Financial Highlights for the Second Half of the Year Ended
- Revenues of
$201 .2 million - Gross profit of
$15 .9 million - Loss for the period and attributable to owners of the Company of
$10 .9 million, or$0.56 per ordinary share - Adjusted net loss of
$9 .2 million, or$0.47 per ordinary share(2) - Adjusted EBITDA of
$24 .8 million(2) - Handysize and supramax/ultramax TCE per day of
$10,182 and$13,849 , respectively(2)
Financial Highlights for the Full Year Ended
- Revenues of
$387 .1 million - Gross profit of
$39 .4 million - Loss for the period and attributable to owners of the Company of
$9 .6 million, or$0.49 per ordinary share - Adjusted net loss of
$7 .9 million, or$0.41 per ordinary share(2) - Adjusted EBITDA of
$64 .7 million(2) - Handysize and supramax/ultramax TCE per day of
$10,351 and$13,908 , respectively(2) - Period end cash and cash equivalents of
$55.2 million and restricted cash of$8.7 million
(1) Results are presented on a semi-annual basis due to the Company transitioning from quarterly reporting.
(2) Adjusted EBITDA, Adjusted net income/(loss) and TCE per day are non-GAAP financial measures. For the definitions of these non-GAAP financial measures and the reconciliation of these measures to the most directly comparable financial measure calculated and presented in accordance with GAAP, please refer to the definitions and reconciliations in “Non-GAAP Financial Measures” at the end of this press release.
Operational & Corporate Highlights for the Second Half of the Year ended
- On
July 11, 2023 , we exercised the option to extend the firm charter-in period of the 2016-built supramax bulk carrier IVSWindsor for 12 months. - On
July 13, 2023 , we announced an EGM to be held onAugust 10, 2023 to propose a capital reduction which would result in a total cash distribution to shareholders up to a maximum of$45.0 million . - On
July 17, 2023 , we exercised the option to extend the firm charter-in period of the 2014-built supramax bulk carrier IVS Naruo for 12 months. - On
July 18, 2023 , we entered into a contract to purchase the 2024-built handysize bulk carrier newbuilding for a price of$33.8 million (before costs) fromGood Viscount (MI) Ltd (a wholly owned subsidiary of our parent company Taylor Maritime Investments Limited (“TMI”). The acquisition, which is at an agreed price consistent with two independent broker valuations obtained in connection with the transaction, was unanimously approved by the disinterested members of the Board. - On
July 24, 2023 , we entered into a contract to purchase the 2011-built handysize bulk carrier,Steady Sarah , for a price of$15.0 million (before costs) fromBilly (MI) Ltd (a wholly owned subsidiary of our parent company TMI). The acquisition, which is at an agreed price consistent with three independent broker valuations obtained in connection with the transaction, was unanimously approved by the disinterested members of the Board. We took delivery of the handysize bulk carrier onJuly 28, 2023 . - On
August 4, 2023 , we delivered the 2011-built handysize bulk carrier, IVS Orchard, to her new owners. - On
August 10, 2023 , a special resolution was passed at an EGM for a capital reduction which would result in a total cash distribution up to a maximum of$45.0 million . The Company does not intend to declare any further dividends for 2023 in light of the cash distribution. - On
August 24, 2023 , we entered into an en-bloc deal to sell the 2015-built ultramax bulk carrier, IVSBosch Hoek and the 2016-built ultramax bulk carrier, IVS Hayakita, for$46.5 million (before costs). IVS Hayakita is a chartered-in vessel with a purchase option which we exercised onMay 25, 2023 . The vessels were delivered to the new owners onSeptember 19 andSeptember 25, 2023 , respectively and approximately$10.0 million debt was repaid on the Company’s$114.1 million senior secured credit facility. - On
September 1, 2023 , we exercised our option to extend the firm charter-in period of the 2020-built supramax bulk carrier, IVSPebble Beach for 12 months at a pre-agreed fixed rate, starting fromOctober 22, 2023 . - On
September 14, 2023 , we entered into a contract to sell the 2013-built handysize bulk carrier, IVS Merlion, for$11.6 million (before costs) with delivery to her new owners onNovember 29, 2023 . This vessel is unencumbered. - On
September 25, 2023 , we entered into two sale and purchase agreements to acquire the entire issued share capital ofTamar Ship Management Limited andTaylor Maritime Management Limited for a total consideration of approximately$11.8 million (before costs). The closing was subject to closing conditions. - On
September 27, 2023 , we entered into a contract to sell the 2013-built handysize bulk carrier, IVS Raffles, for$11.6 million (before costs) with delivery to her new owners onNovember 16, 2023 . This vessel is unencumbered. - On
September 29, 2023 , we announced that the fully paid-up share capital would be reduced by$32.4 million and the Company would distribute cash in two tranches; the first distribution of$1.01598 per ordinary share, which was paid onOctober 26, 2023 , and the second distribution of$0.63193 per ordinary share, paid onDecember 11, 2023 , to all shareholders of record as ofOctober 20, 2023 . - On
