Financial Highlights for the Three Months Ended
- Revenues of
$76 .8 million - Gross profit of
$7 .0 million - Loss for the period and attributable to owners of the Company of
$4 .3 million, or$0.22 per ordinary share - Adjusted net loss of
$4 .3 million, or$0.22 per ordinary share(1) - Adjusted EBITDA of
$15 .7 million(1) - Handysize and supramax/ultramax TCE per day of
$9,491 and$12,869 , respectively(1)
(1) 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 Three Months Ended
- On
March 3, 2023 , we entered into a contract to sell the 2010-built handysize bulk carrier, IVS Sentosa, for$10.9 million (before costs) with delivery to her new owners onApril 6, 2023 . - On
March 16, 2023 , we delivered the 2015-built ultramax bulk carrier, IVS Hirono, to her new owners. - On
March 21, 2023 , we agreed to extend the long-term charter on the 2014-built supramax bulk carrier,IVS Crimson Creek , for a period of 11 to 14 months commencingMarch 11, 2023 . - On
March 22, 2023 , we entered into a contract to sell the 2015-built ultramax bulk carrier, IVS Pinehurst, for$23.2 million (before costs) with delivery to her new owners onMay 3, 2023 . - On
March 23, 2023 , we entered into a contract to sell the 2014-built handysize bulk carrier, IVS Kestrel, for$17.3 million (before costs) with delivery to her new owners planned on or aboutMay 31, 2023 . - On
March 31, 2023 , Mr.Stephen Griffiths retired from the Company as Interim Chief Executive Officer and Chief Financial Officer and relinquished his position on the Board of Directors. Mr.Edward Buttery was appointed as Chief Executive Officer and Mrs.Deborah Davel as Chief Financial Officer, effectiveApril 1, 2023 . - On
March 31, 2023 , Mr.Quah Ban Huat and Mr.John Herholdt retired as Directors of the Company and retired as Chairman of theAudit and Risk Committee and Chairman ofCompensation and Nomination Committee respectively. The Board appointed Mr.Gordon French as an independent, Non-Executive Director and Chairman of theAudit and Risk Committee effectiveApril 1, 2023 and Mr.Cullen Schaar was appointed as the Chairman of theCompensation and Nomination Committee effective onApril 1, 2023 .
Recent Developments
- On
April 6, 2023 , we delivered the 2010-built handysize bulk carrier, IVS Sentosa, to her new owners. - On
May 3, 2023 , we delivered the 2015-built ultramax bulk carrier, IVS Pinehurst, to her new owners. - On
May 17, 2023 , the Company’s Board of Directors declared an interim quarterly cash dividend of$0.03 per ordinary share, payable on or aboutJune 19, 2023 , to all shareholders of record as ofJune 9, 2023 (the “Record Date”). As ofMay 17, 2023 , there were 19,472,008 common shares of the Company outstanding.
