels for the six months ended 30 June 2012. Following the sale of two older units in 2012, the operating fleet in H1 2013 includes one Panamax, one Supramax and one Handymax with an aggregate carrying capacity of 169,116 dwt and a weighted average age of 16.0 years as of 30 June 2013.

The two sister Kamsarmax vessels on order at Zhejiang Ouhua Shipbuilding Co. Ltd., in China were delivered subsequent to the reporting date, in August and September 2013.

In particular, M/V Odysseas, a 81,662 dwt Kamsarmax vessel was delivered on 12 August 2013 at an adjusted contract price of US$26.28 million. The respective order was placed in June 2010 at a contract price of US$34.2 million for a scheduled delivery in January 2013.

M/V Konstantinos II, the second Kamsarmax vessel, was delivered on 25 September 2013 at the adjusted contract price of US$26.28 million. The order for this vessel was placed in June 2010 at a contract price of US$34.2 million for a scheduled delivery in March 2013.

Fleet details as on the date of the announcement:

Following the delivery of the two sister Kamsarmax vessels, the Company through its subsidiaries owns and trades a fleet of five dry bulk vessels with an aggregate carrying capacity of 332,476 dwt and a weighted average age of 9.8 years.

In August 2013, one of the Company's subsidiaries agreed to purchase from an unaffiliated third party the M/V Ocean Alliance, a geared 52,388 dwt Supramax vessel built at Tsuneishi Shipbuilding Corporation, Japan in 2004, at the price of US$16.16 million in cash. The vessel is expected to be delivered in Q4 2013.

In early August, the vessels' management agreements entered into with Hellenic Shipmanagement Corp., and the respective sub-management agreements with Mantinia Shipping Co. S.A. were terminated (at no cost / without compensation) and Hellenic Carriers Corporation S.A., ("HC Corp"), a related company ultimately controlled by the controlling shareholders of Hellenic, was appointed as manager of the vessels. HC Corp charges for the full management of the vessels US$30,000 per month per vessel as well as 1% brokerage commission on revenue earned and 1% on each Sale & Purchase transaction concluded. We expect that the transfer of the full management of the vessels to HC Corp will have neutral effect to the net result of the Company and its subsidiaries but will streamline the management procedures and achieve economies of scale.

Debt / Financing Activities

A loan facility secured in March 2011 from a major European lender was used for the financing of M/V Odysseas. The amount of US$17.1 million, representing 65% of the adjusted contract price of the vessel, was drawn down upon delivery in i) settlement of the lastinstalmentin the amount of US$12.7 million payable to the yard under the amended shipbuilding contract and ii) replenishment of part of the Company's equity contribution paid in 2010 from the Company's cash reserves. The loan is payable in 12 semi-annualinstalmentsof US$0.46 million and a balloon instalment in the amount of US$11.6 million falling due together with the final repayment instalment in August 2019.

Following the sale of M/V Hellenic Sky and M/V Hellenic Sea in 2012, their respective lenders agreed to transfer the sale proceeds as debt finance towards new acquisitions replacing the sold vessels, instead of repayment of the respective loan facilities. Consequently the proceeds from the sale of the M/V Hellenic Sky and interest accrued thereon (amounting in total to US$10.4 million) together with new debt of US$2.2 million were used to finance the second Kamsarmax vessel, M/V Konstantinos II. As a result of the incorporation of the M/V Konstantinos II into this loan facility (together with the M/V Hellenic Horizon) the maturity has been further extended to May 2023 (from an initial maturity in May 2015). Furthermore the debt repayment schedule has been adjusted and the current outstanding loan balance is repayable in 9 quarterly instalments of US$0.22 million, followed by 30 quarterly instalments of US$0.43 million and a final balloon in the amount of US$12.34 million falling due together with the lastinstalmentin May 2023. An interim balloon in the amount of US$4.8 million is payable in May 2018 and an earnings recapture clause has been agreed providing that part of the excess earnings (meaning part of EBITDA after settlement debt service) generated by the vessels will be paid to the Bank.

Furthermore, the proceeds from the sale of M/V Hellenic Sea and interest accrued thereon (in total amounting to US$5.3 million) together with new debt of US$2.5 million shall be used towards the financing of M/V Ocean Alliance, the 2004 built Supramax vessel the acquisition of which was agreed in August 2013. Following the incorporation of the newly acquired vessel into the respective loan facility (together with M/V Hellenic Wind and M/V Konstantinos D) the outstanding loan balance is repayable in 9 instalments of US$0.42 million, followed by 4 instalments of US$0.70 million, 4 instalments of US$0.75 million, 8 instalments of US$1.12 million and 2 instalments of US$2.0 million. Interim balloon instalments in the amount of US$1.4 million, US$1.25 million and US$1.25 million fall due together with the last instalment payable in November of each of the years from 2017 until 2020, respectively, and a final balloon instalment in the amount of US$26.0 million is payable in May 2020. An earnings recapture clause has been agreed based on which part of any excess earnings (meaning part of EBITDA after settlement of debt service) generated by the vessels will be paid to the Bank.

Fleet Deployment

The deterioration of the dry bulk freight market continued during H1 2013 during which lower averages were recorded compared to H1 2012. This was mainly due to the cumulative increase in tonnage supply over the recent years coupled with weak economic growth of the OECD countries. However, throughout the period, seaborne trade demand has continued to grow supported by the need for raw materials from the developing countries. 