October 3, 2023 , we announced that the completion conditions included in the two sale and purchase agreements for the acquisition of the entire issued share capital ofTamar Ship Management Limited andTaylor Maritime Management Limited had been met. The acquisition became legally effective onOctober 3, 2023 . - On
November 7, 2023 , we exercised our option to extend the firm charter-in period of the 2020-built supramax bulk carrier, IVS Atsugi for 12 months at a pre-agreed fixed rate, starting from approximatelyDecember 30, 2023 . - On
November 13, 2023 , we exercised the purchase option on the 2014-built supramax bulk carrier IVS Naruo for approximately$12.0 million with delivery expected to take place on or beforeJune 30, 2024 . We can provide no assurances that the delivery will take place by that time or at all. - On
November 16, 2023 , we delivered the 2013-built handysize bulk carrier, IVS Raffles, to her new owners. - On
November 29, 2023 , we delivered the 2013-built handysize bulk carrier, IVS Merlion, to her new owners. - On
December 7, 2023 , we announced the resignation of Mr.Charles Goodson Maltby as a non-executive director of the Company with effect fromDecember 31, 2023 and the formation of a newSafety and Technical Committee . - On
December 11, 2023 , we completed the second tranche of the share capital reduction with a distribution of$0.63193 per ordinary share to all shareholders on record as ofOctober 20, 2023 . - On
December 11, 2023 , we entered into agreements to charter-in two ultramax drybulk vessels. The vessels are expected to be delivered in Q1 2024 and Q2 2024 and will be chartered-in for a minimum of one year. - On
December 22, 2023 , we extended the firm charter-in period of the 2014-built supramax bulk carrierIVS Crimson Creek for approximately 12 to 15 months.
Recent Developments
- On
January 17, 2024 , we entered into a contract to sell the 2007-built handysize bulk carrier, IVS Kingbird, for$10.4 million (before costs), effectively a 1.1% premium to carrying value with delivery to her new owners onFebruary 1, 2024 . This vessel is unencumbered. - On
February 6, 2024 , we took delivery of the HB Imabari, a handysize bulk carrier built inJapan . We finalized and drew down$20.2 million in financing with IYO Bank in conjunction with the delivery. - On
February 23, 2024 , we entered into a contract to sell the 2012-built handysize bulk carrier, IVS Ibis, for$11.7 million (before costs) with delivery to her new owners planned on or aboutMarch 21, 2024 . We can provide no assurances that the delivery will take place by that time or at all. - As of
February 22, 2024 , we have contracted the following TCE per day for the first quarter of 2024 (1):- Handysize: approximately 1,274 operating days(2) at an average TCE per day of approximately
$11,875 - Supramax/ultramax: approximately 1,004 operating days(2) at an average TCE per day of approximately
$14,795
- Handysize: approximately 1,274 operating days(2) at an average TCE per day of approximately
(1) TCE per day is a non-GAAP financial measure. For the definition of this non-GAAP financial measure and the reconciliation of this measure to the most directly comparable financial measure calculated and presented in accordance with GAAP, please refer to the definitions and reconciliations in “Non-GAAP Financial Measures” at the end of this press release.
(2) Operating days: the number of available days in the relevant period a vessel is controlled by us after subtracting the aggregate number of days that the vessel is off-hire due to a reason other than scheduled drydocking and special surveys, including unforeseen circumstances. We use operating days to measure the aggregate number of days in a relevant period during which vessels are actually available to generate revenue.
CEO Commentary
“Following TMI’s acquisition in
Unaudited Results for the Six Months Ended
Revenue was
Our handysize total revenue and supramax/ultramax total revenue was
Handysize TCE per day was
Cost of sales was
Our handysize segment and supramax/ultramax segment cost of sales was
Handysize voyage expenses and supramax/ultramax voyage expenses were
Gross profit was
Other operating expense was
Administrative expense was
Interest income was
Interest expense was
Income tax expense was
Loss for the six months ended
Unaudited Results for the Full Years Ended
Revenue was
Our handysize total revenue and supramax/ultramax total revenue was
Handysize TCE per day was
Cost of sales was
In the drybulk business, our handysize segment and supramax/ultramax segment cost of sales was
Our handysize voyage expenses and supramax/ultramax voyage expenses was
Gross profit was
Other operating (expense) income was an expense of
Administrative expense was
Interest income was
Interest expense was
Income tax expense was
Loss for the year ended
Net cash flows generated from operating activities was
As of
About
Fleet Table
The following table sets forth certain summary information regarding our fleet as of the date of this press release.
