UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM 6-K
REPORT
OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13A-16 OR 15D-16 OF THE SECURITIES EXCHANGE ACT OF 1934
For
the month of September 2023
Commission
File Number 001-38440
Grindrod
Shipping Holdings Ltd.
1
Temasek Avenue
#10-02
Millenia Tower
Singapore
039192
(Address
of principal executive offices)
Indicate
by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F
☒ Form 40-F ☐
INFORMATION
CONTAINED IN THIS FORM 6-K REPORT
On
September 5, 2023, Grindrod Shipping Holdings Ltd. (the “Company”) issued a press release announcing the Company’s
financial results for the three months and six months ended June 30, 2023. A copy of the press release is filed as Exhibit 99.1 to this
Report on Form 6-K.
Exhibits
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned, thereunto duly authorized.
| |
GRINDROD SHIPPING HOLDINGS LTD. |
| |
|
| Dated: September 5, 2023 |
/s/ Edward Buttery |
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Name: Edward Buttery |
| |
Title: Chief Executive Officer |
Exhibit 99.1
GRINDROD
SHIPPING HOLDINGS LTD. ANNOUNCES
UNAUDITED
FINANCIAL RESULTS FOR THE THREE MONTHS AND SIX MONTHS
ENDED
JUNE 30, 2023
Singapore,
September 5, 2023: — Grindrod Shipping Holdings Ltd. (NASDAQ: GRIN) (JSE: GSH) (“Grindrod Shipping” or “Company”
or “we” or “us” or “our”), a global provider of maritime transportation services predominantly in
the drybulk sector, today announced its earnings results for the three months and six months ended June 30, 2023.
Financial
Highlights for the Three Months Ended June 30, 2023
| |
● |
Revenues of $109.1 million |
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|
|
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● |
Gross profit of $16.4 million |
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|
|
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● |
Profit for the period and
attributable to owners of the Company of $5.5 million, or $0.28 per ordinary share |
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|
|
| |
● |
Adjusted net income of
$5.5 million, or $0.28 per ordinary share(1) |
| |
|
|
| |
● |
Adjusted EBITDA of $24.3 million(1) |
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|
|
| |
● |
Handysize and supramax/ultramax
TCE per day of $11,594 and $15,215, respectively(1) |
Financial
Highlights for the Six Months Ended June 30, 2023
| |
● |
Revenues of $185.9 million |
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|
|
| |
● |
Gross profit of $23.5 million |
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|
|
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● |
Profit for the period and
attributable to owners of the Company of $1.2 million, or $0.06 per ordinary share |
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|
|
| |
● |
Adjusted net income of
$1.2 million, or $0.06 per ordinary share(1) |
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|
|
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● |
Adjusted EBITDA of $40.0 million(1) |
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|
|
| |
● |
Handysize and supramax/ultramax
TCE per day of $10,542 and $13,968, respectively(1) |
| |
|
|
| |
● |
Period end cash and cash
equivalents of $83.3 million and restricted cash of $7.0 million |
(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 June 30, 2023
| |
● |
On
May 4, 2023, we entered into a contract to charter-out the 2017-built supramax bulk carrier IVS Swinley Forest for
12 months. |
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|
|
| |
● |
On May 25, 2023, we exercised
the purchase option on the chartered-in 2016-built supramax bulk carrier, IVS Hayakita, with delivery planned on or about
September 28, 2023. The vessel will remain chartered-in at her original contract rate until delivery to us. |
| |
|
|
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● |
On
June 9, 2023, the Company completed the previously disclosed sale of the 2014-built handysize bulk carrier, IVS Kestrel for
$17.3 million (before costs). Approximately $7.0 million debt was repaid on the Company’s $114.1 million senior secured credit
facility and the sale generated net proceeds to the Company of $10.3 million after the debt repayment. Following delivery to the
new owners, IVS Kestrel was chartered-in for 11 to 13 months and has two one-year options to extend the charter. |
| |
|
|
| |
● |
On June 27, 2023, we entered
into a contract to sell the 2011-built handysize bulk carrier, IVS Orchard for a price of $10.8 million (before costs). The
vessel is unencumbered. |
Recent
Developments
| |
● |
On July 11,
2023, we exercised the option to extend the firm charter-in period of the 2016-built supramax bulk carrier IVS Windsor for
12 months. |
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|
|
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● |
On July 13, 2023, we announced
an EGM to be held on August 10, 2023 to propose a capital reduction which would result in a total cash distribution up to a maximum
of $45.0 million. |
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|
|
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● |
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. |
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|
|
| |
● |
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) from Good
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)
from Billy (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 on July 28, 2023. |
| |
|
|
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● |
On August 4, 2023, we delivered
the 2011-built handysize bulk carrier, IVS Orchard, to her new owners. |
| |
|
|
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● |
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, IVS Bosch Hoek and the 2016-built
ultramax bulk carrier, IVS Hayakita for $46.5 million (before costs) with delivery to the the new owner planned on or about
September 30, 2023. We can provide no assurances that the delivery will take place by that time or at all. |
| |
|
|
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● |
As of August 29, 2023,
we have contracted the following TCE per day for the third quarter of 2023 (1): |
| |
- |
Handysize: approximately 1,353 operating
days(2) at an average TCE per day of approximately $9,965 |
| |
|
|
| |
- |
Supramax/ultramax: approximately 1,327 operating days(2)
at an average TCE per day of approximately $12,810 |
(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
Edward
Buttery, the Chief Executive Officer, commented:
“In
addition to continuing to reduce debt through select asset sales, significant steps were taken to enhance the profile of the
Grindrod fleet during the period as we strike a balance between deleveraging while maintaining a core, modern fleet of predominantly
Japanese geared bulk carriers. Furthermore, those asset sales have resulted in surplus cash for distribution to shareholders.
Despite recent weaker charter market conditions, asset values are still above historical averages suggesting a positive outlook
remains for the geared dry bulk segment given the limited supply of ships over the medium to long-term after a long period of low
fleet growth. In the near-term, re-stocking in China should result in improved rates towards the end of the year followed by what we
expect to be a structural recovery, albeit a gentle one, in the Chinese economy in 2024. We continue to focus on the path to
realising synergies from the combined management of Grindrod and TMI fleets ensuring we’re in a strong position to capitalise
on the improved earnings environment when it arrives.”
Unaudited
Results for the Three Months Ended June 30, 2023 and 2022
Revenue
was $109.1 million for the three months ended June 30, 2023 and $161.6 million for the three months ended June 30, 2022. Vessel
revenue was $56.8 million for the three months ended June 30, 2023 and $131.5 million for the three months ended June 30, 2022.