In view of the Record Date ofJune 9, 2023 , shareholders may not reposition shares between the JSE and theU.S. Register during the period fromJune 8, 2023 , at9.00 a.m. (South African time) untilJune 10, 2023 , at9.00 a.m. (South African time). - As of
May 10, 2023 , we have contracted the following TCE per day for the second quarter of 2023 (1):- Handysize: approximately 992 operating days(2) at an average TCE per day of approximately
$11,439 - Supramax/ultramax: approximately 992 operating days(2) at an average TCE per day of approximately
$16,114
- Handysize: approximately 992 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
“During the quarter, we contracted three more ship sales, in line with our commitment to reduce debt. Charter rates decreased given the seasonally weak start to the year, compounded by a particularly early
Unaudited Results for the Three 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
During the three months ended
Gross profit was
Other operating expense was
Administrative expense was
Interest income was
Interest expense was
Income tax expense was
Loss for the three months 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 (22 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 Kestrel(2) | 2014 | 32,770 | ||||||
IVS Phinda | 2014 | 37,720 | IVS Commercial(1) | |||||
IVS Sparrowhawk | 2014 | 33,420 | ||||||
Handysize | ||||||||
IVS Merlion | 2013 | 32,070 | ||||||
IVS Raffles | 2013 | 32,050 | ||||||
IVS Ibis | 2012 | 28,240 | ||||||
IVS Kinglet(3) | 2011 | 33,130 | ||||||
IVS Magpie(3) | 2011 | 28,240 | ||||||
IVS Orchard | 2011 | 32,530 | ||||||
IVS Knot(3) | 2010 | 33,140 | ||||||
IVS Kingbird | 2007 | 32,560 | ||||||
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 | 2015 | 60,270 | ||||||
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 | ||||||||
Supramax/Ultramax – Eco | |||||||||||||
2021 | 64,230 | 2024-25 | $ | - | |||||||||
IVS Atsugi(6) | 2020 | 62,660 | 2023-24 | $ | 25.2 | ||||||||
IVS | 2020 | 62,660 | 2023-24 | $ | 25.2 | ||||||||
IVS Hayakita(8) | 2016 | 60,400 | 2023-26 | $ | ~21,6 | ||||||||
IVS | 2016 | 60,280 | 2023-26 | $ | - | ||||||||
2014 | 57,950 | 2023 | $ | - | |||||||||
IVS Naruo(11) | 2014 | 60,030 | 2023-24 | $ | ~13.6 |
(1) | Commercially managed by |
(2) | IVS Kestrel has been contracted for sale and is planned to deliver to the new owners on or about |
(3) | IVS Knot, IVS Kinglet, IVS Magpie and IVS |
(4) | Expiration date range represents the earliest and latest re-delivery periods due to extension options. |
(5) | Chartered-in until Q4 2024 with one one-year option to extend. |
(6) | Chartered-in until Q4 2023 with one one-year option to extend. 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 |
(7) | Chartered-in until Q3 2023 with one one-year option to extend. 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 |
(8) | Chartered-in until Q3 2023 with two one-year options and one nine-month option to extend. The purchase option is exercisable next in Q4 2023 subject to contract terms and conditions and includes an estimated Japanese Yen denominated component but excludes estimated 50/50 profit sharing with vessel owner. The Japanese Yen component has been converted at a rate of |
(9) | Chartered-in until Q3 2023 with two one-year options and one nine-month option to extend. |
(10) | Chartered-in for a period of 9 to 14 months commencing |
(11) | Chartered-in until Q4 2023 with one one-year option to extend. The purchase option is exercisable at any time prior to expiry date, subject to contract terms and conditions. The option includes an estimated Japanese Yen denominated component which has been converted at a rate of |