Drybulk Carriers — Owned Fleet (18 Vessels)
Built | Country of Build | DWT | Type of Employment | |||||
Handysize – Eco | ||||||||
IVS Tembe | 2016 | 37,740 | IVS Commercial(1) | |||||
IVS Sunbird | 2015 | 33,400 | ||||||
IVS Thanda | 2015 | 37,720 | IVS Commercial(1) | |||||
IVS Phinda | 2014 | 37,720 | IVS Commercial(1) | |||||
IVS Sparrowhawk | 2014 | 33,420 | ||||||
Handysize | ||||||||
IVS Ibis(3) | 2012 | 28,240 | ||||||
IVS Kinglet(2) | 2011 | 33,130 | ||||||
IVS Magpie(2) | 2011 | 28,240 | ||||||
IVS Knot(2) | 2010 | 33,140 | ||||||
IVS Merlin | 2011 | 38,468 | ||||||
HB Imabari | 2024 | 39,640 | IVS Commercial(1) | |||||
Supramax/Ultramax – Eco | ||||||||
IVS Prestwick | 2019 | 61,300 | ||||||
IVS Okudogo | 2019 | 61,330 | ||||||
IVS | 2019 | 61,470 | ||||||
2017 | 60,490 | |||||||
IVS Gleneagles | 2016 | 58,070 | ||||||
IVS North Berwick | 2016 | 60,480 | ||||||
IVS Wentworth | 2015 | 58,090 |
Drybulk Carriers — Long-Term Charter-In Fleet (7 Vessels)
Built | Country of Build | DWT | Charter-in Period (4) | Purchase Option Price (Millions) | Type of Employment | ||||||||
Handysize – Eco | |||||||||||||
IVS Kestrel(5) | 2014 | 32,770 | 2023-24 | $ | - | ||||||||
Supramax/Ultramax – Eco | |||||||||||||
2021 | 64,230 | 2024-25 | $ | - | |||||||||
IVS Atsugi(7) | 2020 | 62,660 | 2023-24 | $ | 25.2 | ||||||||
IVS | 2020 | 62,660 | 2023-24 | $ | 25.2 | ||||||||
IVS | 2016 | 60,280 | 2023-26 | $ | - | ||||||||
2014 | 57,950 | 2023-24 | $ | - | |||||||||
IVS Naruo(11) | 2014 | 60,030 | 2023-24 | $ | ~12.0 |
(1) | Commercially managed by |
(2) | IVS Knot, IVS Kinglet, IVS Magpie and IVS |
(3) | IVS Ibis has been contracted for sale and is planned to be delivered to the new owners on or about |
(4) | Expiration date range represents the earliest and latest re-delivery periods due to extension options. |
(5) | Chartered-in until Q2 2024 with two one-year options to extend. |
(6) | Chartered-in until Q4 2024 with one-year option to extend. |
(7) | Chartered-in until Q4 2024. The purchase option is exercisable beginning in Q4 2022 and any time thereafter to expiry date, subject to contract terms and conditions. The purchase option price reduces with a linear depreciation of |
(8) | Chartered-in until Q3 2024. The purchase option is exercisable beginning in Q3 2022 and any time thereafter to expiry date, subject to contract terms and conditions. The purchase option price reduces with a linear depreciation of |
(9) | Chartered-in until Q3 2024 with one one-year option and one nine-month option to extend. |
(10) | Chartered-in for a period of 12 to 15 months until |
(11) | Chartered-in until Q4 2024. The purchase option was exercised in |
Unaudited Segment Information
Six months ended | Year ended | |||||||||||
(In thousands of U.S. dollars) | 2023 | 2022 | 2023 | 2022 | ||||||||
Drybulk Carriers Business | ||||||||||||
Handysize Segment | ||||||||||||
Revenue | $ | 79,921 | $ | 71,119 | $ | 151,768 | $ | 159,934 | ||||
Cost of sales | (77,597 | ) | (48,258 | ) | (142,522 | ) | (93,418 | ) | ||||
Gross Profit | 2,324 | 22,861 | 9,246 | 66,516 | ||||||||
Supramax/Ultramax Segment | ||||||||||||
Revenue | $ | 118,497 | $ | 117,473 | $ | 232,500 | $ | 268,463 | ||||
Cost of sales | (109,187 | ) | (80,451 | ) | (208,225 | ) | (172,588 | ) | ||||
Gross Profit | 9,310 | 37,022 | 24,275 | 95,875 |
Selected Historical and Statistical Data of Our Operating Fleet
Set forth below are selected historical and statistical data of our operating fleet for the six months ended
Six months ended | Year ended | |||||||||||
(In thousands of U.S. dollars) | 2023 | 2022 | 2023 | 2022 | ||||||||
Drybulk Carriers Business | ||||||||||||
Handysize Segment | ||||||||||||
Calendar days(1) | 3,296 | 3,051 | 6,196 | 6,091 | ||||||||
Available days(2) | 3,251 | 2,967 | 6,124 | 5,980 | ||||||||
Operating days(3) | 3,204 | 2,874 | 6,044 | 5,826 | ||||||||
Owned fleet operating days(4) | 2,228 | 2,583 | 4,776 | 5,210 | ||||||||
Long-term charter-in days(5) | 184 | - | 203 | - | ||||||||
Short-term charter-in days(6) | 792 | 291 | 1,065 | 616 | ||||||||
Fleet utilization(7) | 98.6 | % | 96.9 | % | 98.7 | % | 97.4 | % | ||||
TCE per day(8) | $ | 10,182 | $ | 19,161 | $ | 10,351 | $ | 22,115 | ||||