In this environment, the chartering strategy focused on combining employing the vessels either in the spot market or under short term period fixtures avoiding longer term commitments at low levels.

Taking advantage of the mild market upswings during Q4 2012 and Q2 2012 the vessels were fixed under medium term time charters. In particular, the M/V Hellenic Wind was employed from October 2012 under a time charter agreement at a gross daily rate of US$7,350. This charter was terminated in June 2013. The M/V Konstantinos D was employed from March 2013 until August 2013 under a period time charter agreement at a gross daily rate of US$8,900. The M/V Hellenic Horizon was employed from January 2013 until July 2013 under a time charter agreement at a gross daily rate of US$8,100. For the remainder of H1 2013 and until today the vessels are trading in the spot market for the performance of single or consecutive laden legs or under short term time charter agreements. 

In light of the recent meaningful improvement of the freight market, our strategy to avoid long term employment at depressed levels was proven correct, since both the new vessels added to the fleet and the existing vessels may well benefit from the increased freight levels.

H1 2013 Results

For the six months ended 30 June 2013, Hellenic reported total revenues of US$3.9 million compared to US$8.9 million for the same period of 2012. The fleet utilisation during the period was reported at 98.6% compared to 90.8% in H1 2012. The decrease in revenues is mainly attributed to the reduction in the number of vessels operated during the period (following the sale of the M/V Hellenic Sky in May 2012 and M/V Hellenic Sea in August 2012), in conjunction with the prolonged depression of the dry bulk freight rates.

Operating loss before non-cash items amounted to US$4.6 million for the period ended 30 June 2013 compared to an operating loss of US$4.8 million for the same period of 2012.

The net loss for the period ended 30 June 2013 amounted to US$6.8 million representing a loss per share of US$0.15 calculated on 45,616,851 weighted average number of shares, whereas, the net loss for the period ended 30 June 2012 amounted to US$9.2 million representing a US$0.20 loss per share (the net loss as of June 2012 included non-cash impairment charge and non-cash gain on sale of vessel in the amount of US$4.1 and US$2.3 million, respectively).

During the six months ended 2013 the Company, through its subsidiaries, operated 3 vessels which earned on average US$7,038 per day compared to 4.8 vessels and average earnings of US$8,338 per day in H1 2012.

Earnings before Tax, Interest, Depreciation andAmortisation(EBITDA) was reported negative at US$0.5 million for the six months ended 30 June 2013 compared to US$0.5 million positive for the same period of 2012.

As a result of the reduction in the number of vessels operated for the six months ended 30 June 2013, vessel operating expenses dropped by US$1.8 million to a total of US$2.9 million. Daily operating expenses decreased to US$5,260 from US$5,397. This decrease is partly attributed to the disposal of the older vessels.

Selected Financial Data:

  (1) EBITDA has been calculated as follows: Operating profit + Depreciation + Depreciation of dry-docking costs + Impairment

charge - Gain on sale of vessel

Fleet Operating Data:

(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) 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.

H1 2013 Financial Position / Capitalisation

Debt as of 30 June 2013 amounted to US$80.0 million compared to US$82.3 million as of 31 December 2012.

As of 30 June 2013, debt (debt, net of deferred financing fees) to total capitalisation (debt and stockholders' equity) amounted to 54% compared to 52.7% as of 31 December 2012. Net debt (debt less cash and cash equivalents) to total capitalisation amounted to 36.9% on 30 June 2013 compared to 31.9% on 31 December 2012.

Total cash, including restricted cash amounted to US$40.3 million as of 30 June 2013 and US$47.7 million as of 31 December 2012. Restricted cash as of 30 June 2013 amounted to US$19.4 million, slightly increased from 31 December 2012 due to interest earned on pledged deposits. The amount of US$10.4 million was transferred as debt towards the acquisition of M/V Konstantinos II as stated above and the amount of US$5.3 million is expected to be transferred as debt towards the acquisition of a 2004 built Supramax (refer to Debt / Financing Activities above).

Subsequent Events

Subsequently to 30 June 2013, the Company and its subsidiaries took delivery of the two sister Kamsarmax vessels on order since June 2010 and entered into an agreement for the acquisition of a 2004 built Supramax vessel. For the details of the transactions refer to Fleet Developments and Debt/Financing Activities.

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

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 17 October 2013 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

Elpida Kyriakopoulou, Chief Financial Officer

E-mail: [email protected] +30 210 455 8900

Panmure Gordon (UK) Limited

Andrew Godber +44 (0) 20 7886 2500

Capital Link 

Nicolas Bornozis +1 212 661 7566 (New York)

Ioanna Messini +44 (0) 20 3206 1320 (London)

E-mail: [email protected]

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 five vessels, comprising one Panamax, one Supramax, one Handymax and two sister Kamsarmax vessels with an aggregate carrying capacity of 332,476 dwt and a weighted average age of 9.8 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 2013

(Amounts expressed in thousands of U.S. Dollars, except share and per share data)

INTERIM CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOMEFor the six months ended 30 June 2013

(Amounts expressed in thousands of U.S. Dollars)

INTERIM CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As at 30 June 2013

(Amounts expressed in thousands of U.S. Dollars)

INTERIM CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the six months ended 30 June 2013

(Amounts expressed in thousands of U.S. Dollars, except share and per share data)

INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS

For the six months ended 30 June 2013

 (Amounts expressed in thousands of U.S. Dollars)