Hellenic Carriers reports final results for the year
ended 31 December 2012
Press Release 15 March 2013
Hellenic Carriers Limited, (“Hellenic” or the “Company”) (AIM: HCL), 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 Company is pleased to report today its
Final Results for the year ended 31 December 2012.
2012 FINANCIAL
• Revenue US$13.2 million (2011: US$33.2 million)
• EBITDA(1) negative US$0.2 million (2011: US$16.9 million EBITDA positive)
• Operating Loss US$9.4 million before non-cash items (2011: US$3.6 million Operating Profit)
• Net Loss US$14.2 million before non-cash items (2011: US$1.1 million)
• Non-cash impairment charge US$8.6 million (2011: US$29.3 million)
• Non-cash gain on sale of vessels US$2.1 million (2011: US$ nil)
• Net Loss US$20.7 million (2011: US$30.4 million)
• Gearing ratio(2) at 31.9% as of 31 December 2012 (30.2% as of 31 December 2011)
• Total cash including restricted cash US$47.7 million as of 31 December 2012 (US$48.0 million as of 31 December 2011)
• Reduction of Gross debt from US$88.2 million on 31 Dec 2011 to US$82.3 million on 31 Dec 2012 resulting in a net debt position of US$34.6 million from US$40.1 million on 31 Dec 2011
2012 OPERATIONAL
• Operation of 4.0 vessels on average compared to 5.0 vessels in 2011
• Time Charter Equivalent rate of US$7,414 (2011: US$17,369)
Management Commentary
The decrease in revenues for the year was attributed to the reduced number of vessels in the fleet and the depressed dry bulk freight rates. Although seaborne trade demand continued to grow in 2012, supported mainly by the need for raw materials from the developing countries, oversupply negatively affected rates in all dry bulk segments.
In 2012 the fleet renewal program continued: two of the older Panamax vessels were sold, while the option to use the sale proceeds within 2013 as debt financing towards the acquisition of modern second hand ships was secured from the lenders. The vessels were employed predominantly under short period time charters, avoiding commitment at low rates for the longer term. Tight cost control resulted in a reduction of both the daily vessel operating expenses as well as the general and administrative expenses. Preservation of cash was achieved, following agreements with the existing lenders to reduce the principal installments due in 2012 and 2013 and to extend the maturity of one of the facilities, whilst also extending the maturity of t he second facility in case of replacement of one of the ships sold.
Looking ahead, urbanization in the developing economies is an irreversible trend and this translates into continued demand for core raw materials which are the backbone of the dry bulk trade. At the same time, net fleet growth is expected to slow down in 2013 and especially in 2014 as the result of a diminishing order book and high scrapping levels, since about 13% of the global dry bulk fleet is over 20 years of age, whilst the current order book for del ivery in 2015 is negligible. Therefore, even though we anticipate a challenging market for 2013, we remain cautiously optimistic on the medium term prospects of our industry.
Since the market downturn in the end of 2008, we have taken steps ensuring that the Company is well prepared to endure difficult market conditions. We expe ct that such conditions will continue to prevail during 2013. However, thereafter with the bulk of the order book delivered and the growth prospects of the developing countries robust, we envisage an improvement in earnings. Our aim is that at that point in time the Company will be well positioned, with a bigger and more modern fleet, to capitalise on the improved market conditions.
(1) EBITDA has been calculated as follows: Operating profit + Depreciation + Depreciation of dry-docking costs + Impairment charge - Gain on sale of vessels - Other operating income
(2) Gearing ratio is defined as Net Debt to total capitalisation (debt, net of deferred financing fees less cash and cash equivalents to net debt and stockholders’ equity)
Full report at: www.hellenic-carriers.com
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 three vessels, comprising one Panamax, one Supramax and one Handymax with an aggregate carrying capacity of 169,116 dwt and a weighted average age of 15.5 years. Two new building vessels currently under construction, both Kamsarmaxes with an aggregate carrying capacity of about 164,000 dwt are scheduled for delivery within 2013.
Hellenic Carriers is listed on the AIM of the London Stock Exchange under ticker HCL.
Hellenic Carriers Limited press release