Revenue decreased due to weakening market conditions in the drybulk business and a reduction in short-term operating days that was
partially offset by the revenue generated from the sale of two handysize vessels and a supramax/ultramax vessel in the second
quarter of 2023 compared to the sale of one medium range tanker in the second quarter of 2022 (included in the Other segment under a
bareboat charter). Short-term operating days decreased due to the redelivery of the short-term vessels due to reduced demand for
drybulk tonnage brought about by a global slowdown in GDP growth and higher interest rates.
Our
handysize total revenue and supramax/ultramax total revenue was $51.6 million and $57.5 million, respectively, for the three months
ended June 30, 2023, and $52.6 million and $78.2 million, respectively, for the three months ended June 30, 2022. Handysize vessel
revenue and supramax/ultramax vessel revenue was $22.3 million and $34.4 million, respectively, for the three months ended June 30,
2023, and $52.4 million and $78.2 million, respectively, for the three months ended June 30, 2022. The results for the three months
ended June 30, 2023 were negatively impacted by weaker spot markets and a reduction in short-term operating days. Handysize ship
sale revenue and supramax/ultramax ship sale revenue was $29.3 million and $23.0 million, respectively, for the three months ended
June 30, 2023, which was due to the sale of two handysize vessels and a supramax/ultramax vessel in the second quarter of 2023
compared to no sales for the same period in 2022.
Handysize
TCE per day was $11,594 per day for the three months ended June 30, 2023 and $27,479 per day for the three months ended June 30, 2022.
Supramax/ultramax TCE per day was $15,215 per day for the three months ended June 30, 2023 and $31,021 per day for the three months ended
June 30, 2022.
Cost
of sales was $92.6 million for the three months ended June 30, 2023 and $97.0 million for the three months ended June 30, 2022. Cost
of sales decreased primarily as a result of decreased voyage expenses due to a reduction in short-term operating days and lower
charter-in costs on short-term charters as spot rates weakened during the second quarter of 2023 which was partially offset by the
sale of two handysize vessels and a supramax/ultramax vessel in the second quarter of 2023 compared to the sale of one medium range
tanker in the second quarter of 2022 (included in the Other segment under a bareboat charter).
Our
handysize segment and supramax/ultramax segment cost of sales was $45.3 million and $48.1 million, respectively, for the three months
ended June 30, 2023 and $24.8 million and $42.6 million, respectively, for the three months ended June 30, 2022. Cost of sales increased
due to the sale of a two handysize and a supramax/ultramax vessel in the second quarter of 2023 compared to the sale of one medium range
tanker in the second quarter of 2022 (included in the Other segment under a bareboat charter), which was partially offset by a decrease
in voyage expenses and charter hire as a result of the weaker market.
Handysize
voyage expenses and supramax/ultramax voyage expenses were $5.9 million and $12.1 million, respectively, for the three months ended June
30, 2023 and $9.6 million and $13.1 million, respectively, for the three months ended June 30, 2022. Handysize charter hire expense and
supramax/ultramax charter hire expense were $2.3 million and $0.9 million, respectively, for the three months ended June 30, 2023 and
$4.7 million and $13.9 million, respectively, for the three months ended June 30, 2022. Handysize vessel operating costs and supramax/ultramax
vessel operating costs were $7.6 million and $4.3 million, respectively, for the three months ended June 30, 2023, and $7.2 million and
$4.2 million, respectively, for the three months ended June 30, 2022. Handysize vessel operating costs per day were $6,076 per day for
the three months ended June 30, 2023 and $5,247 per day for the three months ended June 30, 2022. Vessel operating costs per day were
higher in the handysize drybulk carrier segment for the three months ended June 30, 2023 in comparison to the three months ended June
30, 2022 due to increased repairs on certain of the older vessels and the increased costs of lubricating oil. Supramax/ultramax vessel
operating costs were $5,641 per day for the three months ended June 30, 2023 and $5,139 per day for the three months ended June 30, 2022.
Vessel operating costs per day were higher in the supramax/ultramax drybulk carrier segment for the three months ended June 30, 2023
in comparison to the three months ended June 30, 2022 due to increased repair costs on a small number of vessels and the increased costs
of lubricating oil.
During
the three months ended June 30, 2023, out of 1,470 operating days in the supramax/ultramax segment, 92.9% were fulfilled with owned/long-term
chartered-in vessels and the remaining 7.1% with short-term chartered-in vessels compared to 2,099 operating days in the supramax/ultramax
segment, 68.3% were fulfilled with owned/long-term chartered-in vessels and the remaining 31.7% with short-term chartered-in vessels
for the three months ended June 30, 2022.
Gross
profit was $16.4 million for the three months ended June 30, 2023 and $64.6 million for the three months ended June 30, 2022.
Other
operating income was $0.2 million for the three months ended June 30, 2023 and $4.1 million for the three months ended June 30, 2022.
The decrease is primarily due to the reversal of impairment loss on vessels for the three months ended June 30, 2022.
Administrative
expense was $7.0 million for the three months ended June 30, 2023 and $7.6 million for the three months ended June 30, 2022. The decrease
was due to a reduced staff incentive accrual and no accrual for the forfeitable share incentive scheme due to the settlement and termination
of the scheme in December 2022, which was partially offset by increased travel expenses and increased insurance costs relating to the
TMI transaction in December 2022.
Interest
income was $0.6 million for the three months ended June 30, 2023 and $0.2 million for the three months ended June 30, 2022.
Interest
expense was $4.5 million for the three months ended June 30, 2023 and $4.3 million for the three months ended June 30, 2022. The increase
is primarily due to the increase in interest rates.
Income
tax expense remained flat at $0.2 million for the three months ended June 30, 2023 and June 30, 2022.
Profit
for the three months ended June 30, 2023 was $5.5 million compared to a profit of $56.8 million for the three months ended June 30, 2022.
Unaudited
Results for the six months ended June 30, 2023 and 2022
Revenue
was $185.9 million for the six months ended June 30, 2023 and $271.9 million for six months ended June 30, 2022. Vessel revenue was $109.6
million for the six months ended June 30, 2023 and $241.7 million for the six months ended June 30, 2022. Revenue decreased due to weakening
market conditions in the drybulk business and a reduction in short-term operating days, partially offset with the sale of two handysize
and two supramax/ultramax vessels compared to the sale of a medium range tanker in the first half of 2022 (included in the Other segment
under a bareboat charter).
