Final Results for the year Ended 31 December 2011

2011 Financial Results

Press Release 14 March 2012

HELLENIC CARRIERS REPORTS FINAL RESULTS FOR THE

YEAR ENDED 31 DECEMBER 2011

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, is pleased to report today its Final Results for the year ended 31 December 2011.

The Company's management team will be holding a conference call and webcast today, at 2pm (London), 4pm (Athens) and 10am (New York) to discuss the results.

2011 FINANCIAL 

Þ Revenue US$33.2 million (2010: US$57.5 million)

Þ EBITDA US$16.9 million (2010: US$38.4 million)

Þ Operating Profit US$3.6 million before non-cash items (2010: US$24.5 million)

Þ Net Loss US$1.1 million excluding non-cash items (2010: US$19.1 million Net Income)

Þ Non-cash impairment charge US$29.3 (2010: US$ nil)

Þ Gearing ratio at 30.2% as of 31 December 2011 (26.5% as of 31 December 2010)

Þ Total cash, including restricted cash of US$48.0 million as of 31 December 2011 (US$60.0 million, as of 31 December 2010)

Þ Reduction of Gross debt to US$88.2 million on 31 December 2011 (US$105.3 million on 31 December 2010) resulting in a net debt position of US$40.1 million as of 31 December 2011 (US$45.3 million as of 31 December 2010)

2011 OPERATIONAL

Þ Operation of a fleet of 5.0 vessels on average compared to 5.6 vessels in 2010

Þ Net cash generated from operations US$16.7 million (2010: US$36.1 million)

Þ Time Charter Equivalent rate of US$17,369 (2010: US$26,089) outperforming the average 2011 Panamax and Supramax TC earnings (US$13,895 and US$13,792 respectively)

Management Commentary

Hellenic Carriers is pleased to report its financial results for the year ended 31 December 2011.

Despite strong demand for dry bulk commodities, the market was subject to considerable pressure in 2011 impacted by heavy new vessel deliveries resulting in volatile freight rates.

The decrease in our Company's revenues is mainly attributed to the lower freight rates prevailing during the year. It is also a result of the reduction in fleet operating days after the sale of the M/V Hellenic Breeze in August 2010.

During the first quarter of the year, our Company benefited from the continuation of charters agreed prior to the market downturn in Q4 2008 at very high rates. Following the expiration of these agreements, the vessels were traded in the spot market avoiding long term commitments at low rates. Our strategy moving forward is to secure period employment for the vessels when the freight market improves.

Our operating fleet will expand in 2013 when the two new building Kamsarmax vessels on order since 2010 will be delivered. By that time, we expect dry bulk fundamentals to improve, as the glut of new tonnage that is currently being delivered will have subsided and will allow the underlying supply/demand balance to tighten, thereby helping the freight market.

However, in light of current market conditions, our company has already taken steps to reinforce further its liquidity position. As a result of an agreement reached with the lenders, the debt repayment obligations have been reduced for the next 2 years and the tenor of one of the loan facilities extended for 3 years. All necessary waivers in respect of the financial covenants until 2014 have also been obtained. Furthermore, our Board of Directors recommended that dividend payments for the year 2011 be suspended in order to optimize the use of cash when market opportunities arise.

Time charter rates have continued to be at depressed levels in 2012 and we expect 2012 to be a challenging year for the dry bulk sector, mainly due to fleet supply issues. However, looking ahead, we are optimistic about the longer term dry bulk fundamentals as economic growth in the developing countries remains robust. This trend is expected to continue thereby increasing the need for transportation of iron ore, coal and grain. Equally important is the urbanization growth in the Far East, which is on-going and will result in an increase in infrastructure projects and higher demand for energy resources. Another factor which should be taken into account is that approximately 17% or 100mdwt of the existing global dry-bulk fleet is over-aged and will eventually be scrapped, thereby alleviating the oversupply within the next two years. We expect that during the same period the pace of new building orders will remain at low levels due to limited financing resources.

The combination of the above mentioned factors, sustainable demand from the emerging economies, increased scrapping and limited new building activity, contribute to our positive long term outlook of the dry bulk market.

