Final Results

2010 Financial Results

Press Release 16 March 2011

HELLENIC CARRIERS REPORTS FINAL RESULTS FOR THE

YEAR ENDED 31 DECEMBER 2010

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 2010.

The Company's management will be holding a conference call and webcast today 16 March 2011, at 2pm (London), 4pm (Athens) and 10am (EDT) to discuss the results.

2010 FINANCIAL

Þ US$57.5 million Revenue (2009: US$58.0 million)

Þ US$38.4 million EBITDA1 (2009: US$38.9 million)

Þ Book gain of US$8.5 million and debt repayment of US$21.0 million following the sale of M/V Hellenic Breeze

Þ US$32.9 million Operating Profit (2009: US$23.9 million)

Þ US$27.5 million Net Income (2009: US$18.1 million)

Þ Earnings per share of US$0.60 (2009: US$0.40)

Þ Dividend payments: Interim dividend for 2010 2.15 pence per share and final dividend for 2010 5.45 pence per share subject to AGM's approval (2009: total dividend 2.47 pence per share)

Þ Gearing ratio2 at 26.5% as of 31 December 2010 (39.4% as of 31 December 2009)

Þ Payment of first two instalments in the amount of US$27.2 million for the construction of two new building Kamsarmax vessels

Þ Total unencumbered cash liquidity of US$59.0 million as of 31 December 2010 (US$71.2 million as of 31 December 2009)

2010 OPERATIONAL

Þ Operation of a fleet of 5.6 vessels on average compared to 6.0 vessels in 2009

Þ Sale of the 1993 built Panamax M/V Hellenic Breeze at a gross contract price of US$23.5 million

Þ Signing of shipbuilding contracts with Zhejiang Ouhua Shipbuilding Co Ltd for two Kamsarmax vessels to be delivered in Q1 2013 at US$34.2 million each

Þ Time Charter Equivalent rate of US$26,089 (2009: US$25,910) outperforming the average 2010 Panamax and Supramax average TC earnings (US$25,041 and US$22,456 respectively) 3

Þ Daily average operating expenses of US$4,934 (2009: US$4,799)

Management Commentary

Fotini Karamanli, Chief Executive Officer, commented: ''Hellenic Carriers is pleased to report very strong financial and operational results for the year ended 31 December 2010 despite the challenging conditions prevailing in the global economy and the volatility in the dry bulk shipping sector. I am also pleased to announce payment of a final dividend for 2010 of GBP 5.45 pence per share or total GBP 2,486,118, evidencing the Company's consistency and reliability throughout the shipping cycle.

''During the year we continued to employ our vessels primarily under medium to long term charters generating healthy cash flows, to strengthen our balance sheet and to reinforce our liquidity. This strategy, which we have persistently followed during the last three years, has allowed us not only to face challenging market conditions, to reward our shareholders through our dividend payments, but also to initiate our fleet renewal and expansion programme.

''Since early 2010 the market conditions placed a significant premium on second hand vessels, relative to the value of new buildings. We took advantage of this opportunity by selling in May 2010 a 17-year old Panamax dry bulk carrier at a price of US$23.5 million, out of which US$21.0 million was used towards debt repayment. We then placed orders for the construction of two Kamsarmax new-building vessels at US$34.2 million each. Through the order of these vessels, which will be delivered in the Q1 2013, we shall expand our presence in the Panamax / Kamsarmax sector which has performed strongly and shown resilience during times of depressed freight earnings.

''Volatility has been present in the dry bulk market, however since Q4 2010 the downward pressure has been more intense, while the pace of deliveries of new-buildings, which had been ordered during the boom years, has accelerated. Since the pace of new building deliveries in 2011 will not subside, we believe the freight market will be affected and remain cautious for the short to medium term. However, we are positive for the long term, since demand from the developing economies is and will remain strong whilst at the same time the mature economies are slowly but steadily stepping out of recession and returning to growth.