Our
handysize total revenue and supramax/ultramax total revenue was $71.8 million and $114.0 million, respectively, for the six months ended
June 30, 2023 and $88.8 million and $151.0 million, respectively, for the six months ended June 30, 2022. Handysize vessel revenue and
supramax/ultramax vessel revenue was $42.5 million and $67.0 million, respectively, for the six months ended June 30, 2023 and $88.6
million and $151.0 million, respectively, for the six months ended June 30, 2022. The results were negatively impacted by the weaker
spot market rates and a reduction in short-term operating days. Handysize ship sale revenue and supramax/ultramax ship sale revenue was
$29.3 million and $46.9 million, respectively, for the six months ended June 30, 2023 due to the sale of two handysize and two supramax/ultramax
vessels compared to no ship sales for the same period in 2022.
Handysize
TCE per day was $10,542 per day for the six months ended June 30, 2023 and $24,990 per day for the six months ended June 30, 2022. Supramax/ultramax
TCE per day was $13,968 per day for the six months ended June 30, 2023 and $27,604 per day for the six months ended June 30, 2022.
Cost
of sales was $162.4 million for the six months ended June 30, 2023 and $166.6 million for the six months ended June 30, 2022. The decreased
costs are primarily as a result of decreased voyage expenses due to decrease in the number of short-term operating days and lower charter-in
costs on short-term charters as spot rates weakened during the first half of 2023 which was partially offset by the sale of two handysize
and two supramax/ultramax vessels in the first half of 2023 compared to the sale of one medium range tanker for the same period in 2022
(included in the Other segment under a bareboat charter).
In
the drybulk business, our handysize segment and supramax/ultramax segment cost of sales was $64.9 million and $99.0 million, respectively,
for the six months ended June 30, 2023 and $45.2 million and $92.1 million, respectively, for the six months ended June 30, 2022.
Our
handysize voyage expenses and supramax/ultramax voyage expenses was $12.6 million and $23.2 million, respectively, for the six months
ended June 30, 2023 and $14.9 million and $31.5 million, respectively, for the six months ended June 30, 2022. Handysize charter hire
expenses and supramax/ultramax charter hire expenses were $3.3 million and $4.1 million for the six months ended June 30, 2023 and $5.9
million, and $28.6 million for the six months ended June 30, 2022. Handysize vessel operating costs and supramax/ultramax vessel operating
costs were $15.7 million and $9.2 million for the six months ended June 30, 2023 and $14.8 million, and $8.7 million for the six months
ended June 30, 2022. Handysize vessel operating costs per day were $6,011 per day for the six months ended June 30, 2023 and $5,461 per
day for the six months ended June 30, 2022. These increases were primarily due to increased repairs on certain older vessels and an increase
in cost of lubricating oils. Supramax/ultramax vessel operating costs per day were $5,610 per day for the six months ended June 30, 2023
and $5,338 per day for the six months ended June 30, 2022. These increases were primarily due to repair costs on a small number of vessels
and increased cost of lubricating oils.
Gross
profit was $23.5 million for the six months ended June 30, 2023 and $105.3 million for the six months ended June 30, 2022.
Other
operating income was $0.1 million for the six months ended June 30, 2023 and $3.8 million for the six months ended June 30, 2022. The
decrease is primarily due to the reversal of impairment loss on vessels for the six months ended June 30, 2022.
Administrative
expense was $14.0 million for the six months ended June 30, 2023 and $15.9 million for the six months ended June 30, 2022. The decrease
was due to a reduced staff incentive accrual and no accrual for the forfeitable share incentive scheme due to the settlement and termination
of the scheme in December 2022, which was partially offset by increased travel expenses and insurance costs relating to the TMI transaction
in December 2022.
Interest
income was $1.0 million for the six months ended June 30, 2023 and $0.3 million for the six months ended June 30, 2022.
Interest
expense was $9.0 million for the six months ended June 30, 2023 and $7.4 million for the six months ended June 30, 2022. The increase
is primarily due to the increase in interest rates.
Income
tax expense remained flat at $0.3 million for the six months ended June 30, 2023 compared to six months ended June 30, 2022.
Profit
for the six months ended June 30, 2023 was to $1.2 million and $85.8 million for the six months ended June 30, 2022.
Net
cash flows generated from operating activities was $90.8 million for the six months ended June 30, 2023 and $137.8 million for the six
months ended June 30, 2022. Net cash utilised in investing activities was $0.1 million for the six months ended June 30, 2023 and $0.1
million for the six months ended June 30, 2022. Net cash flows used in financing activities was $53.7 million for the six months ended
June 30, 2023 and $81.6 million for the six months ended June 30, 2022.
As
of June 30, 2023, we had cash and cash equivalents of $83.3 million and restricted cash of $7.0 million.
About
Grindrod Shipping
Grindrod
Shipping owns and operates a diversified fleet of owned, long-term and short-term chartered-in drybulk vessels predominantly in the handysize
and supramax/ultramax segments. The drybulk business, which operates under the brand “Island View Shipping” (“IVS”)
includes a core fleet of 29 vessels consisting of 14 handysize drybulk carriers and 15 supramax/ultramax drybulk carriers. The Company
is based in Singapore, with offices in London, Durban, Tokyo and Rotterdam. Grindrod Shipping is listed on NASDAQ under the ticker “GRIN”
and on the JSE under the ticker “GSH”.