Vessel operating costs per day(9) | $ | 5,650 | $ | 6,086 | $ | 5,841 | $ | 5,776 | ||||
Supramax/Ultramax Segment | ||||||||||||
Calendar days(1) | 3,324 | 3,845 | 6,573 | 8,210 | ||||||||
Available days(2) | 3,286 | 3,778 | 6,496 | 8,143 | ||||||||
Operating days(3) | 3,253 | 3,735 | 6,390 | 8,063 | ||||||||
Owned fleet operating days(4) | 1,352 | 1,719 | 2,930 | 3,345 | ||||||||
Long-term charter-in days(5) | 1,127 | 1,110 | 2,349 | 2,343 | ||||||||
Short-term charter-in days(6) | 774 | 906 | 1,111 | 2,375 | ||||||||
Fleet utilization(7) | 99.0 | % | 98.9 | % | 98.4 | % | 99.0 | % | ||||
TCE per day(8) | $ | 13,849 | $ | 23,685 | $ | 13,908 | $ | 25,788 | ||||
Vessel operating costs per day(9) | $ | 5,624 | $ | 5,260 | $ | 5,616 | $ | 5,297 | ||||
(1) | Calendar days: total calendar days the vessels were in our possession for the relevant period. |
(2) | Available days: total number of calendar days a vessel is in our possession for the relevant period after subtracting off-hire days for scheduled drydocking and special surveys. We use available days to measure the number of days in a relevant period during which vessels should be available for generating revenue. |
(3) | Operating days: the number of available days in the relevant period a vessel is controlled by us after subtracting the aggregate number of days that the vessel is off-hire due to a reason other than scheduled drydocking and special surveys, including unforeseen circumstances. We use operating days to measure the aggregate number of days in a relevant period during which vessels are actually available to generate revenue. |
(4) | Owned fleet operating days: the number of operating days in which our owned fleet is operating for the relevant period. |
(5) | Long-term charter-in days: the number of operating days in which our long-term charter-in fleet is operating for the relevant period. We regard chartered-in vessels as long-term charters if we previously owned the vessels or the period of the charter we initially commit to is 12 months or more. Once we have included such chartered-in vessels in our fleet, we will continue to regard them as part of our fleet until the end of their chartered-in period, including any period that the charter has been extended under an option, even if at a given time the remaining period of their charter may be less than 12 months. |
(6) | Short-term charter-in days: the number of operating days for which we have chartered-in third party vessels for durations of less than one year for the relevant period. |
(7) | Fleet utilization: the percentage of time that vessels are available for generating revenue, determined by dividing the number of operating days during a relevant period by the number of available days during that period. We use fleet utilization to measure a company’s efficiency in technically managing its vessels. |
(8) | TCE per day: vessel revenue less voyage expenses during a relevant period divided by the number of operating days during the period. The number of operating days used to calculate TCE revenue per day includes the proportionate share of our joint ventures’ operating days and includes charter-in days. Please see “Non-GAAP Financial Measures” above for a discussion of TCE revenue and a reconciliation of TCE revenue to revenue. |
(9) | Vessel operating costs per day: vessel operating costs per day represents vessel operating costs divided by the number of calendar days for owned vessels during the period. The vessel operating costs and the number of calendar days used to calculate vessel operating costs per day includes the proportionate share of our joint ventures’ vessel operating costs and calendar days and excludes charter-in costs and charter-in days. Please see “Non-GAAP Financial Measures” below for a discussion of vessel operating costs per day. |
Unaudited Condensed Consolidated Statement of Financial Position
US$’000 | US$’000 | ||||
ASSETS | |||||
Current assets | |||||
Cash and bank balances | 59,331 | 52,228 | |||
Trade receivables | 6,702 | 11,290 | |||
Contract assets | 2,906 | 1,313 | |||
Other receivables and prepayments | 18,070 | 25,066 | |||