''We believe that although in the short term the current pressure in the freight market will affect earnings and profitability, in the longer term it will probably help the prospects of dry bulk shipping. We also believe that this pressure may create real opportunities on the acquisition front of modern, primarily second hand, vessels. As evidenced in our balance sheet, our Company is well positioned not only to face market challenges for the coming year but also to take advantage of acquisition opportunities maximizing long term value for our shareholders.''

Fleet Developments

In May 2010 the 1993 built Panamax Hellenic Breeze was sold at a contract price of US$23.5 million to an unaffiliated third party. With this sale, the Company initiated its fleet renewal program through the disposal of an older vessel, which had been purchased at US$21.0 million in 2006.

In the end of June 2010 two newly formed subsidiaries of Hellenic entered into shipbuilding contracts with Zhejiang Ouhua Shipbuilding Co. Ltd., for the construction of two Kamsarmax vessels. Each of the vessels will cost US$34.2 million in total (contract price US$34.0 million each plus US$0.2 million in respect of additions to the initial specification).

The new building vessels are scheduled for delivery in January and March 2013 respectively. An advance payment in the amount of US$20.4 million representing 30% of the contract price for both vessels was made in July 2010 and a second payment of US$6.8 million representing 10% of the contract price for both vessels was effected in October 2010. The remaining 60% of the price is payable upon delivery of the vessels.

In July 2010, the M/V Hellenic Sea sustained hull damage after running aground whilst navigating through the Amazon River in laden condition. A specialist salvage team was appointed to re-float the vessel and assist in the laden voyage towards the discharging port. Following transshipment operations of part of the cargo, the vessel was successfully re-floated on 14 August 2010 and proceeded to her destination to discharge the remaining cargo on board. Temporary repairs were carried out at the discharge port, following which the ship sailed to a repair yard for permanent repairs. Such repairs were concluded on 17 November 2010 together with the vessel's special survey. The vessel remained off-hire for an aggregate period of 136 days and was redelivered to her charterers on 5 December 2010 to resume service under her time charter agreement. The shipowning company, through its insurance policy, is covered for the cost of the repairs, the cost of salvage and related expenses (excluding loss of hire) above the applicable deductible (US$125,000).

During the year ended 31 December 2010 three of the vessels completed their special surveys at a total cost of US$2.2 million which has been capitalised. No further scheduled surveys are planned for 2011 in respect of the existing fleet.

Fleet details as at 31 December 2010:

At the date of release the Company owns and operates through its subsidiaries an operating fleet of five dry bulk carriers comprising three Panamaxes, one Supramax and one Handymax with an aggregate carrying capacity of about 303,141 dwt and a weighted average age of 15.4 years. In addition two subsidiaries of the Company have placed orders for the construction of two Kamsarmax vessels with an average carrying capacity of 164,000 dwt.

Fleet Deployment

During the year ended 31 December 2010, two of the vessels in the fleet continued operating under medium to longer term time charter agreements that had commenced in Q4 2007 and Q2 2008 at favourable rates compared to the market rates prevailing during the period.

In particular the M/V Hellenic Wind was employed under a 3-year time charter agreement with Hanjin Shipping Co. Ltd at gross daily rate of US$54,000. The charter commenced in May 2008 and its earliest expiration date is 14 May 2011.

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. The charter was due to expire on 25 January 2011, however, the vessel was redelivered to her Owners on 14 January 2011. The Charterers had fulfilled all their obligations towards Owners (including payment of hire and compensation for the early redelivery) prior to filing a petition with the courts applying for rehabilitation in Korea.

Following the termination of the Korea Line charter in January 2011 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. The charter commenced on 14 January 2011. The earliest and latest expiration dates are 14 May 2011 and 14 August 2011 respectively.

The M/V Hellenic Breeze was employed under a restructured time charter agreement at a daily gross rate of US$24,000. This charter was terminated at Owners' option on 25 May 2010 due to the vessel's sale. Thereafter and until delivery to her new owners on 12 August 2010, the vessel was trading on a time charter trip at a gross daily rate of US$29,000.