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 (21 Vessels)
| Vessel Name | |
Built | |
Country of Build | |
DWT | | |
Type of Employment |
| Handysize – Eco | |
| |
| |
| | | |
|
| IVS Tembe | |
2016 | |
Japan | |
| 37,740 | | |
IVS Commercial(1) |
| IVS Sunbird | |
2015 | |
Japan | |
| 33,400 | | |
IVS Handysize Pool |
| IVS Thanda | |
2015 | |
Japan | |
| 37,720 | | |
IVS Commercial(1) |
| IVS Phinda | |
2014 | |
Japan | |
| 37,720 | | |
IVS Commercial(1) |
| IVS Sparrowhawk | |
2014 | |
Japan | |
| 33,420 | | |
IVS Handysize Pool |
| Handysize | |
| |
| |
| | | |
|
| IVS Merlion | |
2013 | |
China | |
| 32,070 | | |
IVS Handysize Pool |
| IVS Raffles | |
2013 | |
China | |
| 32,050 | | |
IVS Handysize Pool |
| IVS Ibis | |
2012 | |
Japan | |
| 28,240 | | |
IVS Handysize Pool |
| IVS Kinglet(2) | |
2011 | |
Japan | |
| 33,130 | | |
IVS Handysize Pool |
| IVS Magpie(2) | |
2011 | |
Japan | |
| 28,240 | | |
IVS Handysize Pool |
| IVS Knot(2) | |
2010 | |
Japan | |
| 33,140 | | |
IVS Handysize Pool |
| IVS Kingbird | |
2007 | |
Japan | |
| 32,560 | | |
IVS Handysize Pool |
| Steady Sarah | |
2011 | |
Japan | |
| 38,468 | | |
IVS Handysize Pool |
| Supramax/Ultramax – Eco | |
| |
| |
| | | |
|
| IVS Prestwick | |
2019 | |
Japan | |
| 61,300 | | |
IVS Supramax Pool |
| IVS Okudogo | |
2019 | |
Japan | |
| 61,330 | | |
IVS Supramax Pool |
| IVS Phoenix(2) | |
2019 | |
Japan | |
| 61,470 | | |
IVS Supramax Pool |
| IVS Swinley Forest | |
2017 | |
Japan | |
| 60,490 | | |
IVS Supramax Pool |
| IVS Gleneagles | |
2016 | |
Japan | |
| 58,070 | | |
IVS Supramax Pool |
| IVS North Berwick | |
2016 | |
Japan | |
| 60,480 | | |
IVS Supramax Pool |
| IVS Bosch Hoek(3) | |
2015 | |
Japan | |
| 60,270 | | |
IVS Supramax Pool |
| IVS Wentworth | |
2015 | |
Japan | |
| 58,090 | | |
IVS Supramax Pool |
Drybulk
Carriers — Long-Term Charter-In Fleet (8 Vessels)
| Vessel Name | |
Built | |
Country of Build | |
DWT | | |
Charter-in Period (4) | |
Purchase
Option
Price (Millions) | | |
Type of Employment |
| Handysize – Eco | |
| |
| |
| | | |
| |
| | | |
|
| IVS Kestrel(5) | |
2014 | |
Japan | |
| 32,770 | | |
2023-24 | |
$ | - | | |
IVS Handysize Pool |
| Supramax/Ultramax – Eco | |
| |
| |
| | | |
| |
| | | |
|
| Aries Karin(6) | |
2021 | |
Japan | |
| 64,230 | | |
2024-25 | |
$ | - | | |
IVS Supramax Pool |
| IVS Atsugi(7) | |
2020 | |
Japan | |
| 62,660 | | |
2023-24 | |
$ | 25.2 | | |
IVS Supramax Pool |
| IVS Pebble Beach(8) | |
2020 | |
Japan | |
| 62,660 | | |
2023-24 | |
$ | 25.2 | | |
IVS Supramax Pool |
| IVS Hayakita(9) | |
2016 | |
Japan | |
| 60,400 | | |
2023-26 | |
$ | ~21.2 | | |
IVS Supramax Pool |
| IVS Windsor(10) | |
2016 | |
Japan | |
| 60,280 | | |
2023-26 | |
$ | - | | |
IVS Supramax Pool |
| IVS Crimson Creek(11) | |
2014 | |
Japan | |
| 57,950 | | |
2023 | |
$ | - | | |
IVS Supramax Pool |
| IVS Naruo(12) | |
2014 | |
Japan | |
| 60,030 | | |
2023-24 | |
$ | ~12.4 | | |
IVS Supramax Pool |
| (1) |
Commercially
managed by Grindrod Shipping alongside the IVS Handysize Pool. |
| |
|
| (2) |
IVS Knot, IVS
Kinglet, IVS Magpie and IVS Phoenix have each undergone separate financing arrangements in which we sold these
vessels but retained the right to control the use of these vessels for a period up to 2030, 2031, 2031 and 2036, respectively, and
we have an option to acquire IVS Knot, IVS Kinglet and IVS Magpie commencing in 2021 and IVS Phoenix in
2023. We regard the vessels as owned since we have retained the right to control the use of the vessels. |
| |
|
| (3) |
IVS Bosch Hoek has
been contracted for sale and is planned to deliver to the new owners on or about September 30, 2023. |
| |
|
| (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 2023
with 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 $1.0 million per year or prorate. |
| |
|
| (8) |
Chartered-in until Q3 2023
with 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 $1.0 million per year or prorate. |
| |
|
| (9) |
Chartered-in until Q3 2023.
The purchase option has been exercised on May 25, 2023 and the IVS Hayakita has been contracted for sale and is planned to
deliver to new owners on or about September 28, 2023. The Japanese Yen component has been converted at a rate of 138 to $1 and excludes
estimated 50/50 profit sharing with vessel owner. |
| |
|
| (10) |
Chartered-in until
Q3 2024 with one one-year option and one nine-month option to extend. |
| |
|
| (11) |
Chartered-in for
a period of 9 to 14 months commencing March 11, 2023. |
| |
|
| (12) |
Chartered-in until Q4 2024.
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 145 Yen to $1. |
Unaudited
Segment Information
| | |
Three months ended June 30, | | |
Six months ended June 30, | |
| (In thousands of U.S. dollars) | |
2023 | | |
2022 | | |
2023 | | |
2022 | |
| Drybulk Carriers Business | |
| | | |
| | | |
| | | |
| | |
| Handysize Segment | |
| | | |
| | | |
| | | |
| | |
| Revenue | |
$ | 51,605 | | |
$ | 52,570 | | |
$ | 71,847 | | |
$ | 88,815 | |
| Cost of sales | |
| (45,329 | ) | |
| (24,786 | ) | |
| (64,925 | ) | |
| (45,160 | ) |
| Gross Profit | |
| 6,276 | | |
| 27,784 | | |
| 6,922 | | |
| 43,655 | |
| Supramax/Ultramax Segment | |
| | | |
| | | |
| | | |
| | |
| Revenue | |
$ | 57,460 | | |
$ | 78,246 | | |
$ | 114,003 | | |
$ | 150,990 | |
| Cost of sales | |
| (48,069 | ) | |
| (42,641 | ) | |
| (99,038 | ) | |
| (92,137 | ) |
| Gross Profit | |
| 9,391 | | |
| 35,605 | | |
| 14,965 | | |
| 58,853 | |
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 June 30, 2023 and 2022 and
the six months ended June 30, 2023 and 2022 that we believe may be useful in better understanding our operating fleet’s financial
position and results of operations. This table contains certain information regarding TCE per day and vessel operating costs per day
which are non-GAAP measures. For a discussion of certain of these measures, see “Non-GAAP Financial Measures” at the end
of this press release.
