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Management Commentary: Fotini Karamanlis, Chief Executive Officer, commented: “Hellenic has made significant achievements during 2007 by becoming a publicly listed company on the AIM market of the London Stock Exchange. We are pleased report strong earnings during a period when we are expanding our fleet and establishing ourselves in the public markets. We are also very pleased to announce that we proceed on schedule with payment of our first dividend as a public company. The dividend payment is linked with Hellenic’s outstanding performance in 2007. These impressive results confirm Hellenic’s long standing track record of efficiency and profitability which further strengthens our growth prospects. Fleet growth was achieved through the acquisition of two vessels, a Supramax we had agreed to acquire prior to our IPO and a Panamax we agreed to acquire in December 2007 which in part, were financed with the proceeds of the IPO. The vessels are scheduled for delivery between March and May 2008, thereby expanding our revenue and profit generation capacity. Our chartering strategy is focused on generating strong, stable and predictable cash flows delivering sustainable and attractive dividends to our shareholders. To achieve this we secure our vessels under medium to long term time charters with first class charterers. We also opportunistically seek shorter term employment options to maximize profits. To this effect, 63% of our fleet available days in 2008 are already secured under time charters. Three of our six ships will be coming available for rechartering in the second quarter, thus increasing our operating leverage and giving us the opportunity to fix these vessels at stronger rates than current levels. Furthermore, in 2008, we expect to benefit from the revenue and profit generation capacity of our larger fleet of six vessels. With our moderate leverage, prudent chartering strategy and strong management expertise, we believe that Hellenic Carriers is well positioned to continue to benefit from the positive fundamentals of the dry bulk sector.” Full Year 2007 Results: For the full year 2007, Hellenic reported total revenues of US$32.8 million compared to US$15.1 million for 2006, an increase of 117.2%. EBITDA increased by 155.7% from US$9.7 million in 2006 to US$24.8 million in 2007. Net income increased by approximately 260% from US$5.4 million in 2006 to US$19.3 million in 2007. Basic and diluted earnings per share calculated on 45,616,851 weighted average number of shares were US$0.42 for the full year ended 31 December 2007 compared to earnings per share of US$0.12 for the full year of 2006. In 2007, the Company owned 3.1 vessels on average, earning on average US$27,311 per day compared to 2.6 vessels and average earnings of US$15,413 per day in 2006. In 2007 the vessel operating expenses increased by US$1.4 million to a total of US$5.5 million. The rise is mainly attributed to higher crew wages, higher insurance premium resulting from the increase in vessel values, higher lubricant costs as well as the addition of a further vessel to our fleet. The decline of the US Dollar against foreign currencies also had a negative impact on the operating expenses. The Company’s general and administrative expenses for the post IPO period in 2007 were US$0.3 million. Management fees increased by US$0.1million and are charged by Mantinia, a related third party, in accordance with the sub-management agreements. Dividends: Subject to Shareholder approval, the Board of Directors of the Company will propose a final dividend for 2007 of 1.10 pence per share or total GBP 501,785.36. The dividend proposed by the Board of Directors, is expected to be approved by the AGM to be held on 21 May 2008. Latest Fleet Developments: On 18 December 2007, the Company announced that it had entered into an agreement to acquire M/V “Orchid Star”, a 1997 built 74,000 dwt Panamax bulk carrier for a total purchase price of US$70 million. The vessel is expected to be delivered to the Company between March and May 2008. On 19 February 2008, the Company announced that M/V “Hellenic Breeze” was fixed on time charter to Oslo listed Golden Ocean for a minimum period of 2 months with maximum charter expiry on 15 June 2008, at the gross daily rate of US$64,000, About Hellenic Carriers Limited Hellenic Carriers Limited owns and operates a fleet of dry bulk vessels that transport iron ore, coal, grain, steel products, cement, alumina, and other dry bulk cargoes worldwide. Its current fleet consists of four vessels, comprising three Panamaxes and one Handymax. The Company has also contracted to acquire a Supramax vessel with expected delivery between 1 March and 30 April 2008 and a Panamax vessel with expected delivery between 1 March and May 31 2008. Including the new Supramax and Panamax vessels to be delivered, Hellenic's fleet has an aggregate carrying capacity of 372,761 dwt and an average age of 12.9 years as of 29 February 2008. More at Hellenic Carriers Limited press release |