Annual Financial Report

2013 Financial Results

Press Release 24 February 2014

HELLENIC CARRIERS REPORTS PRELIMINARY RESULTS FOR THE

YEAR ENDED 31 DECEMBER 2013

Hellenic Carriers Limited, ("Hellenic" or the "Company") (AIM: HCL), owns and trades a fleet of dry bulk vessels that transport iron ore, coal, grain, steel products, cement, alumina, and other dry bulk cargoes worldwide. The Company is pleased to report today its Preliminary Results for the year ended 31 December 2013.

The Company's management team will be holding a conference call and webcast on Monday 24 February 2014, at 1pm (London), 3pm (Athens) and 8am (New York) to discuss the results. Dial in details are included below.

2013 HIGHLIGHTS

FINANCIAL

Þ Revenue US$ 10.9 million (2012: US$ 13.2 million)

Þ EBITDA1 positive US$ 0.3 million (2012: US$ 0.2 million EBITDA negative)

Þ Operating loss US$ 9.2 million (2012: US$ 15.9 million or US$ 9.4 million Operating loss before non-cash items)

Þ Net loss US$ 14.2 million (2012: Net loss US$ 20.7 million or US$ 14.2 million loss before non-cash items)

Þ Gearing ratio2 at 53.4% as of 31 December 2013 (31.9% as of 31 December 2012)

Þ Total cash including restricted cash US$ 27.7 million as of 31 December 2013 (US$ 47.7 million as of 31 December 2012)

Þ Gross debt US$ 97.3 million as of 31 December 2013 from US$ 82.3 million as of 31 December 2012 resulting in a net debt position of US$ 69.6 million from US$ 34.6 million on 31 December 2012

OPERATIONAL

Þ Delivery of the two newbuilding Kamsarmax vessels M/V Odysseas and M/V Konstantinos II in August and September 2013 respectively

Þ Operation of a fleet of 3.7 vessels on average for the full year 2013 compared to 4.0 vessels in 2012

Þ Time Charter Equivalent ("TCE") rate of US$ 7,614 (2012: US$ 7,414)

Þ Daily Operating expenses reduction to US$ 5,088 from US$ 5,234 (a decrease of 2.8%)

Þ Agreement reached in August 2013 for the acquisition of M/V Pistis, 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

SUBSEQUENT 

Þ Delivery of the 2004-built Supramax M/V Pistis on 7 January 2014

Management Commentary

2013 was a transformative year for Hellenic Carriers. Within a year, the fleet grew from three to six vessels and its profile improved in terms of average age and overall carrying capacity. Importantly, the new vessels were acquired at levels which are well below the 10-year average prices for similar assets, and have come at a time when the signs of recovery are apparent. We are confident that these acquisitions are accretive, and will yield significant profit generation capacity going forward. Furthermore, as we avoided long term employment commitments at previously prevailing low rates, the vessels can fully capitalize upon the gradually improving freight market.

After almost three years of a shipping crisis which led rates close to historical lows, we believe that the supply/demand fundamentals are now turning positive. The crisis was not caused by lackluster demand, on the contrary demand continued to steadily grow, but rather by the oversupply of ships. The unprecedented numbers of new vessels ordered during the peak of the last shipping cycle have now been significantly absorbed, while many older vessels have been scrapped. Newbuilding orders are continuing to grow, but not, as things stand today, at levels that would threaten industry fundamentals. Dry bulk commodity demand, both from the developing world, as well as from mature economies continues to strengthen. Considering all these factors together, we believe that 2014 will be the turning point towards a recovery cycle.

It is not surprising, therefore, that investor interest for shipping has resumed. After all, shipping offers a solid investment proposal backed by hard assets at prices which are attractive, as well as the growing trade amongst the mature and the developing economies. However, shipping remains a highly cyclical market and timing plays a crucial role. The recent downturn is an example of the importance of making the right employment and investment decisions at the right time.

Hellenic's track record proves the point: when the market was at or close to its peak, long term charter contracts were agreed which helped build significant cash reserves. Then as the market deteriorated, older assets were disposed of and through these sales funding for the new acquisitions was secured. As a result, the company managed to overcome challenging conditions and to emerge stronger.

Today with a larger, younger and uncommitted fleet Hellenic, a pure dry bulk shipping company, is well positioned to benefit from the positive trend and shall consider further timely and accretive acquisitions, which will continue to enhance shareholder value.