Furthermore, during the year ended 31 December 2010 the Company, through its respective shipowning subsidiaries, extended one of its existing time charter agreements at a favourable daily hire rate, entered into a new time charter agreement for one vessel and selectively employed two of its vessels on the spot market.

In particular, the M/V Hellenic Sky was time chartered on 22 June 2009 to Cargill International S.A. at a gross daily rate of US$18,000 for a period of minimum thirteen to about sixteen months, which would have expired in November 2010. This charter was extended for a period of minimum five to about seven months at the gross daily rate of US$22,000 commencing on 20 October 2010. The vessel was redelivered to her Owners on 9 March 2011 and is currently 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 delivered to her new charterers in the Far East. The earliest expiration date is 9 September 2011 and the latest is 9 November 2011.

During the first quarter of 2010 the M/V Hellenic Horizon was trading in the spot market. In April 2010, the vessel was fixed under a time charter agreement with Itiro Corporation BVI for a period of minimum five to maximum seven months at a gross daily rate of US$30,000. The vessel was redelivered to her owners on 19 October 2010 and thereafter was trading spot. The M/V Hellenic Horizon is currently employed under a time charter agreement with Dampskibsselskabet Norden A/S, Denmark, for the performance of 2 to 3 laden legs (third leg at Charterers´ option) with an estimated duration of about 60 to about 90 days (depending on the execution of the third leg) at a gross daily rate of US$15,500 for the first two legs, US$16,000 for the optional leg and US$17,000 for the period, if any, extending after 100 days. According to the terms of the charter the vessel's redelivery to the Owners upon completion of the 2 or 3 laden legs is limited to the Atlantic basin or the Mediterranean Sea, areas which are considered more favourable for chartering purposes.

The M/V Hellenic Sea completed her time charter to Swissmarine Corporation Ltd on 20 February 2010, thereafter carried out two short charters before commencing her employment on 29 May 2010 for a period of minimum 11 to about 13 months to Setsea S.p.A. at a gross rate of US$23,300 per day. During this charter the vessel sustained hull damage in July 2010 and remained off-hire for an aggregate period of 136 days. The vessel resumed service under this time charter agreement on 5 December 2010.

Taking into consideration the operating fleet, the estimated time charter coverage stands at 69.4% for H1 2011 and at 38.3% until year end.

The Fleet Deployment of Hellenic is summarized below:

Full Year 2010 Results

Despite the continuous volatility in the dry bulk sector during 2010, Hellenic maintained some of the long term charters agreed prior to the market downturn in Q4 2008 thus achieving charter rates above market levels prevailing during 2010. Through these charters, the Company secured healthy cash flows, which contributed towards the enhancement of its balance sheet enabling the company to remain resilient during market downturns and to expand.

Revenues reported for the year 2010 amount to US$57.5 million compared to US$58.0 million for 2009, a slight decrease of 0.9%. As a result of the sale of the M/V Hellenic Breeze in August 2010 and the hull damage sustained on the M/V Hellenic Sea in July 2010, fleet operating days reported for 2010 decreased to 1,821 from 1,942 reported for 2009. Although these events affected the earnings generation capacity of the Company, revenues reported for 2010 were similar to those achieved in 2009.

Voyage expenses in 2010 amounted to US$5.8 million compared to US$4.7 million in 2009, an increase of about 23.4%, which is mainly due to the fact that one vessel, namely the M/V Hellenic Horizon was employed under voyage charters for a period of about 4 months and therefore fuel expenses and port costs for that period were for Owners' account.

The Time Charter Equivalent rate achieved by the fleet in 2010 was reported at US$26,089 per day compared to US$25,910 per day for the average fleet of 6.0 vessels in 2009.