| | |
Three months ended June 30, | | |
Six months ended June 30, | |
| (In thousands of U.S. dollars) | |
2023 | | |
2022 | | |
2023 | | |
2022 | |
| Drybulk Carriers Business | |
| | | |
| | | |
| | | |
| | |
| Handysize Segment | |
| | | |
| | | |
| | | |
| | |
| Calendar days(1) | |
| 1,435 | | |
| 1,597 | | |
| 2,900 | | |
| 3,040 | |
| Available days(2) | |
| 1,435 | | |
| 1,574 | | |
| 2,873 | | |
| 3,013 | |
| Operating days(3) | |
| 1,420 | | |
| 1,560 | | |
| 2,840 | | |
| 2,952 | |
| Owned fleet operating days(4) | |
| 1,243 | | |
| 1,328 | | |
| 2,548 | | |
| 2,627 | |
| Long-term charter-in days(5) | |
| 19 | | |
| - | | |
| 19 | | |
| - | |
| Short-term charter-in days(6) | |
| 158 | | |
| 232 | | |
| 273 | | |
| 325 | |
| Fleet utilization(7) | |
| 99.0 | % | |
| 99.1 | % | |
| 98.9 | % | |
| 98.0 | % |
| TCE per day(8) | |
$ | 11,594 | | |
$ | 27,479 | | |
$ | 10,542 | | |
$ | 24,990 | |
| Vessel operating costs per day(9) | |
$ | 6,076 | | |
$ | 5,247 | | |
$ | 6,011 | | |
$ | 5,461 | |
| | |
| | | |
| | | |
| | | |
| | |
| Supramax/Ultramax Segment | |
| | | |
| | | |
| | | |
| | |
| Calendar days(1) | |
| 1,501 | | |
| 2,123 | | |
| 3,249 | | |
| 4,365 | |
| Available days(2) | |
| 1,501 | | |
| 2,123 | | |
| 3,210 | | |
| 4,365 | |
| Operating days(3) | |
| 1,470 | | |
| 2,099 | | |
| 3,137 | | |
| 4,328 | |
| Owned fleet operating days(4) | |
| 751 | | |
| 819 | | |
| 1,578 | | |
| 1,626 | |
| Long-term charter-in days(5) | |
| 615 | | |
| 614 | | |
| 1,222 | | |
| 1,233 | |
| Short-term charter-in days(6) | |
| 104 | | |
| 666 | | |
| 337 | | |
| 1,469 | |
| Fleet utilization(7) | |
| 97.9 | % | |
| 98.9 | % | |
| 97.7 | % | |
| 99.2 | % |
| TCE per day(8) | |
$ | 15,215 | | |
$ | 31,021 | | |
$ | 13,968 | | |
$ | 27,604 | |
| Vessel operating costs per day(9) | |
$ | 5,641 | | |
$ | 5,139 | | |
$ | 5,610 | | |
$ | 5,338 | |
| (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
| | |
30 June
2023 | | |
31 December
2022 | |
| | |
US$’000 | | |
US$’000 | |
| ASSETS | |
| | | |
| | |
| Current assets | |
| | | |
| | |
| Cash and bank balances | |
| 85,912 | | |
| 52,228 | |
| Trade receivables | |
| 6,577 | | |
| 11,290 | |
| Contract assets | |
| 1,192 | | |
| 1,313 | |
| Other receivables and prepayments | |
| 16,924 | | |
| 25,066 | |
| Due from related party | |
| 191 | | |
| - | |
| Derivative financial instruments | |
| 64 | | |
| 51 | |
| Inventories | |
| 12,532 | | |
| 15,278 | |
| Tax recoverable | |
| 50 | | |
| - | |
| Total current assets | |
| 123,442 | | |
| 105,226 | |
| | |
| | | |
| | |
| Non-current assets | |
| | | |
| | |
| Restricted cash | |
| 4,443 | | |
| 4,342 | |
| Ships, property, plant and equipment | |
| 332,339 | | |
| 407,552 | |
| Right-of-use assets | |
| 40,866 | | |
| 26,039 | |
| Interest in joint ventures | |
| 8 | | |
| 8 | |
| Intangible assets | |
| 162 | | |
| 186 | |
| Other receivables and prepayments | |
| 3,123 | | |
| 860 | |
| Other investments | |
| 3,363 | | |
| 3,714 | |
| Deferred tax assets | |
| 991 | | |
| 1,304 | |
| Total non-current assets | |
| 385,295 | | |
| 444,005 | |
| | |
| | | |
| | |
| Total assets | |
| 508,737 | | |
| 549,231 | |
| | |
| | | |
| | |
| LIABILITIES AND EQUITY | |
| | | |
| | |
| Current liabilities | |
| | | |
| | |
| Trade and other payables | |
| 15,036 | | |
| 29,599 | |
| Contract liabilities | |
| 3,121 | | |
| 4,369 | |
| Due to joint ventures | |
| 39 | | |
| 43 | |
| Lease liabilities | |
| 36,414 | | |
| 22,058 | |
| Bank loans and other borrowings | |
| 20,057 | | |
| 33,330 | |
| Retirement benefit obligation | |
| 113 | | |
| 125 | |
| Derivative financial instruments | |
| 117 | | |
| 138 | |
| Provisions | |
| 243 | | |
| 592 | |
| Income tax payable | |
| 291 | | |
| 423 | |
| Total current liabilities | |
| 75,431 | | |
| 90,677 | |
| | |
| | | |
| | |
| Non-current liabilities | |
| | | |
| | |
| Trade and other payables | |
| - | | |
| 140 | |
| Lease liabilities | |
| 3,372 | | |
| 4,055 | |
| Bank loans and other borrowings | |
| 141,023 | | |
| 165,638 | |
| Retirement benefit obligation | |
| 1,105 | | |
| 1,272 | |
| Total non-current liabilities | |
| 145,500 | | |
| 171,105 | |
| | |
| | | |
| | |
| Capital and reserves | |
| | | |
| | |
| Share capital | |
| 320,683 | | |
| 320,683 | |
| Other equity and reserves | |
| (24,407 | ) | |
| (24,686 | ) |
| Accumulated losses | |
| (8,470 | ) | |
| (8,548 | ) |
| Total equity | |
| 287,806 | | |
| 287,449 | |
| | |
| | | |
| | |
| Total equity and liabilities | |
| 508,737 | | |
| 549,231 | |
Unaudited
Condensed Consolidated Statement of Profit or Loss
| | |
Three months ended June 30, | | |
Six months ended June 30, | |
| (In thousands of U.S. dollars, other than per share data) | |
2023 | | |
2022 | | |
2023 | | |
2022 | |
| | |
| | |
| | |
| | |
| |
| Revenue | |
$ | 109,065 | | |
$ | 161,582 | | |
$ | 185,850 | | |
$ | 271,868 | |
| Cost of sales | |
| | | |
| | | |
| | | |
| | |
| Voyage expenses | |
| (17,935 | ) | |
| (22,712 | ) | |
| (35,807 | ) | |
| (46,389 | ) |
| Vessel operating costs | |
| (11,246 | ) | |
| (10,699 | ) | |
| (23,435 | ) | |
| (22,102 | ) |
| Charter hire costs | |
| (3,159 | ) | |
| (18,579 | ) | |
| (7,316 | ) | |
| (34,533 | ) |
| Depreciation of ships, drydocking and plant and equipment– owned assets | |
| (6,274 | ) | |
| (7,262 | ) | |
| (13,785 | ) | |
| (15,474 | ) |