Due from related parties | 27 | - | |||
Derivative financial instruments | 176 | 51 | |||
Inventories | 10,755 | 15,278 | |||
Tax recoverable | 109 | - | |||
Total current assets | 98,076 | 105,226 | |||
Non-current assets | |||||
Restricted cash | 4,560 | 4,342 | |||
Ships, property, plant and equipment | 303,192 | 407,552 | |||
Right-of-use assets | 35,244 | 26,039 | |||
Interest in joint ventures | 8 | 8 | |||
Derivative financial instruments | 423 | - | |||
Intangible assets | 4,907 | 186 | |||
7,924 | - | ||||
Other receivables and prepayments | 1,918 | 860 | |||
Other investments | 3,613 | 3,714 | |||
Deferred tax assets | 1,019 | 1,304 | |||
Total non-current assets | 362,808 | 444,005 | |||
Total assets | 460,884 | 549,231 | |||
LIABILITIES AND EQUITY | |||||
Current liabilities | |||||
Trade and other payables | 30,695 | 29,599 | |||
Contract liabilities | 2,987 | 4,369 | |||
Due to joint ventures / related parties | 388 | 43 | |||
Lease liabilities | 32,432 | 22,058 | |||
Bank loans and other borrowings | 18,578 | 33,330 | |||
Retirement benefit obligation | 125 | 125 | |||
Derivative financial instruments | 712 | 138 | |||
Provisions | 277 | 592 | |||
Income tax payable | 430 | 423 | |||
Total current liabilities | 86,624 | 90,677 | |||
Non-current liabilities | |||||
Trade and other payables | 1,153 | 140 | |||
Lease liabilities | 1,373 | 4,055 | |||
Bank loans and other borrowings | 123,639 | 165,638 | |||
Deferred tax liabilities | 761 | - | |||
Retirement benefit obligation | 1,194 | 1,272 | |||
Derivative financial instruments | 20 | - | |||
Total non-current liabilities | 128,140 | 171,105 | |||
Capital and reserves | |||||
Share capital | 290,193 | 320,683 | |||
Other equity and reserves | (24,508 | ) | (24,686 | ) | |
Accumulated losses | (19,565 | ) | (8,548 | ) | |
Total equity | 246,120 | 287,449 | |||
Total equity and liabilities | 460,884 | 549,231 | |||
Unaudited Condensed Consolidated Statement of Profit or Loss
Six months ended | Year ended | |||||||||||
(In thousands of | 2023 | 2022 | 2023 | 2022 | ||||||||
Revenue | $ | 201,246 | $ | 188,592 | $ | 387,096 | $ | 460,460 | ||||
Cost of sales | ||||||||||||
Voyage expenses | (38,807 | ) | (44,715 | ) | (74,614 | ) | (91,104 | ) | ||||
Vessel operating costs | (19,566 | ) | (24,799 | ) | (43,001 | ) | (46,901 | ) | ||||
Charter hire costs | (19,636 | ) | (24,393 | ) | (26,952 | ) | (58,926 | ) | ||||
Depreciation of ships, drydocking and plant and equipment– owned assets | (11,039 | ) | (15,024 | ) | (24,824 | ) | (30,498 | ) | ||||
Depreciation of ships and ship equipment – right-of-use assets | (14,732 | ) | (18,149 | ) | (30,343 | ) | (35,676 | ) | ||||
Other expenses | (481 | ) | (75 | ) | (555 | ) | (696 | ) | ||||
Cost of ship sale | (81,097 | ) | 28 | (147,440 | ) | (29,897 | ) | |||||
Gross profit | 15,888 | 61,465 | 39,367 | 166,762 | ||||||||
Other operating (expenses) income | (1,477 | ) | (3,442 | ) | (1,352 | ) | 341 | |||||
Administrative expense | (18,644 | ) | (32,179 | ) | (32,653 | ) | (48,069 | ) | ||||
Share of losses of joint ventures | - | (6 | ) | - | (5 | ) | ||||||
Interest income | 1,814 | 1,959 | 2,798 | 2,228 | ||||||||
Interest expense | (8,059 | ) | (9,759 | ) | (17,099 | ) | (17,133 | ) | ||||
(Loss) profit before taxation | (10,478 | ) | 18,038 | (8,939 | ) | 104,124 | ||||||
Income tax expense | (391 | ) | (466 | ) | (683 | ) | (757 | ) | ||||
(Loss) profit for the period | (10,869 | ) | 17,572 | (9,622 | ) | 103,367 | ||||||
(Loss) profit per share attributable to owners of the Company: | ||||||||||||
Basic | $ | (0.56 | ) | $ | 0.92 | $ | (0.49 | ) | $ | 5.45 | ||
Diluted | $ | (0.56 | ) | $ | 0.92 | $ | (0.49 | ) | $ | 5.45 | ||
Unaudited Condensed Consolidated Statement of Cash Flows
For the twelve months ended 31 December | 2023 | 2022 | |||
US$’000 | US$’000 | ||||
Operating activities | |||||
(Loss) profit for the period | (9,622 | ) | 103,367 | ||
Adjustments for: | |||||
Share of losses of joint ventures | - | 5 | |||
Gain on disposal of ships | (10,666 | ) | (84 | ) | |
Gain on disposal of plant and equipment, furniture and fittings and motor vehicles | (12 | ) | (36 | ) | |
