Annual Financial Report

2012 Financial Results

Press Release 15 March 2013

HELLENIC CARRIERS REPORTS FINAL RESULTS FOR THE

YEAR ENDED 31 DECEMBER 2012

Hellenic Carriers Limited, ("Hellenic" or the "Company") (AIM: HCL), 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. The Company is pleased to report today its Final Results for the year ended 31 December 2012.

2012 FINANCIAL

Þ Revenue US$13.2 million (2011: US$33.2 million)

Þ EBITDA negative US$0.2 million (2011: US$16.9 million EBITDA positive)

Þ Operating Loss US$9.4 million before non-cash items (2011: US$3.6 million Operating Profit)

Þ Net Loss US$14.2 million before non-cash items (2011: US$1.1 million)

Þ Non-cash impairment charge US$8.6 million (2011: US$29.3 million)

Þ Non-cash gain on sale of vessels US$2.1 million (2011: US$ nil)

Þ Net Loss US$20.7 million (2011: US$30.4 million)

Þ Gearing ratio at 31.9% as of 31 December 2012 (30.2% as of 31 December 2011)

Þ Total cash including restricted cash US$47.7 million as of 31 December 2012 (US$48.0 million as of 31 December 2011)

Þ Reduction of Gross debt from US$88.2 million on 31 December 2011 to US$82.3 million on 31 December 2012 resulting in a net debt position of US$34.6 million from US$40.1 million on 31 December 2011

2012 OPERATIONAL

Þ Operation of 4.0 vessels on average compared to 5.0 vessels in 2011

Þ Time Charter Equivalent rate of US$7,414 (2011: US$17,369)

Management Commentary

Our objective during 2012 has been to steer through a very challenging market and position our Company to benefit from the eventual market turnaround.

The decrease in revenues for the year was attributed to the reduced number of vessels in the fleet and the depressed dry bulk freight rates. Although seaborne trade demand continued to grow in 2012, supported mainly by the need for raw materials from the developing countries, oversupply negatively affected rates in all dry bulk segments.

In 2012 the fleet renewal program continued: two of the older Panamax vessels were sold, while the option to use the sale proceeds within 2013 as debt financing towards the acquisition of modern second hand ships was secured from the lenders. The vessels were employed predominantly under short period time charters, avoiding commitment at low rates for the longer term. Tight cost control resulted in a reduction of both the daily vessel operating expenses as well as the general and administrative expenses. Preservation of cash was achieved, following agreements with the existing lenders to reduce the principal installments due in 2012 and 2013 and to extend the maturity of one of the facilities, whilst also extending the maturity of the second facility in case of replacement of one of the ships sold.

Looking ahead, urbanization in the developing economies is an irreversible trend and this translates into continued demand for core raw materials which are the backbone of the dry bulk trade. At the same time, net fleet growth is expected to slow down in 2013 and especially in 2014 as the result of a diminishing order book and high scrapping levels, since about 13% of the global dry bulk fleet is over 20 years of age, whilst the current order book for delivery in 2015 is negligible. Therefore, even though we anticipate a challenging market for 2013, we remain cautiously optimistic on the medium term prospects of our industry.

Since the market downturn in the end of 2008, we have taken steps ensuring that the Company is well prepared to endure difficult market conditions. We expect that such conditions will continue to prevail during 2013. However, thereafter with the bulk of the order book delivered and the growth prospects of the developing countries robust, we envisage an improvement in earnings. Our aim is that at that point in time the Company will be well positioned, with a bigger and more modern fleet, to capitalise on the improved market conditions.

Vessels' Developments

Details of the vessels as at 31 December 2012:

In 2012 two Panamax vessels were sold and an agreement was reached with the vessels' lenders to transfer the proceeds from these sales as bank financing towards the acquisition of modern second hand bulk carriers. The sale of these two older vessels was decided in the context of the fleet renewal program.

On 16 May 2012, Thasos Shipping Co. Ltd., the ship owning company of the M/V Hellenic Sky completed the sale of the 68,591 dwt Panamax vessel built in 1994 at Sasebo Heavy Industries in Japan. The vessel was sold to an unaffiliated third party for a total cash consideration of US$10.5 million.