Vessels' Development

Details of the vessels as of the date of this announcement:

(1) M/V Pistis was delivered on 7 January 2014

In H2 2013, two sister Kamsarmax vessels were added to the operating fleet increasing the carrying capacity to 332,476 dwt. The two Kamsarmaxes were ordered at Zhejiang Ouhua Shipbuilding Co. Ltd., China in June 2010 at a contract price of US$ 34.2 million each for a scheduled delivery in H1 2013. In H1 2013 the contract price of the vessels was renegotiated and reduced to US$ 26.3 million each and their delivery dates extended. Consequently, M/V Odysseas, a 81,662 dwt Kamsarmax vessel was delivered on 12 August 2013 and M/V Konstantinos II, a 81,698 dwt Kamsarmax vessel, was delivered on 25 September 2013.

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 was delivered on 7 January 2014 and was renamed to Pistis.

As of the date of this announcement, the Company owns and trades, through its wholly owned subsidiaries, a fleet of six dry bulk carriers with total carrying capacity of 384,864 and an average age of 10.1 years. Over the last fourteen months the carrying capacity has increased by 127.6% (from 169,116 dwt to 384,864 dwt) and the fleet average age has dropped from 15.5 years to 10.1 years.

Vessels' Employment

From the beginning of 2012 until the end of H1 2013 the dry bulk freight market dropped to its lowest levels of the last 27 years, since inception of the Baltic Dry Index (BDI). During this period the Company decided to avoid committing the vessels at low hire rates and focused on a combination of employment in the spot market and short term period fixtures.

In H2 2013 and especially during Q4 2013 the first signs of a market recovery became apparent. The BDI increased by 86% from an average of 842 points in H1 to 1,564 points in H2 2013. The sharpest rise was witnessed in the cape size sector; however the sub cape size segments also benefited from the improvement in the freight market. The chartering strategy during Q4 2013 remained the same; employment in the spot market or short period fixtures.

M/V Konstantinos II is currently employed under a time charter agreement for a period of about 6 to 8 months at a daily floating hire rate linked to the average of the four routes of the Baltic Exchange Panamax Index (BPI) plus a 12% premium and with a guaranteed minimum floor rate of US$ 9,000 gross. The charter commenced on 19 November 2013, with the earliest expiration date on 4 May 2014 and the latest on 3 August 2014. The average gross daily rate from 19 November 2013 until the date of this announcement is US$ 14,328.

M/V Odysseas is currently performing a time charter trip with an estimated duration of approximately 90 days at a gross daily rate of US$ 13,900. This trip commenced on 11 December 2013 and is expected to expire on 10 March 2014.

M/V Hellenic Wind is currently performing a time charter trip with an estimated duration of 65 days at a gross daily rate of US$ 11,100. The trip commenced on 19 December and is expected to expire at the earliest on 26 February 2014.

M/V Konstantinos D is currently performing a time charter trip with an estimated duration of 25 days at a gross daily rate of US$ 14,000. The trip commenced on 2 February and is expected to expire at the earliest on 26 February 2014.

M/V Hellenic Horizon is currently performing a time charter trip with an estimated duration of 20 days at a gross daily rate of US$ 6,000 plus a ballast bonus of US$ 60,000. This charter commenced on 31 January 2014 and is expected to expire on about 22 February 2014.

M/V Pistis is currently under repairs.

The fleet deployment profile as of the date of this announcement is outlined below:

(1) The earliest charter expiration date represents the first day on which the Charterer may redeliver the vessel to the ship owning company.

Full year 2013 Results

Operating and Financial highlights

The following tables summarise the operating and financial results for full year 2013.

(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.

(1) EBITDA has been calculated as follows: Operating profit + Depreciation + Depreciation of dry-docking costs + Impairment charge - Gain on sale of vessels - Other operating income

During 2013 the Company, through its subsidiaries, operated 3.7 vessels which earned on average US$ 7,614 per day compared to 4.0 vessels and average earnings of US$ 7,414 per day in 2012, an increase of 2.7%.

For the year ended 31 December 2013, Hellenic reported total revenues of US$ 10.9 million compared to US$ 13.2 million for the same period of 2012, a decrease of US$ 2.3 million. The decrease in revenues is attributed to the reduction in the number of vessels operated during the period, in conjunction with the prolonged weakness of the dry bulk freight rates. The fleet utilisation during the period was reported at 95.6% compared to 91.6% in the same period of 2012 as result of the decrease in vessels' ballast days for repositioning purposes.

Voyage expenses decreased by 64.5% to US$ 1.1 million compared to US$ 3.1 million for the same period of 2012. The decrease in voyage expenses is mainly attributable to the increased fleet utilization during the year 2013 which translates to reduced days in ballast and therefore reduced fuel oil expenses.

