|
The Company's Board of Directors has established a committee comprised of independent directors to oversee these potential financing transactions as Peter C. Georgiopoulos, the Company's Chairman, may have an economic interest in the counterparty to such a financing transaction. The Company has provided a brief summary of its expected financial results for the three months and full year ended December 31, 2010. The Company expects to issue a full earnings release and hold an earnings conference call on or before March 31, 2011. Excluding the non-cash impairment charges discussed in the next paragraph, the Company expects to record a net loss of approximately $39 million for the three months ended December 31, 2010, compared to a net loss of $12.0 million from the prior year period. Management believes that this measure enhances the understanding of the effect of net loss on the Company's liquidity. For the three months ended December 31, 2010, the Company expects to record a loss on impairment of vessels of approximately $100 million, for which there was no comparable loss in the prior year period. For the three months ended December 31, 2010, the Company expects to record a loss on impairment of goodwill of approximately $28 million compared to $40.9 million during the prior year period. For the three months ended December 31, 2010, the Company expects net voyage revenue, which is gross voyage revenues minus voyage expenses unique to a specific voyage (including port, canal and fuel costs), of approximately $51 million compared to $60.1 million for the prior year period. For the three months ended December 31, 2010, the Company expects to have an operating loss of approximately $144 million as compared to an operating loss of $40.1 million for the prior year period. Additionally, the Company's net interest expense is expected to increase to approximately $23 million for the three months ended December 31, 2010 compared to $13.8 million for the prior year period. As a result of this, the Company's net loss is expected to increase to approximately $167 million for the three months ended December 31, 2010 compared to a net loss of $52.9 million during the prior year period. The Company expects to report the following results of operations for the year ended December 31, 2010. Excluding the non-cash impairment charges discussed in the next paragraph, the Company expects its net loss for the year ended December 31, 2010 to be approximately $89 million compared to net income of $28.9 million for the prior year. For the year ended December 31, 2010, the Company expects to record a loss on impairment of vessels of approximately $100 million, for which there was no comparable loss in the prior year. For the year ended December 31, 2010, the Company expects to record a loss on impairment of goodwill of approximately $28 million compared to $40.9 million for the prior year. The Company expects net voyage revenue for the year ending December 31, 2010 to be approximately $235 million compared to $291.6 million for the prior year. The aforementioned non-cash losses are expected to be included in operating (loss) income and are expected to be the primary causes of the change in operating (loss) income for the year ended December 31, 2010 as compared to the prior year. During the year ended December 31, 2010, the Company expects to have an operating loss of approximately $133 million as compared to operating income of $24.8 million for the prior year. Additionally, the Company's net interest expense is expected to increase to approximately $82 million for the year ended December 31, 2010 compared to $37.3 million for the prior year. As a result, the Company's net loss is expected to increase to approximately $217 million for the year ended December 31, 2010 as compared to a net loss of $12.0 million during the prior year. The foregoing information is based on the Company's preliminary estimates of its results of operations for the three months and full year ended December 31, 2010 and anticipated changes from the prior year. The Company's estimates are subject to change, and actual results may differ significantly from these estimates. About General Maritime Corporation General Maritime Corporation is a leading crude and products tanker company serving principally within the Atlantic basin, which includes ports in the Caribbean, South and Central America, the United States, West Africa, the Mediterranean, Europe and the North Sea. General Maritime also currently operates tankers in other regions including the Black Sea and Far East. General Maritime owns a fully double-hull fleet of 32 tankers - seven VLCC, eleven Aframax, eleven Suezmax tankers, two Panamax and one Product tanker - with a total carrying capacity of approximately 5.2 million dwt. The Company also has three Product tankers that are chartered-in with options to purchase the vessels. The Company controls tonnage totaling 5.3 million dwt, including the owned fleet and the chartered-in fleet. General Maritime Corp. press release |
General Maritime Announces Filing of Form 12b-25;