| Depreciation of ships and ship equipment – right-of-use assets | |
| (7,804 | ) | |
| (8,779 | ) | |
| (15,611 | ) | |
| (17,527 | ) |
| Other income (expenses) | |
| (313 | ) | |
| 971 | | |
| (74 | ) | |
| (621 | ) |
| Cost of ship sale | |
| (45,888 | ) | |
| (29,925 | ) | |
| (66,343 | ) | |
| (29,925 | ) |
| Gross profit | |
| 16,446 | | |
| 64,597 | | |
| 23,479 | | |
| 105,297 | |
| Other operating income | |
| 217 | | |
| 4,096 | | |
| 125 | | |
| 3,783 | |
| Administrative expense | |
| (7,007 | ) | |
| (7,629 | ) | |
| (14,009 | ) | |
| (15,890 | ) |
| Share of losses of joint ventures | |
| - | | |
| (1 | ) | |
| - | | |
| 1 | |
| Interest income | |
| 630 | | |
| 166 | | |
| 984 | | |
| 269 | |
| Interest expense | |
| (4,517 | ) | |
| (4,305 | ) | |
| (9,040 | ) | |
| (7,374 | ) |
| Profit before taxation | |
| 5,769 | | |
| 56,924 | | |
| 1,539 | | |
| 86,086 | |
| Income tax expense | |
| (228 | ) | |
| (160 | ) | |
| (292 | ) | |
| (291 | ) |
| Profit for the period | |
| 5,541 | | |
| 56,764 | | |
| 1,247 | | |
| 85,795 | |
| | |
| | | |
| | | |
| | | |
| | |
| Profit per share attributable to owners of the Company: | |
| | | |
| | | |
| | | |
| | |
| Basic | |
$ | 0.28 | | |
$ | 2.99 | | |
$ | 0.06 | | |
$ | 4.56 | |
| Diluted | |
$ | 0.28 | | |
$ | 2.92 | | |
$ | 0.06 | | |
$ | 4.45 | |
Unaudited
Condensed Consolidated Statement of Cash Flows
| For the six months ended 30 June | |
2023 | | |
2022 | |
| | |
US$’000 | | |
US$’000 | |
| Operating activities | |
| | | |
| | |
| Profit for the period | |
| 1,247 | | |
| 85,795 | |
| Adjustments for: | |
| | | |
| | |
| Share of losses of joint ventures | |
| - | | |
| (1 | ) |
| Gain on disposal of ships | |
| (9,862 | ) | |
| (57 | ) |
| Gain on disposal of plant and equipment, furniture and fittings and motor vehicles | |
| - | | |
| (30 | ) |
| Depreciation and amortisation | |
| 30,355 | | |
| 33,543 | |
| Reversal of impairment loss recognised on ships | |
| - | | |
| (4,073 | ) |
| Reversal of impairment loss recognised on financial assets | |
| - | | |
| (30 | ) |
| Provision for onerous contracts reversed | |
| (349 | ) | |
| (25 | ) |
| Recognition of share-based payments expense | |
| - | | |
| 1,392 | |
| Net foreign exchange (gain) loss | |
| (167 | ) | |
| 117 | |
| Interest expense | |
| 9,040 | | |
| 7,374 | |
| Interest income | |
| (984 | ) | |
| (269 | ) |
| Income tax expense | |
| 292 | | |
| 291 | |
| Operating cash flows before movements in working capital and ships | |
| 29,572 | | |
| 124,027 | |
| Inventories | |
| 2,743 | | |
| (6,167 | ) |
| Trade receivables, other receivables and prepayments | |
| 10,435 | | |
| (7,722 | ) |
| Contract assets | |
| 121 | | |
| 578 | |
| Trade and other payables | |
| (13,636 | ) | |
| 132 | |
| Contract liabilities | |
| (1,248 | ) | |
| 4,598 | |
| Due to related parties | |
| (195 | ) | |
| - | |
| Operating cash flows before movement in ships | |
| 27,792 | | |
| 115,446 | |
| Capital expenditure on ships | |
| (2,310 | ) | |
| (1,041 | ) |
| Proceeds from disposal of ships | |
| 73,601 | | |
| 29,481 | |
| Net cash generated from operations | |
| 99,083 | | |
| 143,886 | |
| Interest paid | |
| (9,027 | ) | |
| (6,059 | ) |
| Interest received | |
| 984 | | |
| 269 | |
| Income tax paid | |
| (273 | ) | |
| (266 | ) |
| Net cash flows generated from operating activities | |
| 90,767 | | |
| 137,830 | |
| | |
| | | |
| | |
| Investing activities | |
| | | |
| | |
| Repayment of loans and amount due from joint ventures | |
| - | | |
| 39 | |
| Purchase of plant and equipment | |
| (48 | ) | |
| (85 | ) |
| Purchase of intangible assets | |
| (85 | ) | |
| (75 | ) |
| Proceeds from disposal of plant and equipment | |
| - | | |
| 62 | |
| Net cash used in investing activities | |
| (133 | ) | |
| (59 | ) |
| | |
| | | |
| | |
| Financing activities | |
| | |
| |
| Payment of principal portion of bank loans and other borrowings | |
| (37,901 | ) | |
| (38,295 | ) |
| Principal repayments on lease liabilities | |
| (17,571 | ) | |
| (20,656 | ) |
| Restricted cash | |
| 2,981 | | |
| (133 | ) |
| Dividends paid | |
| (1,169 | ) | |
| (22,561 | ) |
| Net cash flows used in financing activities | |
| (53,660 | ) | |
| (81,645 | ) |
| | |
| | | |
| | |
| Net increase in cash and cash equivalents | |
| 36,974 | | |
| 56,126 | |
| 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 | |
| (208 | ) | |
| (340 | ) |
| Cash and cash equivalents at the end of the period | |
| 83,327 | | |
| 160,029 | |
Non-GAAP
Financial Measures
The
financial information included in this press release includes certain “non-GAAP financial measures” as such term is defined
in SEC regulations governing the use of non-GAAP financial measures. Generally, a non-GAAP financial measure is a numerical measure of
a company’s operating performance, financial position or cash flows that excludes or includes amounts that are included in, or
excluded from, the most directly comparable measure calculated and presented in accordance with IFRS. For example, non-GAAP financial
measures may exclude the impact of certain non-operating items such as acquisitions, divestitures, restructuring charges, large write-offs
or items outside of management’s control. Management believes that the non-GAAP financial measures described below provide investors
and analysts useful insight into our financial position and operating performance.