 Fleet Developments

Fleet details as at 31 December 2011:

In June 2010, the Company, through two wholly owned subsidiaries entered into shipbuilding contracts with Zhejiang Ouhua Shipbuilding Co. Ltd. for the construction of two Kamsarmax bulk carriers. The contract price for each vessel is US$34.0 million and the cost of additions to each vessel's initial specification amounts to US$0.2 million. Out of this amount 40% of the contract price was paid in 2010 and the remaining 60% is payable upon delivery of the vessels in 2013. In March 2011, the respective subsidiaries signed loan facility agreements with a major European financial institution securing financing of up to 65% of each vessel's market value upon delivery or maximum US$22.1 million per vessel. Such amounts shall be drawn down upon delivery of each new building vessel from the shipyard. The Company has no further financial commitments to the shipyard until delivery of the vessels in 2013.

Following the delivery of the two Kamsarmax vessels, the Company will own and operate through its subsidiaries a diversified fleet of seven dry bulk carriers comprising two Kamsarmaxes, three Panamaxes, one Supramax and one Handymax with an aggregate carrying capacity of about 467,141 dwt and a weighted average age of 12.5 years (as of 31 March 2013).

Fleet Deployment

The dry bulk freight market deteriorated in 2011 with the BDI moving between 1,043 points and 2,173 points, averaging at 1,549 points compared to 2,758 points in 2010. This was mainly a result of a 14% increase in tonnage supply during 2011, followed by a 16% net increase in 2010. Although sea borne trade demand continued to grow in 2011, supported mainly by the need for raw materials by the developing countries, it could not fully absorb the massive inflow of new ships during the past two years. In this environment, during the first quarter of the year, Hellenic benefited from the continuation of time charters agreed prior to the market downturn in Q4 2008 at favourable rates compared to the prevailing market rates during the year in review.

In particular, the M/V Hellenic Wind continued her employment under a 3-year time charter agreement at a gross daily rate of US$54,000. This charter commenced in May 2008 and was terminated in April 2011, one month earlier than the contractually agreed redelivery date. However, charterers Messrs Hanjin Shipping Co Ltd. compensated the Owners for the early redelivery of the vessel.

The M/V Konstantinos D was employed under a time charter agreement with Korea Line Corp., at a gross daily hire rate of US$35,000. This charter was due to expire on 25 January 2011; however the vessel was redelivered to her Owners on 14 January 2011. The charterers fulfilled all their financial obligations towards Owners (including payment of hire revenue and compensation for the early redelivery) prior to their application for rehabilitation in Korea.

During the first quarter of the year, the M/V Hellenic Sky was earning US$22,000 per day gross on the basis of a time charter agreement with Cargill International S.A. for a period of minimum five to about seven months. The vessel was redelivered to her Owners on 9 March 2011. Following redelivery from Cargill, the M/V Hellenic Sky was fixed under a time charter agreement with Bunge S.A. for a period of six to eight months at a gross daily rate of US$16,000. The charter commenced on 9 March 2011 and the vessel was redelivered to her Owners on 16 October 2011. As from 16 October 2011 the vessel has been employed in the spot market.

During the same period the M/V Hellenic Sea was employed under time charter for nine to eleven months to SetSea S.p.A. at a gross daily rate of US$23,300. This charter was terminated on 28 March 2011, a month earlier than the agreed redelivery date. The charterers compensated the Owners by paying the relevant amount of damages for early redelivery.

Following the expiration of the above agreements, the Company opted to employ some of the vessels in the spot market for the performance of single or consecutive laden legs or under short term time charter agreements, avoiding long term commitments at depressed market levels. In some cases repositioning of the vessels was conducted in order to achieve more attractive time charter rates. Fleet days spent for repositioning of the vessels totaled to about 60 days.

Following her redelivery from Hanjin Shipping Co Ltd., the M/V Hellenic Wind traded under a short-term time charter agreement with Sangamon Transportation Group at a daily gross rate of US$24,500 from arrival in South America plus US$430,000 bonus in respect of bunkers cost for the ballast leg. Upon termination of this fixture on 1 August 2011, the vessel was delivered to her next charterers Transgrain Shipping B.V. for the execution of two laden legs at a gross daily rate of US$11,750 for the first 100 days and US$12,500 thereafter. She completed her employment on 18 November 2011 and proceeded for her scheduled special survey and dry docking in China which she completed on 30th December 2011. Following completion of the special survey, the vessel ballasted towards the US Gulf and was fixed on 12 February 2012 under a time charter agreement for the period of about four to maximum six months at a gross daily rate of US$10,000 plus a ballast bonus of US$660,000.