Gain on disposal of right-of-use assets | (3 | ) | - | ||
Depreciation and amortisation | 57,654 | 67,275 | |||
Impairment loss (reversal of impairment) recognised on ships | 2,000 | (1,707 | ) | ||
Impairment loss recognised on right-of-use assets | - | 985 | |||
Impairment loss (reversal of impairment) recognised on financial assets | 53 | (45 | ) | ||
Provision for onerous contracts reversed | (315 | ) | (427 | ) | |
Reversal of impairment loss recognised on asset under construction | (310 | ) | - | ||
Recognition of share-based payments expense | - | 8,134 | |||
Net foreign exchange gain | (485 | ) | (171 | ) | |
Interest expense | 17,099 | 17,133 | |||
Interest income | (2,798 | ) | (2,228 | ) | |
Components of defined benefit costs recognized in profit or loss | 146 | 159 | |||
Income tax expense | 683 | 757 | |||
Operating cash flows before movements in working capital and ships | 53,424 | 193,117 | |||
Inventories | 4,520 | (1,371 | ) | ||
Trade receivables, other receivables and prepayments | 11,316 | (5,556 | ) | ||
Contract assets | (1,593 | ) | 2,373 | ||
Trade and other payables | (8,230 | ) | (5,515 | ) | |
Contract liabilities | (1,382 | ) | (4,072 | ) | |
Due to related parties | 458 | 49 | |||
Operating cash flows before movement in ships | 58,513 | 179,025 | |||
Capital expenditure on ships | (38,076 | ) | (9,306 | ) | |
Proceeds from disposal of ships | 152,011 | 29,509 | |||
Net cash generated from operations | 172,448 | 199,228 | |||
Interest paid | (16,938 | ) | (14,553 | ) | |
Interest received | 2,363 | 1,786 | |||
Income tax paid | (2,750 | ) | (432 | ) | |
Net cash flows generated from operating activities | 155,123 | 186,029 | |||
Investing activities | |||||
Repayment of loans and amount due from joint ventures | - | 39 | |||
Purchase of plant and equipment | (652 | ) | (113 | ) | |
Purchase of intangible assets | (212 | ) | (126 | ) | |
Proceeds from disposal of plant and equipment | 16 | 298 | |||
Payment for acquisition of subsidiary, net of cash acquired | 2,048 | - | |||
Net cash flows generated from investing activities | 1,200 | 98 |
Financing activities | |||||
Return of share capital | (32,440 | ) | - | ||
Payment of principal portion of bank loans and other borrowings | (56,912 | ) | (49,850 | ) | |
Principal repayments on lease liabilities | (58,276 | ) | (56,930 | ) | |
Restricted cash | 1,347 | (485 | ) | ||
Dividends paid | (1,169 | ) | (135,877 | ) | |
Net cash flows used in financing activities | (147,450 | ) | (243,142 | ) | |
Net increase (decrease) in cash and cash equivalents | 8,873 | (57,015 | ) | ||
Cash and cash equivalents at the beginning of the period | 46,561 | 104,243 | |||
Effect of exchange rate changes on the balance of cash held in foreign currencies | (205 | ) | (667 | ) | |
Cash and cash equivalents at the end of the period | 55,229 | 46,561 | |||
Non-GAAP Financial Measures
The financial information included in this press release includes certain “non-GAAP financial measures” as such term is defined in
TCE Revenue and TCE per day
TCE revenue is defined as vessel revenue less voyage expenses. Such TCE revenue, divided by the number of our operating days during the period, is TCE per day. Vessel revenue and voyage expenses as reported for our operating segments include a proportionate share of vessel revenue and voyage expenses attributable to our joint ventures based on our proportionate ownership of the joint ventures for the period the joint venture existed during the relevant period. The number of operating days used to calculate TCE per day also includes the proportionate share of our joint ventures’ operating days for the period the joint venture existed during the relevant period and also includes charter-in days.
TCE per day is a common shipping industry performance measure used primarily to compare daily earnings generated by vessels on time charters with daily earnings generated by vessels on voyage charters, because charter hire rates for vessels on voyage charters have to cover voyage expenses and are generally not expressed in per-day amounts while charter hire rates for vessels on time charters do not cover voyage expenses and generally are expressed in per day amounts.