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 June 30, 2023 and 2022.
| | |
Three months ended June 30, | |
| | |
2023 | | |
2022 | |
(In thousands of U.S. dollars) | |
Revenue | | |
Voyage Expenses | | |
TCE Revenue | | |
Revenue | | |
Voyage Expenses | | |
TCE Revenue | |
| Vessel revenue | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Handysize | |
| 22,328 | | |
| (5,865 | ) | |
| 16,463 | | |
| 52,446 | | |
| (9,579 | ) | |
| 42,867 | |
| Supramax/ultramax | |
| 34,436 | | |
| (12,070 | ) | |
| 22,366 | | |
| 78,246 | | |
| (13,133 | ) | |
| 65,113 | |
| Other | |
| - | | |
| | | |
| | | |
| 788 | | |
| | | |
| | |
| Ship sale revenue | |
| 52,273 | | |
| | | |
| | | |
| 29,981 | | |
| | | |
| | |
| Other revenue | |
| 28 | | |
| | | |
| | | |
| 121 | | |
| | | |
| | |
| Revenue | |
| 109,065 | | |
| | | |
| | | |
| 161,582 | | |
| | | |
| | |
Below
is a reconciliation from revenue to TCE revenue for the six month periods ended June 30, 2023 and 2022.
| | |
Six months ended June 30, | |
| | |
2023 | | |
2022 | |
(In thousands of U.S. dollars) | |
Revenue | | |
Voyage Expenses | | |
TCE Revenue | | |
Revenue | | |
Voyage Expenses | | |
TCE Revenue | |
| Vessel revenue | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Handysize | |
| 42,519 | | |
| (12,579 | ) | |
| 29,940 | | |
| 88,637 | | |
| (14,866 | ) | |
| 73,771 | |
| Supramax/ultramax | |
| 67,047 | | |
| (23,228 | ) | |
| 43,819 | | |
| 150,990 | | |
| (31,522 | ) | |
| 119,468 | |
| Other | |
| - | | |
| | | |
| | | |
| 2,082 | | |
| | | |
| | |
| Ship sale revenue | |
| 76,205 | | |
| | | |
| | | |
| 29,981 | | |
| | | |
| | |
| Other revenue | |
| 79 | | |
| | | |
| | | |
| 178 | | |
| | | |
| | |
| Revenue | |
| 185,850 | | |
| | | |
| | | |
| 271,868 | | |
| | | |
| | |
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 Profit for the period to EBITDA and Adjusted EBITDA for the three month periods ended
June 30, 2023 and 2022 and six months ended June 30, 2023 and 2022.
| | |
Three months ended June 30, | | |
Six months ended June 30, | |
| (In thousands of U.S. dollars) | |
2023 | | |
2022 | | |
2023 | | |
2022 | |
| Profit for the period | |
$ | 5,541 | | |
$ | 56,764 | | |
$ | 1,247 | | |
$ | 85,795 | |
| Adjusted for: | |
| | | |
| | | |
| | | |
| | |
| Income tax expense | |
| 228 | | |
| 160 | | |
| 292 | | |
| 291 | |
| Interest income | |
| (630 | ) | |
| (166 | ) | |
| (984 | ) | |
| (269 | ) |
| Interest expense | |
| 4,517 | | |
| 4,305 | | |
| 9,040 | | |
| 7,374 | |
| Share of losses of joint ventures | |
| - | | |
| 1 | | |
| - | | |
| (1 | ) |
| Depreciation and amortization | |
| 14,644 | | |
| 16,308 | | |
| 30,355 | | |
| 33,543 | |
| | |
| | | |
| | | |
| | | |
| | |
| EBITDA | |
| 24,300 | | |
| 77,372 | | |
| 39,950 | | |
| 126,733 | |
| | |
| | | |
| | | |
| | | |
| | |
| Adjusted for | |
| | | |
| | | |
| | | |
| | |
| Reversal of impairment recognized on ships | |
| - | | |
| (4,073 | ) | |
| - | | |
| (4,073 | ) |
| Share-based compensation | |
| - | | |
| 598 | | |
| - | | |
| 1,392 | |
| | |
| | | |
| | | |
| | | |
| | |
| Adjusted EBITDA | |
| 24,300 | | |
| 73,897 | | |
| 39,950 | | |
| 124,052 | |
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 profit for the period attributable to the owners of the Company to Adjusted net income
for the three month periods ended June 30, 2023 and 2022 and six months ended June 30, 2023 and 2022.
| | |
Three months ended June 30, | | |
Six months ended June 30, | |
| (In thousands of U.S. dollars) | |
2023 | | |
2022 | | |
2023 | | |
2022 | |
| | |
| | |
| | |
| | |
| |
| Profit for the period | |
$ | 5,541 | | |
$ | 56,764 | | |
$ | 1,247 | | |
$ | 85,795 | |
| Adjusted for: | |
| | | |
| | | |
| | | |
| | |
| Reversal of impairment loss recognized on ships | |
| - | | |
| (4,073 | ) | |
| - | | |
| (4,073 | ) |
| Share based compensation | |
| - | | |
| 598 | | |
| - | | |
| 1,392 | |
| Adjusted net income | |
| 5,541 | | |
| 53,289 | | |
| 1,247 | | |
| 83,114 | |
| | |
| | | |
| | | |
| | | |
| | |
| Weighted average number of shares on which the profit per share and adjusted earnings per share has been calculated | |
| 19,472,008 | | |
| 18,958,025 | | |
| 19,472,008 | | |
| 18,819,474 | |
| Effect of dilutive potential ordinary shares | |
| - | | |
| 460,637 | | |
| - | | |
| 460,637 | |
| Weighted average number of ordinary shares for the purpose of calculating diluted profit per share and diluted adjusted earnings per share | |
| 19,472,008 | | |
| 19,418,662 | | |
| 19,472,008 | | |
| 19,280,111 | |
| | |
| | | |
| | | |
| | | |
| | |
| Basic profit per share | |
$ | 0.28 | | |
$ | 2.99 | | |
$ | 0.06 | | |
$ | 4.56 | |
| Diluted profit per share | |
| 0.28 | | |
| 2.92 | | |
$ | 0.06 | | |
$ | 4.45 | |
| | |
| | | |
| | | |
| | | |
| | |
| Basic adjusted earnings per share | |
$ | 0.28 | | |
$ | 2.81 | | |
$ | 0.06 | | |
$ | 4.42 | |
| Diluted adjusted earnings per share | |
| 0.28 | | |
| 2.74 | | |
$ | 0.06 | | |
$ | 4.31 | |
Headline
earnings and Headline earnings per share
The
Johannesburg Stock Exchange, or JSE, requires that we calculate and publicly disclose Headline earnings per share and diluted Headline
earnings per share. Headline earnings per share is calculated using net income which has been determined based on IFRS. Accordingly,
this may differ to the Headline earnings per share calculation of other companies listed on the JSE because such companies may report
their financial results under a different financial reporting framework such as U.S. GAAP.