Unaudited Segment Information
Three months ended | ||||||
(In thousands of U.S. dollars) | 2023 | 2022 | ||||
Drybulk Carriers Business | ||||||
Handysize Segment | ||||||
Revenue | $ | 20,242 | $ | 36,245 | ||
Cost of sales | (19,596 | ) | (20,374 | ) | ||
Gross Profit | 646 | 15,871 | ||||
Supramax/Ultramax Segment | ||||||
Revenue | $ | 56,543 | $ | 72,744 | ||
Cost of sales | (50,969 | ) | (49,496 | ) | ||
Gross Profit | 5,574 | 23,248 | ||||
Selected Historical and Statistical Data of Our Operating Fleet
Set forth below are selected historical and statistical data of our operating fleet for the three months ended
Three months ended | ||||||
(In thousands of U.S. dollars) | 2023 | 2022 | ||||
Drybulk Carriers Business | ||||||
Handysize Segment | ||||||
Calendar days(1) | 1,465 | 1,443 | ||||
Available days(2) | 1,438 | 1,439 | ||||
Operating days(3) | 1,420 | 1,392 | ||||
Owned fleet operating days(4) | 1,305 | 1,299 | ||||
Short-term charter-in days(6) | 115 | 93 | ||||
Fleet utilization(7) | 98.7 | % | 96.7 | % | ||
TCE per day(8) | $ | 9,491 | $ | 22,201 | ||
Vessel operating costs per day(9) | $ | 5,950 | $ | 5,677 | ||
Supramax/Ultramax Segment | ||||||
Calendar days(1) | 1,748 | 2,243 | ||||
Available days(2) | 1,709 | 2,243 | ||||
Operating days(3) | 1,667 | 2,229 | ||||
Owned fleet operating days(4) | 827 | 807 | ||||
Long-term charter-in days(5) | 607 | 619 | ||||
Short-term charter-in days(6) | 233 | 803 | ||||
Fleet utilization(7) | 97.5 | % | 99.4 | % | ||
TCE per day(8) | $ | 12,869 | $ | 24,385 | ||
Vessel operating costs per day(9) | $ | 5,583 | $ | 5,540 |
(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 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 | 51,795 | 52,228 | ||||
Trade receivables | 5,271 | 11,290 | ||||
Contract assets | 187 | 1,313 | ||||
Other receivables and prepayments | 23,154 | 25,066 | ||||
Derivative financial instruments | 192 | 51 | ||||
Inventories | 10,854 | 15,278 | ||||
Total current assets | 91,453 | 105,226 | ||||
Non-current assets | ||||||
Restricted cash | 4,389 | 4,342 | ||||
Ships, property, plant and equipment | 381,777 | 407,552 | ||||
Right-of-use assets | 24,929 | 26,039 | ||||
Interest in joint ventures | 8 | 8 | ||||
Intangible assets | 222 | 186 | ||||
Other receivables and prepayments | 2,879 | 860 | ||||
Other investments | 3,537 | 3,714 | ||||
Deferred tax assets | 1,200 | 1,304 | ||||
Total non-current assets | 418,941 | 444,005 | ||||
Total assets | 510,394 | 549,231 | ||||
LIABILITIES AND EQUITY | ||||||
Current liabilities | ||||||
Trade and other payables | 17,704 | 29,599 | ||||
Contract liabilities | 3,215 | 4,369 | ||||
Due to joint ventures | 43 | 43 | ||||
Lease liabilities | 19,673 | 22,058 | ||||
Bank loans and other borrowings | 28,846 | 33,330 | ||||
Retirement benefit obligation | 119 | 125 | ||||
Derivative financial instruments | 143 | 138 | ||||
Provisions | 101 | 592 | ||||
Income tax payable | 421 | 423 | ||||
Total current liabilities | 70,265 | 90,677 | ||||
Non-current liabilities | ||||||
Trade and other payables | - | 140 | ||||
Lease liabilities | 4,770 | 4,055 | ||||
Bank loans and other borrowings | 151,472 | 165,638 | ||||
Retirement benefit obligation | 1,194 | 1,272 | ||||
Total non-current liabilities | 157,436 | 171,105 | ||||
Capital and reserves | ||||||
Share capital | 320,683 | 320,683 | ||||
Other equity and reserves | (24,564 | ) | (24,686 | ) | ||
Accumulated losses | (13,426 | ) | (8,548 | ) | ||
Total equity | 282,693 | 287,449 | ||||
Total equity and liabilities | 510,394 | 549,231 | ||||
Unaudited Condensed Consolidated Statement of Profit or Loss
Three months ended | ||||||