Below is a reconciliation from revenue to TCE revenue for the six month periods ended
Six months ended | ||||||||||||||||||
2023 | 2022 | |||||||||||||||||
(In thousands of U.S. dollars) | Revenue | Voyage Expenses | TCE Revenue | Revenue | Voyage Expenses | TCE Revenue | ||||||||||||
Vessel revenue | ||||||||||||||||||
Handysize | 45,399 | (12,776 | ) | 32,623 | 70,887 | (15,817 | ) | 55,070 | ||||||||||
Supramax/ultramax | 71,081 | (26,031 | ) | 45,050 | 117,362 | (28,898 | ) | 88,464 | ||||||||||
Ship sale revenue | 81,900 | - | ||||||||||||||||
Other revenue | 2,866 | 343 | ||||||||||||||||
Revenue | 201,246 | 188,592 |
Below is a reconciliation from revenue to TCE revenue for the twelve month periods ended
Year ended | ||||||||||||||||||
2023 | 2022 | |||||||||||||||||
(In thousands of U.S. dollars) | Revenue | Voyage Expenses | TCE Revenue | Revenue | Voyage Expenses | TCE Revenue | ||||||||||||
Vessel revenue | ||||||||||||||||||
Handysize | 87,918 | (25,355 | ) | 62,563 | 159,524 | (30,683 | ) | 128,841 | ||||||||||
Supramax/ultramax | 138,128 | (49,259 | ) | 88,869 | 268,352 | (60,420 | ) | 207,932 | ||||||||||
Other | - | 2,082 | ||||||||||||||||
Ship sale revenue | 158,105 | 29,981 | ||||||||||||||||
Other revenue | 2,945 | 521 | ||||||||||||||||
Revenue | 387,096 | 460,460 |
Vessel operating costs per day
Vessel operating costs per day represents vessel operating costs divided by the number of calendar days for owned vessels during the period. The vessel operating costs and the number of calendar days used to calculate vessel operating costs per day includes the proportionate share of our joint ventures’ vessel operating costs and calendar days for the period the joint venture existed during the relevant period and excludes charter-in costs and charter-in days.
Vessel operating costs per day is a non-GAAP performance measure commonly used in the shipping industry to provide an understanding of the daily technical management costs relating to the running of owned vessels.
EBITDA and Adjusted EBITDA
EBITDA is defined as earnings before income tax expense, interest income, interest expense, share of profits (losses) of joint ventures and depreciation and amortization. Adjusted EBITDA is EBITDA adjusted to exclude the items set forth in the table below, which represent certain non-operating or other items that we believe are not indicative of the ongoing performance of our core operations.
EBITDA and Adjusted EBITDA are used by analysts in the shipping industry as common performance measures to compare results across peers. EBITDA and Adjusted EBITDA are not items recognized by IFRS, and should not be considered in isolation or used as alternatives to profit for the period or any other indicator of our operating performance.
Our presentation of EBITDA and Adjusted EBITDA is intended to supplement investors’ understanding of our operating performance by providing information regarding our ongoing performance that exclude items we believe do not directly affect our core operations and enhancing the comparability of our ongoing performance across periods. Our management considers EBITDA and Adjusted EBITDA to be useful to investors because such performance measures provide information regarding the profitability of our core operations and facilitate comparison of our operating performance to the operating performance of our peers. Additionally, our management uses EBITDA and Adjusted EBITDA as measures when reviewing our operating performance. While we believe these measures are useful to investors, the definitions of EBITDA and Adjusted EBITDA used by us may not be comparable to similar measures used by other companies.
The table below presents the reconciliation between (loss) profit for the period to EBITDA and Adjusted EBITDA for the six month periods ended
Six months ended | Year ended | |||||||||||
(In thousands of U.S. dollars) | 2023 | 2022 | 2023 | 2022 | ||||||||
(Loss) profit for the period | $ | (10,869 | ) | $ | 17,572 | $ | (9,622 | ) | $ | 103,367 | ||
Adjusted for: | ||||||||||||
Income tax expense | 391 | 466 | 683 | 757 | ||||||||
Interest income | (1,814 | ) | (1,959 | ) | (2,798 | ) | (2,228 | ) | ||||
Interest expense | 8,059 | 9,759 | 17,099 | 17,133 | ||||||||
Share of losses of joint ventures | - | 6 | - | 5 | ||||||||
Depreciation and amortization | 27,299 | 33,732 | 57,654 | 67,275 | ||||||||
EBITDA | 23,066 | 59,576 | 63,016 | 186,309 | ||||||||
Adjusted for | ||||||||||||
Impairment (reversal of impairment) recognized on ships | 2,000 | 2,366 | 2,000 | (1,707 | ) | |||||||
Impairment loss recognized on right-of-use assets | - | 985 | - | 985 | ||||||||
Tender offer and related expenses | - | 10,307 | - | 10,307 | ||||||||
Reversal of impairment loss recognized on asset under construction | (310 | ) | - | (310 | ) | - | ||||||
Share-based compensation | - | 6,742 | - | 8,134 | ||||||||
Adjusted EBITDA | 24,756 | 79,976 | 64,706 | 204,028 |
Adjusted net income and Adjusted Earnings per share
Adjusted net income is defined as profit for the period attributable to the owners of the Company adjusted for reversal of impairment loss recognized on ships, impairment loss recognized on goodwill and intangibles, reversal of impairment loss recognized on right-of-use assets, impairment loss on net disposal group, loss on disposal of business, share based compensation and fees incurred for shareholder-related transactions. Adjusted Earnings per share represents this figure divided by the weighted average number of ordinary shares outstanding for the period.