Vessel operating expenses dropped by US$ 0.9 million to a total of US$ 6.8 million for the year ended 31 December 2013. The decrease is mainly due to cost control and fleet renewal after delivery of the new building Kamsarmax vessels in Q3 and Q4 2013. The daily operating expenses for the year ended 31 December 2013 were reported at US$ 5,088 from US$ 5,234 for the same period of 2012, a decrease of 2.8% demonstrating the effect of an efficiently run younger fleet.

The Company's general and administrative expenses for the year ended 31 December 2013 amounted to US$ 1.6 million compared to US$ 1.5 million reported for the same period of 2012.

Earnings before Tax, Interest, Depreciation and Amortisation (EBITDA) was reported positive at US$ 0.3 million for the year ended 31 December 2013 compared to negative US$ 0.2 million for the same period in 2012.

Operating loss amounted to US$ 9.2 million for the year ended 31 December 2013 compared to US$ 15.9 million for the same period of 2012. For the year ended 31 December 2012, the operating loss figure included non-cash impairment charge of US$ 8.6 million and non-cash gain resulting from the sale of M/V Hellenic Sky and M/V Hellenic Sea in the amount of US$ 2.1 million.

The total finance expense comprising of i) interest payable on bank debt, ii) amortization of deferred loan fees and iii) other finance costs, was reported at US$ 5.4 million for the year ended 31 December 2013, in line with the amount reported for the same period of 2012. Interest payable on bank debt decreased considerably by US$ 0.9 million due to the termination of the swap agreements in August 2013, but an almost equal increase was realized in amortization of deferred loan fees due to the fact that borrowing costs and commitment fees paid under a loan commitment were written off upon its full cancellation in September 2013.

The weighted average interest rate for the year ended 31 December 2013 was 4.90% decreasing considerably from 5.95% reported in 2012.

Net loss for the year ended 31 December 2013 amounted to US$ 14.2 million or US$ 0.31 basic loss per share calculated on 45,616,851 weighted average number of shares. Net loss for the year ended 31 December 2012 amounted US$ 20.7 million or US$ 0.45 basic loss per share calculated on 45,616,851 weighted average number of shares.

Financial Position and Cash Flow highlights

(1) Net Debt has been calculated as follows: Total Bank Debt - Cash and Cash equivalents

including restricted cash

Debt / Financing Activities & Capitalisation

As of 31 December 2013, total Bank Debt was reported at US$ 97.3 million compared to US$ 82.3 million at 31 December 2012.

The amounts were analysed as follows:

Loan a: Further to the sale of the vessel M/V Hellenic Sky in May 2012 the proceeds in the amount of US$ 10.3 million (included in restricted cash at 31 December 2012) were transferred as bank financing towards the acquisition cost of the Kamsarmax M/V Konstantinos II coupled with new debt in the amount of US$ 2.2 million drawn upon the vessel's delivery. The loan tenor was extended, the new maturity date being 8 May 2023. The outstanding balance which, as of 31 December 2013 amounted to US$ 31.77 million (inclusive of the new debt of US$ 2.2 million as described above) is repayable in eight quarterly instalments of US$ 0.22 million each, followed by thirty quarterly instalments of US$ 0.43 million. The first instalment was due on 10 February 2014 and the final instalment is due on 8 May 2023, along with a balloon payment of US$ 12.30 million. An interim balloon in the amount US$ 4.81 million is payable in February 2018.

Loan b: Further to the sale of the vessel M/V Hellenic Sea in August 2012 the proceeds in the amount of US$ 5.4 million together with additional debt of US$ 2.5 million were transferred as bank financing towards the acquisition of M/V Pistis, which was delivered on 7 January 2014. The maturity of the loan has now been extended to 7 May 2020. The outstanding balance as of 31 December 2013 amounted to US$ 49.48 million and along with the new debt of US$ 2.5 million drawn down in January 2014 (as described above), is repayable in eight quarterly instalments of US$ 0.41 million each, followed by four quarterly instalments of US$ 0.7 million each, four quarterly instalments of US$ 0.75 million each, an interim balloon of US$ 1.4 million payable in November 2017, four quarterly instalments of US$ 1.12 million each, a second interim balloon of US$ 1.25 million payable in November 2018, four quarterly instalments of US$ 1.12 million each, a third interim balloon of US$ 1.25 million payable in November 2019, and two quarterly instalments of US$ 2.0 million, the last one being payable on maturity 7 May 2020 along with a balloon payment of US$ 26.04 million.