Excluding the period during which the M/V Hellenic Sea remained off-hire, the fleet utilization for 2010 was 98.7%. Taking into consideration the off-hire period of the M/V Hellenic Sea following the hull damage, the fleet utilization was reported at 91.8%.

As a result of the sale of the M/V Hellenic Breeze, vessel operating expenses for 2010 decreased by US$0.4 million to a total of US$10.1 million. On a per day basis operating expenses increased by 2.8% from US$4,799 in 2009 to US$4,934 in 2010, an increase which is in line with market conditions.

The Company's general and administrative expenses in 2010 amounted to US$1.8 million compared to US$2.0 million in 2009, a decrease of 10.0%.

The book gain resulting from the sale of the M/V Hellenic Breeze amounted to US$8.5 million.

EBITDA excluding the gain on sale of the M/V Hellenic Breeze and other operating income was reported at US$38.4 million compared to US$38.9 million for 2009, a decrease of 1.3%.

Net income was reported at US$27.5 million (US$19.0 million net of the gain on the sale of M/V Hellenic Breeze) compared to US$18.1 million for 2009, an increase of 51.9%.

Basic and diluted earnings per share calculated on 45,616,851 weighted average number of shares were US$0.60 for the full year ended 31 December 2010 compared to earnings per share of US$0.40 for the full year of 2009.

At 31 December 2010 Hellenic reported claims receivable of 3.8 million, which represent mainly the cost of repairs and related expenses in connection with the hull damage of the M/V Hellenic Sea in July 2010. The shipowning company, through its insurance policy, is covered for the cost of repairs and related expenses (excluding loss of hire) above the applicable deductible (US$125,000).

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.

Debt / Financing Activities & Capitalisation

Out of the proceeds from the sale of the M/V Hellenic Breeze (US$23.5 million), an amount of US$21.0 million was prepaid to the respective lenders against the outstanding loan balance. Debt balance at 31 December 2010 was US$105.3 million compared to US$137.6 million at 31 December 2009.

Further to the signing of the shipbuilding contacts with Zhejiang Ouhua Shipbuilding Co. Ltd. an aggregate amount of US$13.6 million was paid to the yard as advance for the construction of each new building Kamsarmax vessel. Total advances paid for the two vessels on order amount to US$27.2 million.

With respect to the financing of the two Kamsarmax vessels the Company has signed an offer letter with a financial institution for the financing of the two Kamsarmax vessels currently on order. The lender has offered a term-loan facility of up to 65% of vessels' value upon delivery but not more than US$22.1 million per vessel. Such amounts shall be drawn down upon delivery of each new building from the yard to the respective owning companies.

As of 31 December 2010 debt (debt, net of deferred financing fees) to total capitalisation (debt and stockholders' equity) dropped to 45.6% from 57.5% in 2009, a decrease of 20.7%. Net debt (debt less cash and cash equivalents) to total capitalisation dropped to 26.5% on 31 December 2010 from 39.4% on 31 December 2009, a decrease of 32.7%.

Dividend

The Board of Directors of the Company recommended a final dividend for 2010 of GBP 5.45 pence per share or total GBP 2,486,118 subject to shareholders' approval at the AGM to be held in Athens on 11 May 2011. The final dividend will be payable on 20 May 2011 to shareholders on record as of 26 April 2011, with the ex-dividend date being 20 April 2011.

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".

In case of any problems with the above numbers, please dial 0800-694-1503 (UK Toll Free Dial-in), 00800-127-011(Greece Toll Free Dial-in), 1-866-223-0615 (US Toll Free Dial-in), or +44 (0)1452-586-513 (Standard International Dial-in). Please quote "Hellenic Carriers".

A telephonic replay of the conference call will be available until 23 March 2011 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

Panmure Gordon (UK) Limited

Capital Link 

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 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 2010

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOMEFor the year ended 31 December 2010

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As at 31 December 2010

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the year ended 31 December 2010

CONSOLIDATED STATEMENT OF CASH FLOWS

For the year ended 31 December 2010