(In thousands of | 2023 | 2022 | ||||
Revenue | $ | 76,785 | $ | 110,286 | ||
Cost of sales | ||||||
Voyage expenses | (17,872 | ) | (23,677 | ) | ||
Vessel operating costs | (12,189 | ) | (11,403 | ) | ||
Charter hire costs | (4,157 | ) | (15,954 | ) | ||
Depreciation of ships, drydocking and plant and equipment– owned assets | (7,511 | ) | (8,212 | ) | ||
Depreciation of ships and ship equipment – right-of-use assets | (7,807 | ) | (8,748 | ) | ||
Other income (expenses) | 239 | (1,592 | ) | |||
Cost of ship sale | (20,455 | ) | - | |||
Gross profit | 7,033 | 40,700 | ||||
Other operating expenses | (92 | ) | (313 | ) | ||
Administrative expense | (7,002 | ) | (8,261 | ) | ||
Share of profit of joint ventures | - | 2 | ||||
Interest income | 354 | 103 | ||||
Interest expense | (4,523 | ) | (3,069 | ) | ||
(Loss) profit before taxation | (4,230 | ) | 29,162 | |||
Income tax expense | (64 | ) | (131 | ) | ||
(Loss) profit for the period | (4,294 | ) | 29,031 | |||
(Loss) profit per share attributable to owners of the Company: | ||||||
Basic | $ | (0.22 | ) | $ | 1.55 | |
Diluted | $ | (0.22 | ) | $ | 1.52 | |
Unaudited Condensed Consolidated Statement of Cash Flows
For the three months ended | 2023 | 2022 | ||||
US$’000 | US$’000 | |||||
Operating activities | $ | $ | ||||
(Loss) Profit for the year | (4,294 | ) | 29,031 | |||
Adjustments for: | ||||||
Share of losses of joint ventures | - | (2 | ) | |||
Gain on disposal of ships | (3,478 | ) | - | |||
Gain on disposal of plant and equipment, furniture and fittings and motor vehicles | (1 | ) | (31 | ) | ||
Depreciation and amortisation | 15,710 | 17,235 | ||||
Provision for onerous contracts (reversed) recognised | (491 | ) | 1,455 | |||
Recognition of share-based payments expense | - | 794 | ||||
Net foreign exchange (gain) loss | (10 | ) | 509 | |||
Interest expense | 4,523 | 3,069 | ||||
Interest income | (354 | ) | (103 | ) | ||
Income tax expense | 64 | 131 | ||||
Operating cash flows before movements in working capital and ships | 11,669 | 52,088 | ||||
Inventories | 4,421 | (2,881 | ) | |||
Trade receivables, other receivables and prepayments | 5,784 | (5,657 | ) | |||
Contract assets | 1,126 | 1,745 | ||||
Trade and other payables | (11,614 | ) | (9,894 | ) | ||
Contract liabilities | (1,154 | ) | (3,961 | ) | ||
Due to related parties | 86 | (269 | ) | |||
Operating cash flows before movement in ships | 10,318 | 31,171 | ||||
Capital expenditure on ships | (1,616 | ) | (2 | ) | ||
Proceeds from disposal of ships | 23,381 | - | ||||
Net cash generated from operations | 32,083 | 31,169 | ||||
Interest paid | (4,606 | ) | (2,645 | ) | ||
Interest received | 354 | 103 | ||||
Income tax paid | (18 | ) | (127 | ) | ||
Net cash flows generated from operating activities | 27,813 | 28,500 | ||||
Investing activities | ||||||
Purchase of plant and equipment | (43 | ) | (54 | ) | ||
Purchase of intangible assets | (87 | ) | (11 | ) | ||
Proceeds from disposal of plant and equipment | (1 | ) | 63 | |||
Net cash used in investing activities | (131 | ) | (2 | ) | ||
Financing activities | ||||||
Payment of principal portion of bank loans and other borrowings | (18,566 | ) | (6,883 | ) | ||
Principal repayments on lease liabilities | (8,746 | ) | (9,188 | ) | ||
Restricted cash | (92 | ) | (3 | ) | ||
Dividends paid | (584 | ) | (13,650 | ) | ||
Net cash flows used in financing activities | (27,988 | ) | (29,724 | ) | ||
Net decrease in cash and cash equivalents | (306 | ) | (1,226 | ) | ||
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 | (169 | ) | 611 | |||
Cash and cash equivalents at the end of the period | 46,086 | 103,628 | ||||