Adjusted net income is used by management for forecasting, making operational and strategic decisions, and evaluating current company performance. It is also one of the inputs used to calculate the variable amount that will be returned to shareholders in the form of quarterly dividends and/or share repurchases. Adjusted net income is not recognized by IFRS, and should not be considered in isolation or used as alternatives to profit for the period or any other indicator of our operating performance.
Our presentation of Adjusted net income is intended to supplement investors’ understanding of our operating performance by providing information regarding our ongoing performance that exclude items we believe do not directly affect our core operations and enhancing the comparability of our ongoing performance across periods. We consider Adjusted net income to be useful to management and investors because it eliminates items that are unrelated to the overall operating performance and that may vary significantly from period to period. Identifying these elements will facilitate comparison of our operating performance to the operating performance of our peers. The definitions of Adjusted net income used by us may not be comparable to similar measures used by other companies.
The table below presents the reconciliation between (loss) profit for the period attributable to the owners of the Company to Adjusted net income for the six month periods ended
Six months ended | Year ended | |||||||||||
(In thousands of U.S. dollars) | 2023 | 2022 | 2023 | 2022 | ||||||||
(Loss) profit for the period | $ | (10,869 | ) | $ | 17,572 | $ | (9,622 | ) | $ | 103,367 | ||
Adjusted for: | ||||||||||||
Impairment (reversal of impairment) loss recognized on ships | 2,000 | 2,366 | 2,000 | (1,707 | ) | |||||||
Impairment loss recognized on right-of-use assets | - | 985 | - | 985 | ||||||||
Tender offer and related expenses | - | 10,307 | - | 10,307 | ||||||||
Reversal of impairment loss recognized on asset under construction | (310 | ) | - | (310 | ) | - | ||||||
Share based compensation | - | 6,742 | - | 8,134 | ||||||||
Adjusted net (loss) income | (9,179 | ) | 37,972 | (7,932 | ) | 121,086 | ||||||
Weighted average number of shares on which the profit per share and adjusted earnings per share has been calculated | 19,575,317 | 19,078,551 | 19,524,087 | 18,949,972 | ||||||||
Basic (loss) profit per share | $ | (0.56 | ) | $ | 0.92 | $ | (0.49 | ) | $ | 5.45 | ||
Basic adjusted (loss) earnings per share | $ | (0.47 | ) | $ | 1.99 | $ | (0.41 | ) | $ | 6.39 |
Headline earnings and Headline earnings per share
Headline earnings for the period represents profit for the period attributable to owners of the Company adjusted for the re-measurements that are more closely aligned to the operating or trading results as set forth below, and Headline earnings per share represents this figure divided by the weighted average number of ordinary shares outstanding for the period.
The table below presents a reconciliation between (loss) profit for the period attributable to owners of the Company to Headline earnings for the six month periods ended
Six months ended | Year ended | |||||||||||
(In thousands of U.S. dollars, except per share data) | 2023 | 2022 | 2023 | 2022 | ||||||||
(Loss) profit for the period | $ | (10,869 | ) | $ | 17,572 | $ | (9,622 | ) | $ | 103,367 | ||
Adjusted for: | ||||||||||||
Impairment (reversal of impairment) loss recognized on ships | 2,000 | 2,366 | 2,000 | (1,707 | ) | |||||||
Impairment loss recognized on right-of-use assets | - | 985 | - | 985 | ||||||||
Reversal of impairment loss recognized on asset under construction | (310 | ) | - | (310 | ) | - | ||||||
Headline (loss) earnings | (9,179 | ) | 20,923 | (7,932 | ) | 102,645 | ||||||
Weighted average number of shares on which the profit per share and headline earnings per share has been calculated | 19,575,317 | 19,078,551 | 19,524,087 | 18,949,972 | ||||||||
Basic (loss) profit per share | $ | (0.56 | ) | $ | 0.92 | $ | (0.49 | ) | $ | 5.45 | ||
Basic headline (loss) earnings per share | $ | (0.47 | ) | $ | 1.10 | $ | (0.41 | ) | $ | 5.42 |
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act 1995 with respect to Grindrod Shipping’s financial condition, results of operations, cash flows, business strategies, operating efficiencies, competitive position, growth opportunities, plans and objectives of management, and other matters. These forward-looking statements, including, among others, those relating to our future business prospects, revenues and income, are necessarily estimates and involve a number of risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements. Accordingly, these forward-looking statements should be considered in light of various important factors, including those set forth below. Words such as “may,” “expects,” “intends,” “plans,” “believes,” “anticipates,” “hopes,” “estimates,” and variations of such words and similar expressions are intended to identify forward-looking statements. These forward-looking statements are based on the information available to, and the expectations and assumptions deemed reasonable by
Company Contact: CEO Email: ir@grindrodshipping.com Website: www.grinshipping.com | Investor Relations: Email: ir@grindrodshipping.com |
Source:
2024 GlobeNewswire, Inc., source