The M/V Hellenic Sky was acquired in July 2003 at a price of US$13.2 million. During the past nine years of its operation, the vessel contributed approximately US$19.4 million of net profit. Taking into account the net book value of the vessel and the sale related expenses, a net book gain of US$2.3 million was realised on this sale.

On 23 August 2012, the ship owning company of the 1991 built Panamax vessel, M/V Hellenic Sea, Patmos Shipping Co. Ltd., completed the sale of its vessel to an unaffiliated third party for a total cash consideration of US$5.3 million.

The M/V Hellenic Sea was acquired in March 2002 at a price of US$9.6 million and during the past ten years of its operation, the vessel contributed approximately US$40.6 million of net profit. Taking into account the vessel's net book value and expenses related to the sale, a net book loss of US$0.2 million was realised on this sale.

In addition there are two new building Kamsarmax bulk carriers which are currently under construction and are expected to be delivered in 2013.

Vessels under construction as at 31 December 2012:

Upon delivery of the two Kamsarmax vessels the aggregate carrying capacity will increase to 333,116 dwt and the average age will drop to 9.8 years.

Vessels' Employment

The dry bulk freight market deteriorated in 2012 with the BDI moving between 647 points and 1,624 points, averaging at 920 points, marking a 40.6% reduction from the 2011 average of 1,549 points. This was mainly the result of a weak global economic growth and a 10% net increase in the tonnage supply, following a 14% net increase in 2011. Although seaborne trade demand continued to grow in 2012, supported mainly by the need for raw materials by the developing countries, tonnage oversupply continued to negatively affect the rates in all the dry bulk carrier subsectors.

In this environment, and considering the unfavourable rates prevailing during the period in review, the vessels were employed on the spot market for the performance of single or consecutive laden legs or under short term time charter agreements, avoiding longer term commitments at low levels.

Towards the end of the year, taking advantage of an upswing in the market, two of the vessels, namely the M/V Konstantinos D and M/V Hellenic Wind were fixed under medium term time charters.

The M/V Konstantinos D was fixed for a period of 4-6 months at a daily gross hire rate of US$7,600. The charter commenced on 29 September 2012. After the charter's termination on 29 January 2013, the vessel performed a short time charter trip until end February 2013 and is currently undergoing her Intermediate Survey.

The M/V Hellenic Wind was fixed for a period of 5-9 months at a daily gross hire rate of US$7,350. The charter commenced on 5 October 2012 and is still employed under this agreement, which expires at the latest on 5 July 2013.

Taking into consideration the operating fleet, the estimated time charter coverage currently stands at 42.2% for the first half of 2013 and at 20.9% until year end 2013.

The current Employment of the vessels is summarised below:

Full Year 2012 Results

For the year ended 31 December 2012, Hellenic reported total revenues of US$13.2 million compared to US$33.2 million for the same period of 2011. 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 and the M/V Hellenic Sea in May 2012 and August 2012 respectively, and the prolonged depression of the dry bulk freight rates.

Earnings before Tax, Interest, Depreciation and Amortisation (EBITDA) was reported negative at US$0.2 million for the twelve months ended 31 December 2012 compared to positive US$16.9 million for the same period in 2011.

Operating loss amounted to US$15.9 million for the year ended 31 December 2012 compared to US$25.7 million for the same period of 2011. The year ended 31 December 2012 operating loss figure included non-cash impairment charge of US$8.6 million, 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.

As a result of the significant drop in asset values an impairment indication was identified and the relevant tests were performed in order to determine the vessels' recoverable amounts. As a conclusion the book values of three vessels were adjusted to their recoverable amounts and an impairment charge was reported for the year ended 31 December 2012 and 31 December 2011 in the amount of US$8.6 million and US$29.3 million respectively.

Excluding the above mentioned non-cash items, Hellenic reported for the year ended 31 December 2012 an operating loss of US$9.4 million compared to an operating profit of US$3.6 million for the year ended 31 December 2011.

Net loss for the year ended 31 December 2012 amounted to US$20.7 million representing a loss per share of US$0.45 calculated on 45,616,851 weighted average number of shares. Net loss for the year ended 31 December 2011 amounted to US$30.4 million representing a loss per share of US$0.67 calculated on 45,616,851 weighted average number of shares.

During 2012 4.0 vessels were operated, earning on average US$7,414 per day compared to 5.0 vessels and average earnings of US$17,369 per day in 2011.