Following redelivery from Korea Line Corp., the M/V Konstantinos D was fixed under a time charter agreement with Bunge S.A. for a period of four to seven months at a gross daily rate of US$9,250 for the first 40 days, increasing to US$14,200 per day for the remaining period. This charter commenced on 14 January 2011 and was terminated on 29 July 2011 and averaged at a gross rate of US$13,189 per day. She was directly delivered to her next charterers Western Bulk Pte Ltd. for the performance of two, optional three, laden legs earning US$14,250 per day gross for the first two legs, and US$14,500 for the optional third leg. Upon termination of the above charter agreement on 18 November 2011, the vessel was fixed under a time charter agreement with Marimed Shipping Inc for a period of about four to maximum six months at a gross daily rate of US$15,000. This charter came to end on 3 March 2012 and the vessel is now trading in the spot market.

During 2011, the M/V Hellenic Horizon traded in the spot market performing short voyages and time charter trips, mainly in the Atlantic basin.

With respect to the trading activity of M/V Hellenic Sea, following her redelivery from Setsea S.p.A the vessel was employed under short term time charters and on 29 October 2011 was delivered to Swissmarine Services S.A. to perform two optional three laden legs at a gross daily rate of US$15,000 from arrival of the vessel in Colombia plus US$500,000 bonus in respect of bunkers cost for the ballast leg. The option for the third leg was not exercised, the charter was terminated on 6 January 2012 and the vessel is trading in the spot market since.

The fleet utilisation during the year remained at 98.3% taking into account 23 idle days for the fleet.

Taking into consideration the operating fleet and the currently effective time charter agreement of the M/V Hellenic Wind, the earlier expiration date of which is 7 June 2012, the estimated time charter coverage stands at 37.7% for the first half of 2012 and at 18.7% until year end. The remaining fleet is currently trading in the spot market.

Full Year 2011 Results

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 - Other operating income

For the year ended 31 December 2011, Hellenic reported total revenues of to US$33.2 million compared to US$57.5 million for the same period of 2010. The decrease in revenues is mainly attributed to the depressed dry bulk freight rates prevailing during the year. We note that in 2011 the Baltic Dry Index (BDI) averaged at 1,549 points compared to 2,758 points in 2010, a decrease of 43.8%. The reduced revenue stream is also attributed to the decrease in fleet operating days for the twelve months of 2011 due to sale of the M/V Hellenic Breeze in August 2010.

Operating loss amounted to US$25.7 million for the year ended 31 December 2011 compared to an operating profit of US$32.9 million for the same period of 2010. The operating loss figure for the year ended 31 December 2011 included the non-cash impairment charge of US$29.3 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 of US$29.3 million was recorded. In 2010, a gain of US$8.5 million resulting from the sale of M/V Hellenic Breeze was also recorded as a non-cash item.

Excluding the above mentioned non-cash items, Hellenic reported for the year ended 31 December 2011 and 2010 an operating profit of US$3.6 million and US$24.5 million, respectively.

The operating result was also affected by the depreciation and amortisation charge of the year amounting to US$13.8 million. The depreciation and amortisation charge for 2010 amounted to US$14.5 million.

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. Net profit for the year ended 31 December 2010 amounted to US$27.5 million representing a profit per share of US$0.60 calculated on 45,616,851 weighted average number of shares.

Excluding non-cash items, net loss for the year ended 31 December 2011 amounted to US$1.1 million, or a loss of US$0.02 per basic and diluted share. The respective net profit, excluding non-cash items for the year ended 31 December 2010 amounted to US$19.1 million, or a profit of US$0.42 per basic and diluted share.

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.

During 2011 the Company, through its subsidiaries, operated 5.0 vessels which earned on average US$17,369 per day compared to 5.6 vessels and average earnings of US$26.089 per day in 2010. We note that Panamax and Supramax average time charter rates for the year ended 31 December 2011 were reported at US$13,895 and US$13,792, respectively compared to US$24,995 and US$21,867 for the same period of in 2010.