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 three month periods ended
Three months ended | ||||||||||||||
2023 | 2022 | |||||||||||||
(In thousands of U.S. dollars) | Revenue | Voyage Expenses | TCE Revenue | Revenue | Voyage Expenses | TCE Revenue | ||||||||
Vessel revenue | ||||||||||||||
Handysize | 20,191 | (6,714 | ) | 13,477 | 36,191 | (5,287 | ) | 30,904 | ||||||
Supramax/ultramax | 32,611 | (11,158 | ) | 21,453 | 72,744 | (18,389 | ) | 54,355 | ||||||
Other | - | 1,296 | ||||||||||||
Ship sale revenue | 23,932 | - | ||||||||||||
Other revenue | 51 | 55 | ||||||||||||
Revenue | 76,785 | 110,286 | ||||||||||||
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 three month periods ended
Three months ended | ||||||
(In thousands of U.S. dollars) | 2023 | 2022 | ||||
(Loss) profit for the period | $ | (4,294 | ) | $ | 29,031 | |
Adjusted for: | ||||||
Income tax expense | 64 | 131 | ||||
Interest income | (354 | ) | (103 | ) | ||
Interest expense | 4,523 | 3,069 | ||||
Share of losses of joint ventures | - | (2 | ) | |||
Depreciation and amortization | 15,710 | 17,235 | ||||
EBITDA | 15,649 | 49,361 | ||||
Adjusted for | ||||||
Share-based compensation | - | 794 | ||||
Adjusted EBITDA | 15,649 | 50,155 | ||||
Adjusted net income/(loss) and Adjusted Earnings per share
Adjusted net income/(loss) is defined as (loss) 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/(loss) 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/(loss) 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/(loss) 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/(loss) 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/(loss) 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/(loss) for the three month periods ended
Three months ended | |||||
(In thousands of U.S. dollars) | 2023 | 2022 | |||
(Loss) profit for the period | $ | (4,294 | ) | $ | 29,031 |
Adjusted for: | |||||
Share based compensation | - | 794 | |||
Adjusted net (loss) income | (4,294 | ) | 29,825 | ||
Weighted average number of shares on which the profit per share and adjusted earnings per share has been calculated | 19,472,008 | 18,679,384 | |||
Effect of dilutive potential ordinary shares | - | 388,004 | |||
Weighted average number of ordinary shares for the purpose of calculating diluted profit per share and diluted adjusted earnings per share | 19,472,008 | 19,067,388 | |||
Basic (loss) profit per share | $ | (0.22 | ) | $ | 1.55 |
Diluted (loss) profit per share | $ | (0.22 | ) | $ | 1.52 |
Basic adjusted earnings per share | $ | (0.22 | ) | $ | 1.60 |
Diluted adjusted earnings per share | $ | (0.22 | ) | $ | 1.56 |
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 three month periods ended
Three months ended | |||||
(In thousands of U.S. dollars, except per share data) | 2023 | 2022 | |||
(Loss) profit for the period | $ | (4,294 | ) | $ | 29,031 |
Headline (loss) earnings | (4,294 | ) | 29,031 | ||
Weighted average number of shares on which the profit per share and headline earnings per share has been calculated | 19,472,008 | 18,679,384 | |||
Effect of dilutive potential ordinary shares | - | 388,004 | |||
Weighted average number of ordinary shares for the purpose of calculating diluted profit per share and diluted headline earnings per share | 19,472,008 | 19,067,388 | |||
Basic (loss) profit per share | $ | (0.22 | ) | $ | 1.55 |
Diluted (loss) profit per share | $ | (0.22 | ) | $ | 1.52 |
Basic headline (loss) earnings per share | $ | (0.22 | ) | $ | 1.55 |
Diluted headline (loss) earnings per share | $ | (0.22 | ) | $ | 1.52 |
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:
2023 GlobeNewswire, Inc., source