Loan c: On 30 March 2011, Ithaca Maritime Ltd, the owner of the Kamsarmax vessel under construction M/V Odysseas, entered into a term-loan facility agreement for the financing of up to 65% of the vessel's market value upon delivery. Further to the reduction in the vessel's contract price (at US$ 26.28 million from US$ 34.20 million), the amount of US$ 17.08 million was drawn down upon the vessel's delivery in August 2013. The loan outstanding balance as of 31 December 2013 is repayable in twelve semi-annual instalments of US$ 0.46 million each. The first instalment was due on 10 February 2014 and the final instalment is due on 9 August 2019, along with a balloon payment of US$ 11.56 million.

An earnings recapture clause has been agreed under loan facilities a and b based on which part of any excess earnings generated by the vessels after payment of their debt service (principal and interest) will be paid to the lending banks. The payment due under this clause for the fiscal year 2013 is US$ nil.

The gross debt repayments (without taking into account any payments under the earning recapture clauses as described above) amount to US$ 3.4 million per year for the years 2014 and 2015.

As of 31 December 2013, Hellenic and its subsidiaries are in compliance with debt covenants.

Cash and cash equivalents including restricted cash were reported at US$ 27.7 million compared to US$ 47.7 million at 31 December 2012.

Restricted cash reported at 31 December 2013 amounted to US$ 9.5 million (2012: US$ 19.2 million). This amount consisted of a) US$ 5.3 million being the aggregate of the proceeds from the sale of the vessel Hellenic Sea which were pledged with the vessel's lender for the purpose of being transferred as bank debt towards the acquisition of M/V Pistis in January 2014 and US$ 0.2 million being pledged as minimum cash requirement under one of the loan facility agreements, b) US$ 3.4 million being retained against issuance of a bank guarantee in the amount of US$ 3.1 million and c) US$ 0.6 million being cash held in bank accounts of the vessel owning companies that are retained for the payment of future instalments.

As of 31 December 2013 net debt amounted to US$ 69.6 million compared to US$ 34.6 million as of 31 December 2012. This increase in net debt is attributable to additional debt drawn down upon delivery of the two Kamsarmax vessels in the amount of US$ 19.3 million and utilization of the pledged amount of US$ 10.3 million (included in restricted cash as at 31 December 2012) for the same purpose. Consequently, the gearing ratio being defined as net debt (debt less cash and cash equivalents) to total capitalisation amounted to 53.4% on 31 December 2013 compared to 31.9% on 31 December 2012.

In relation to cash flows used in investing activities, the amount of US$ 29.7 million consists mainly of the following items:

· The amount of US$ 26.8 million paid during the year ended 31 December 2013 in relation to the construction of the two new building Kamsarmax vessels delivered in H2 2013. This amount included the last instalment payable to the yard (US$ 12.7 million per vessel) and other related costs.

· The amount of US$ 1.7 million represents i) dry-docking cost for the M/V Hellenic Wind and M/V Konstantinos D which performed their intermediate surveys at a total cost of US$ 1.3 and ii) the estimated dry-docking component of the new building vessels upon their delivery in H2 2013 amounting to US$ 0.2 million per vessel. (Deferred dry-docking cost for the year ended 31 December 2012 amounted to US$ 1.2 million).

· The amount of US$ 1.6 million being 10% advance payment made in October 2013 for the acquisition of the 2004 built Supramax vessel M/V Pistis under the terms of the MOA dated August 2013.

Subsequent Events

The vessel M/V Pistis, a geared 52,388 dwt Supramax vessel built at Tsuneishi Shipbuilding Corporation, Japan in 2004 was delivered on 7 January 2014 under the terms of the acquisition agreement dated August 2013. The acquisition price of US$ 16.16 million was funded partly by cash reserves of US$ 8.3 million and partly by loan b using the proceeds from the sale of M/V Hellenic Sea in the amount of US$ 5.4 million coupled with new debt in the amount of US$ 2.5 million as described above (loan b). The vessel is currently under repairs.

Arkadia Maritime Corp, the owner of M/V Hellenic Horizon assigned the outstanding net admitted cash rehabilitation claim against Samsum Logix Corp. to unaffiliated third party interests and received a consideration of US$ 1.1 million.

Dividend

In order to reinforce the Company's liquidity and optimise the use of cash when market opportunities arise, the Directors of the Company recommended that dividend payment for the year 2013 be suspended.

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 3 March 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

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)

Christina Daouti +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 six vessels, including 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 10.1 years.

Hellenic Carriers is listed on the AIM of the London Stock Exchange under ticker HCL.

CONSOLIDATED INCOME STATEMENT

For the year ended 31 December 2013

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

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOMEFor the year ended 31 December 2013

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

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As at 31 December 2013

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

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the year ended 31 December 2013

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

CONSOLIDATED STATEMENT OF CASH FLOWS

For the year ended 31 December 2013

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