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 Profit for the period attributable to owners of the Company to Headline earnings for the
three month periods ended June 30, 2023 and 2022 and six months ended June 30, 2023 and 2022.
| | |
Three months ended June 30, | | |
Six months ended June 30, | |
| (In thousands of U.S. dollars, except per share data) | |
2023 | | |
2022 | | |
2023 | | |
2022 | |
| | |
| | |
| | |
| | |
| |
| Profit for the period | |
$ | 5,541 | | |
$ | 56,764 | | |
$ | 1,247 | | |
$ | 85,795 | |
| Reversal of Impairment loss recognized on ships | |
| - | | |
| (4,073 | ) | |
| - | | |
| (4,073 | ) |
| Headline earnings | |
| 5,541 | | |
| 52,691 | | |
| 1,247 | | |
| 81,722 | |
| | |
| | | |
| | | |
| | | |
| | |
| Weighted average number of shares on which the profit per share and headline earnings per share has been calculated | |
| 19,472,008 | | |
| 18,958,025 | | |
| 19,472,008 | | |
| 18,819,474 | |
| Effect of dilutive potential ordinary shares | |
| - | | |
| 460,637 | | |
| - | | |
| 460,637 | |
| Weighted average number of ordinary shares for the purpose of calculating diluted profit per share and diluted headline earnings per share | |
| 19,472,008 | | |
| 19,418,662 | | |
| 19,472,008 | | |
| 19,280,111 | |
| | |
| | | |
| | | |
| | | |
| | |
| Basic profit per share | |
$ | 0.28 | | |
$ | 2.99 | | |
$ | 0.06 | | |
$ | 4.56 | |
| Diluted profit per share | |
| 0.28 | | |
| 2.92 | | |
$ | 0.06 | | |
$ | 4.45 | |
| | |
| | | |
| | | |
| | | |
| | |
| Basic headline earnings per share | |
$ | 0.28 | | |
$ | 2.78 | | |
$ | 0.06 | | |
$ | 4.34 | |
| Diluted headline earnings per share | |
| 0.28 | | |
| 2.71 | | |
$ | 0.06 | | |
$ | 4.24 | |
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 Grindrod Shipping at the time these statements were made. Although Grindrod Shipping believes that the expectations reflected in such
forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. These statements
involve known and unknown risks and are based upon a number of assumptions and estimates which are inherently subject to significant
uncertainties and contingencies, many of which are beyond the control of Grindrod Shipping. Actual results may differ materially from
those expressed or implied by such forward-looking statements. Important factors that could cause actual results to differ materially
from estimates or projections contained in the forward-looking statements include, without limitation, Grindrod Shipping’s future
operating or financial results; the strength of world economies, including, in particular, in China and the rest of the Asia-Pacific
region; the effects of the COVID-19 pandemic on our operations and the demand and trading patterns for the drybulk market, and the duration
of these effects; cyclicality of the drybulk market, including general drybulk shipping market conditions and trends, including fluctuations
in charter hire rates and vessel values; changes in supply and demand in the drybulk shipping industry, including the market for Grindrod
Shipping’s vessels; changes in the value of Grindrod Shipping’s vessels; changes in Grindrod Shipping’s business strategy
and expected capital spending or operating expenses, including drydocking, surveys, upgrades and insurance costs; competition within
the drybulk industry; seasonal fluctuations within the drybulk industry; Grindrod Shipping’s ability to employ its vessels in the
spot market and its ability to enter into time charters after its current charters expire; general economic conditions and conditions
in the oil and coal industries; Grindrod Shipping’s ability to satisfy the technical, health, safety and compliance standards of
its customers; the failure of counterparties to our contracts to fully perform their obligations with Grindrod Shipping; Grindrod Shipping’s
ability to execute its growth strategy; international political and economic conditions including additional tariffs imposed by China
and the United States; potential disruption of shipping routes due to weather, accidents, political events, natural disasters or other
catastrophic events; vessel breakdowns; corruption, piracy, military conflicts, political instability and terrorism in locations where
we may operate, including the recent conflicts between Russia and Ukraine and tensions between China and Taiwan; fluctuations in interest
rates and foreign exchange; changes in the costs associated with owning and operating Grindrod Shipping’s vessels; changes in,
and Grindrod Shipping’s compliance with, governmental, tax, environmental, health and safety regulations including the International
Maritime Organization, or IMO 2020, regulations limiting sulfur content in fuels; potential liability from pending or future litigation;
Grindrod Shipping’s ability to procure or have access to financing, its liquidity and the adequacy of cash flows for its operation;
the continued borrowing availability under Grindrod Shipping’s debt agreements and compliance with the covenants contained therein;
Grindrod Shipping’s ability to fund future capital expenditures and investments in the construction, acquisition and refurbishment
of its vessels; Grindrod Shipping’s dependence on key personnel; Grindrod Shipping’s expectations regarding the availability
of vessel acquisitions and its ability to buy and sell vessels and to charter-in vessels as planned or at prices we deem satisfactory;
adequacy of Grindrod Shipping’s insurance coverage; effects of new technological innovation and advances in vessel design; and
the other factors set out in “Item 3. Key Information-Risk Factors” in our Annual Report on Form 20-F for the year ended
December 31, 2022 filed with the Securities and Exchange Commission on March 23, 2023. Grindrod Shipping undertakes no obligation
to update publicly or release any revisions to these forward-looking statements to reflect events or circumstances after the date of
this press release or to reflect the occurrence of unanticipated events except as required by law.
Company
Contact:
Edward
Buttery
CEO
Grindrod
Shipping Holdings Ltd.
1
Temasek Avenue, #10-02 Millenia Tower,
Singapore,
039192
Email:
ir@grindrodshipping.com
Website:
www.grinshipping.com |
Investor
Relations:
Email:
ir@grindrodshipping.com |
Grindrod Shipping (NASDAQ:GRIN)
과거 데이터 주식 차트
부터 4월(4) 2024 으로 5월(5) 2024
Grindrod Shipping (NASDAQ:GRIN)
과거 데이터 주식 차트
부터 5월(5) 2023 으로 5월(5) 2024