As a result of the decrease in ownership days, vessel operating expenses dropped by US$2.3 million to a total of US$7.7 million for the twelve months ended 31 December 2012. The daily operating expenses for the year ended 31 December 2012 were reported at US$5,234 from US$5,456 for the same period of 2011 marking a 4.1% reduction.

The Company's general and administrative expenses for the twelve months of 2012 decreased by 19.7% to US$1.5 million for the same period of 2011.

Selected Financial Data

(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

(2) Ownership days are the cumulative days in a period during which each vessel is owned by the respective vessel owning company.

(3) Available days are ownership days less the days that the vessels are at scheduled off-hire for maintenance or vessel repositioning.

(4) Operating days are the available days less all unforeseen off-hires.

(5) Fleet utilisation is measured by dividing the vessels' operating days by the vessels' available days.

(6) TCE is defined as vessels' total revenues less voyage expenses divided by the number of the available days for the period.

(7) Average daily vessel operating expenses is defined as vessel operating expenses divided by ownership days.

Debt / Financing Activities & Capitalisation

Debt as of 31 December 2012 amounted to US$82.3 million compared to US$88.2 million as of 31 December 2011.

In relation to one of the loan facility agreements the lender has agreed to restructure the loan repayment schedule effective from 1 January 2012. The term of the loan was extended for three years, the new maturity date being May 2018. In addition, the option to transfer the proceeds from the sale of the M/V Hellenic Sky towards the acquisition of a modern second hand bulk carrier, within a period of eighteen months from the vessel's delivery to its buyers, has been granted.

In relation to the second loan facility agreement the lender provided the option to transfer the proceeds from the sale of the M/V Hellenic Sea as bank financing towards the acquisition of a modern second hand bulk carrier, to be acquired within a period of twelve months. Further to this agreement, if a new vessel is acquired during the twelve month period, the tenor of the loan shall be extended for four years with the new maturity being May 2020.

The gross principal debt repayment falling due within the year 2013 amounts to US$4.7 million. In case the options are not exercised a prepayment in the amount of US$15.6 million is due to be made to the Banks in late 2013. This amount is held pledged with the lenders and is included in restricted cash as of 31 December 2012.

An earnings recapture clause has been agreed under both loan facilities based on which part of any excess earnings generated by the vessels will be paid to the lending banks commencing from financial year 2012.

As of 31 December 2012, Hellenic and the companies owning the vessels within the fleet have obtained the appropriate waivers from their lenders.

Debt (debt, net of deferred financing fees) to total capitalisation (debt and stockholders' equity) as of 31 December 2012 amounted to 52.7% compared to 48.7% on 31 December 2011. Net debt (debt less cash and cash equivalents) to total capitalisation amounted to 31.9% on 31 December 2012 compared to 30.2% on 31 December 2011.

Total cash, including restricted cash amounted to US$47.7 million and US$48.0 million as of 31 December 2012 and 31 December 2011, respectively.

Restricted cash reported at 31 December 2012 amounted to US$19.2 million consisting of: a) US$0.2 million being funds held in a retention account for the repayment of the next debt instalment and interest due under one of the existing loan agreements, b) US$3.4 million representing cash retained against issuance of a Bank Guarantee of US$3.1 million provided as security to Setsea SpA, the former charterers of the M/V Hellenic Sea, pending the outcome of the arbitration proceedings in London between Owners and Charterers on the occasion of the vessel's grounding in the Amazon River in July 2010, and c) US$15.6 million being the aggregate of the proceeds from the sale of the M/V Hellenic Sky and M/V Hellenic Sea which are pledged with the vessels' lenders for the purpose of being transferred as financing towards future acquisitions as described above.

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 2012 be suspended.

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

Charles Leigh-Pemberton

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 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. The fleet consists of three vessels, comprising one Panamax, one Supramax and one Handymax with an aggregate carrying capacity of 169,116 dwt and a weighted average age of 15.5 years. Two new building vessels currently under construction, both Kamsarmaxes with an aggregate carrying capacity of about 164,000 dwt are scheduled for delivery within 2013.

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

CONSOLIDATED INCOME STATEMENT

For the year ended 31 December 2012

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOMEFor the year ended 31 December 2012

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As at 31 December 2012

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the year ended 31 December 2012

CONSOLIDATED STATEMENT OF CASH FLOWS

For the year ended 31 December 2012