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Overall upon completion of our debt modification plan, debt repayment requirements have been reduced by US$17,890 and US$9,250 for the years 2013 and 2014 respectively. Furthermore we have obtained a relaxation of financial covenants including minimum security cover ratio, maximum leverage, interest cover ratio and minimum net worth for more than 80% of our loan portfolio. During 2012 we have effected loan repayments of US$ 67,955 representing 24% of the outstanding debt in the beginning of the year. The loan modification agreements along with the accelerated repayments effected in 2012 decreases the Company's breakeven rates and provides an appropriate level of headroom within our banking covenants for the next two years providing for the fleet's efficient operation even with the current challenging market fundamentals. Acquisition of a Container vessel The Company has agreed the acquisition of M/V Gallia, a 2,500TEU geared container vessel, built in 1998 at Thyssen Shipyard. The purchase price is US$ 6,010 and the vessel will be delivered ex Drydocking with estimated delivery in May 2013. The vessel has already been chartered for 6-8 months and will start her employment immediately after the completion of the scheduled repairs. CEO Statement (amounts in US$'000): John Dragnis, Chief Executive Officer of the Company commented: For the year ended 31 December 2012 excluding all one-off non-cash items, the Company reported a net loss of US$ 16,826 or US$ 0.18 per share. Our EBITDA was US$ 24,285, while we reported a net loss of US$ 65,339, which was mainly due to a non-cash impairment loss of US$ 47,600, related to the write down of the carrying amounts of certain vessels to their estimated recoverable amount. In 2012, the dry market has experienced the worst recorded year in quarter of a century (BDI average 920p), dropping by 40% compared to 2011 (66% compared to 2010). Asset Values in response to poor earnings have bottomed out as well (in inflation adjusted terms). The container market remained under severe pressure for a fourth year with earnings remaining at depressed levels and close to all time low's; asset values for second hand vessels reduced further over the course of 2012 offering investment opportunities for the future. We retain our cautious view on the short-term performance of the markets while being optimistic for a recovery in the medium to long term. Already we have seen asset prices and rates bottoming out with slight upward trends. We expect that 2013 will allow us to employ our vessels at better terms than 2012. We are pleased to announce the completion of our debt modification plan, instigated by us, which accompanied the disposal of a major part of our older tonnage as part of our strategy to progressively deleverage the Company whilst preserving sufficient levels of liquidity and headroom within our banking covenants so that we can confidently trade through this difficult market. During 2012 we proceeded with accelerated loan repayments of US$ 67,955, which represent a 24% decrease in bank debt since the beginning of the year. Taking advantage of our liquidity headroom and the low asset prices prevailing at the market, we proceeded with the acquisition of MV Gallia, which is an EBITDA and cash flow accretive addition in our fleet. As part of our current strategy of maximising available liquidity the Board has reviewed the Company's dividend policy and has decided that it is prudent not to pay a 2012 final dividend. We will continue to closely monitor this position and remain committed to the maximisation of Shareholder Value. Management remains a large shareholder and a strong supporter in Goldenport which we feel guarantees its viability and future success. Despite the prevailing market conditions we retain high vessel utilisation levels, with no vessel in our fleet currently idle. Our modified loan profile, the fact that we have no further capital commitments, the stabilisation of both charter rates and asset values and our tight control of operational costs will enhance our cash reserves and position us to take advantage of the eventual market recovery. Fleet Developments: Vessels disposals (amounts in US$ '000) On 16 March 2012, the Company agreed the sale of the 52,315 DWT, 1989-built vessel "Alex D", to an unaffiliated third party. The sale was concluded at a net consideration of US$ 6,486 cash and the vessel was delivered to the new owners on 26 March 2012. The gain resulting from the sale of the vessel was US$ 3,397. On 9 May 2012, the Company agreed the sale of the 3,032 TEU, 1986-built vessel "MSC Finland", to an unaffiliated third party. The sale was concluded at a net consideration of US$ 7,010 cash and the vessel was delivered to the new owners on 24 May 2012. The gain resulting from the sale of the vessel was US$ 4,223. On 18 June 2012, the Company agreed the sale of the 52,266 DWT, 1990-built vessel "Lindos", to an unaffiliated third party. The sale was concluded at a net consideration of US$ 5,259 cash and the vessel was delivered to the new owners on 6 July 2012. The gain resulting from the sale of the vessel was US$ 1,502. On 10 October 2012, the Company agreed the sale of the 52,266 DWT, 1991-built vessel "Tilos", to an unaffiliated third party. The sale was concluded at a net consideration of US$ 5,704 cash and the vessel was delivered to the new owners on 31 October 2012. The loss resulting from the sale of the vessel was US$ 2,183. On 2 November 2012, the Company agreed the sale of the 3,720 TEU, 1988-built vessel "Pos Yantian", to an unaffiliated third party. The sale was concluded at a net consideration of US$ 7,619 cash and the vessel was delivered to the new owners on 14 November 2012. The gain resulting from the sale of the vessel was US$ 938. On 25 November 2012, the Company agreed the sale of the 52,266 DWT, 1992-built vessel "Limnos", to an unaffiliated third party. The sale was concluded at a net consideration of US$ 5,507 cash and the vessel was delivered to the new owners on 6 December 2012. The loss resulting from the sale of the vessel was US$ 2,663. On 30 November 2012, the Company agreed the sale of the 3,720 TEU, 1993-built vessel "Bosporus Bridge", to an unaffiliated third party. The sale was concluded at a net consideration of US$ 7,271 cash and the vessel was delivered to the new owners on 14 December 2012. The loss resulting from the sale of the vessel was US$ 3,803. Operational vessel acquisition (amounts in US$ '000) On 29 August 2012, the Company took delivery of the M/V 'Thira' (ex 'Conti Seattle'), a container vessel of 2,100 TEU built in 1997, which was acquired for US$ 5,162. Impairment As a result of the impairment testing performed, the Company concluded that an adjustment of the book value of its fleet was appropriate. An impairment loss of US$47,600 was recognised by the Group for the year ended 31 December 2012. This is a non-cash item and has no impact on our lending arrangements. The impairment loss for 2011 was US$ nil. Full report at: www.goldenportholdings.com Goldenport Holdings Inc. press release |
Final Results for the Year Ended