Earnings before Tax, Interest, Depreciation and Amortisation (EBITDA) was reported at US$16.9 million for the twelve months ended 31 December 2011 compared to US$38.4 million for the same period of in 2010.

The Company's general and administrative expenses for the twelve months of 2011 were approximately US$1.8 million, in line with the expenses charged in the same period of 2010.

Vessel operating expenses decreased by US$0.1 million to a total of US$10.0 million, however daily operating expenses increased to US$5,456 from US$4,934. This increase is partly attributed to higher crew costs and lubricant expenses and higher supply costs for the vessel's trading in the Atlantic basin.

Debt / Financing Activities & Capitalisation

Debt as of 31 December 2011 amounted to US$88.2 million compared to US$105.3 million as of 31 December 2010. Repayment of long-term debt during the twelve months of 2011 totaled to US$17.2 million. In order to maintain sufficient liquidity Hellenic and its subsidiaries reached an agreement with one lender to lighten up their debt repayment schedule for the next two years. An earnings recapture clause has been agreed based on which part of the excess earnings generated by the vessels will be paid to the lending bank commencing from financial year 2012.

Furthermore, as of 31 December 2011, Hellenic and its subsidiaries have obtained the appropriate waivers from their lenders.

Restricted cash reported at 31 December 2011 was US$4.0 million. Out of this amount, US$0.6 million represents funds held in retention account for the repayment of the next debt instalment and interest due under one of the existing loan agreements. The amount of US$3.4 million is retained against issuance of a Bank Guarantee of US$3.1 million provided as security to Setsea SpA, the former charterers of the vessel M/V Hellenic Sea, pending the outcome of arbitration proceedings already commenced in London between Owners and Charterers on the occasion of vessel's grounding in the Amazon River in July 2010. Input from legal advisors is supportive to Owners' position, therefore, as of date, the Company has not recorded a provision in the financial statements.

As of 31 December 2011 debt (debt, net of deferred financing fees) to total capitalisation (debt and stockholders' equity) amounted to 48.7% compared to 45.6% in 2010. Net debt (debt less cash and cash equivalents) to total capitalisation amounted to 30.2% on 31 December 2011 compared to 26.5% on 31 December 2010. The respective increase is a result of the impairment charge recorded in 2011.

Total cash, including restricted cash amounted to US$48.0 million and US$60.0 million as of 31 December 2011 and 31 December 2010, respectively.

Post balance sheet events

In February 2012, the Company and its subsidiaries agreed with the second lender to enter into an agreement for the restructuring of the repayment schedule for the next two years and the extension of the tenor by three more years. An earnings recapture clause has been agreed based on which part of the excess earnings generated by the vessels financed under this loan facility agreement during each year, commencing from financial year 2012 and until 31 December 2013, will be paid to the lending bank.

Following the restructuring of the loan facilities with both existing lenders, the scheduled debt repayments falling due in 2012 have been reduced to US$6.3 million. In addition, the main financial covenants have been waived until 1 January 2014.

Dividend

In order to reinforce the Company's liquidity and optimize the use of cash when market opportunities arise, the Directors of the Company recommended that dividend payment for the year 2011 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 21 March 2012 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 7459 3600

Capital Link 

Nicolas Bornozis +1 212 661 7566 (New York)

Eleni Theodoropoulou +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 five vessels, comprising three Panamaxes, one Supramax and one Handymax with an aggregate carrying capacity of 303,141 dwt and a weighted average date of 16.4 years plus two new building vessels currently on order, both Kamsarmaxes with an aggregate carrying capacity of about 164,000 dwt.

Following the delivery of the two Kamsarmax vessels, the Company will manage through Hellenic Shipmanagement Corp. a fleet of seven dry bulk carriers comprising two Kamsarmaxes, three Panamaxes, one Supramax and one Handymax with an aggregate carrying capacity of about 467,141 dwt and a weighted average age of 12.5 years (as of 31 March 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 2011

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOMEFor the year ended 31 December 2011

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As at 31 December 2011

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the year ended 31 December 2011

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CONSOLIDATED STATEMENT OF CASH FLOWS

For the year ended 31 December 2011