TIDMHCL

RNS Number : 0036O

Hellenic Carriers Limited

12 September 2011

Hellenic Carriers Limited

Press Release 12 September 2011

HELLENIC CARRIERS LIMITED REPORTS 2011 INTERIM UNAUDITED RESULTS

Hellenic Carriers Limited, ("Hellenic" or the "Company") (AIM: HCL), an international provider of marine transportation services, which owns and operates through its wholly owned subsidiaries a fleet of five dry bulk vessels that transport iron ore, grain, steel products and minor bulk cargoes, is pleased to report today its Interim Unaudited Results for the six months ended 30 June 2011.

The Company's management will be holding a conference call and webcast today at 1.30pm (BST), 3.30pm (Athens) and 8.30am (EDT).

Financial Highlights

20 US$20.8 million Revenue (H1 2010: US$30.6 million)

20 US$12.2 million EBITDA[1] (H1 2010: US$20.2 million)

20 US$5.5 million Operating Profit (H1 2010: US$12.8 million)

20 US$3.1 million Net Income (H1 2010: US$10.0 million)

20 Earnings per share of US$0.07 (H1 2010: US$0.22)

20 Cash reserves[2] of US$49.1 million as of 30 June 2011 (US$60.0 million as of 31 December 2010)

20 US$94.5 debt balance as of 30 June 2011 (US$105.3 million as of 31 December 2010)

20 Gearing Ratio[3] of 26.6% as of 30 June 2011 (26.5% as of 31 December 2010)

20 Signing of loan agreements for the financing of the two new-building Kamsarmax vessels

Operational Highlights

20 Operation of a fleet of an average of 5.0 vessels during H1 2011 compared to an average of 6.0 vessels in H1 2010

20 Time Charter Equivalent rate of US$21,397 (H1 2010: US$26,589) outperforming the Panamax and Supramax industry average Time Charter earnings of H1 2011 (US$14,254 and US$14,476 respectively)[4]

20 Fleet utilization of 99.2% (H1 2010: 99.0%)

Management Commentary

Fotini Karamanli, Chief Executive Officer, commented: "Since early 2011 the dry bulk market has been subjected to considerable downward pressure resulting in poor freight rates, especially in the capesize sector. The dry bulk market is now experiencing the effects of oversupply of vessels, mainly ordered during the boom years. This development comes as no surprise since the overhang of the order book was causing concerns for a number of years. However, in this depressed environment there are positive signs which we should not fail to consider.

"The most important is that demand remains robust with the developing countries in the East achieving impressive growth rates and hence importing significant volumes of raw materials. Should it not be for this strong demand and given the number of new vessels entering the market, the freight levels would undoubtedly be much lower. The second positive factor is the considerable increase in scrapping activity whilst scrap prices remain at very high levels. We should not forget that around 20% of the current fleet is over 20 years of age. Last but not least, the financial crisis which has a knock on effect limiting the liquidity available for the construction of new vessels. All these factors bear significance for the future of the dry bulk market.

"Against this climate, Hellenic is pleased to report healthy financial and operational results for H1 2011. During the period in question, some of the vessels continued to generate strong cash flows from charter agreements entered into prior to the market downturn. Since these charters have come to an end, we have traded the vessels in the spot market, avoiding long term commitments at low rates. However there will be volatility in the freight market, hence triggering opportunities for longer term fixtures.

"Due to the lucrative charters mentioned above, the company has accumulated reserves which will not only assist our operations in challenging times but also enable us to take advantage of acquisition opportunities as they arise. In 2010 we took advantage of the strong market and sold one of the older units, whilst at the same time placing orders for two new-building Kamsarmax vessels.

"We plan to continue with our fleet renewal program acting prudently and aiming to maximize long term value for all our shareholders."

Fleet Developments

As at the date of this release, the Company owns and operates through its subsidiaries a fleet of five dry bulk carriers including three Panamaxes, one Supramax and one Handymax with an aggregate carrying capacity of 303,141 dwt and a weighted average age of 15.9 years. In addition, subsidiaries of the Company have placed orders for the construction of two Kamsarmax vessels with an aggregate carrying capacity of about 164,000 dwt.

Following the delivery of the two Kamsarmax vessels scheduled for Q1 2013, the fleet will expand to seven dry bulk vessels with an aggregate carrying capacity of about 467,141 dwt and a weighted average age of 12.5 years (as of 31 March 2013).

Current fleet details:

 
                                Operating Fleet 
------------------------------------------------------------------------------ 
                                                                     Carrying 
                                                             Year     Capacity 
        Vessel             Type              Yard            Built     (dwt) 
----------------------  ----------  ---------------------  -------  ---------- 
                                     Tsuneishi 
                                      Shipbuilding, 
 M/V Hellenic Wind       Panamax      Japan                 1997        73,981 
----------------------  ----------  ---------------------  -------  ---------- 
 M/V Konstantinos                    Mitsui Engineering & 
  D                      Supramax     Shipbuilding, Japan   2000        50,326 
----------------------  ----------  ---------------------  -------  ---------- 
                                     Halla Engineering & 
                                      Heavy Industries, 
 M/V Hellenic Horizon    Handymax     Korea                 1995        44,809 
----------------------  ----------  ---------------------  -------  ---------- 
                                     Sasebo Heavy 
 M/V Hellenic Sky        Panamax      Industries, Japan     1994        68,591 
----------------------  ----------  ---------------------  -------  ---------- 
                                     Jiangnan Shipyard, 
 M/V Hellenic Sea        Panamax      China                 1991        65,434 
----------------------  ----------  ---------------------  -------  ---------- 
 Total Operating Fleet: 5 Vessels                                      303,141 
------------------------------------------------------------------  ---------- 
 
 
                               Vessels on Order 
------------------------------------------------------------------------------ 
                                                                     Carrying 
                                                                      Capacity 
    Type                 Yard               Scheduled Delivery(1)      (dwt) 
-----------  ----------------------------  -----------------------  ---------- 
              Zhejiang Ouhua Shipbuilding 
 Kamsarmax     Co. Ltd., China                        January 2013      82,000 
-----------  ----------------------------  -----------------------  ---------- 
              Zhejiang Ouhua Shipbuilding 
 Kamsarmax     Co. Ltd., China                          March 2013      82,000 
-----------  ----------------------------  -----------------------  ---------- 
 Total Vessels on Order: 2 Vessels                                     164,000 
------------------------------------------------------------------  ---------- 
 (1) As per shipbuilding contract 
 

Fleet Deployment:

The Panamax vessel M/V Hellenic Sky is currently on time charter to Bunge S.A. at a daily gross rate of US$16,000. The charter commenced on 9 March 2011 and the vessel is expected to be redelivered to her Owners in early October. The latest expiration date is 9 November 2011.

The other vessels are currently trading in the spot market employed under time charter trips for the performance of single or consecutive laden legs.

The Fleet Deployment of Hellenic is summarized below:

 
                               Fleet Deployment 
------------------------------------------------------------------------------ 
    Vessel        Type      Charter      Earliest       Daily       Charterer 
                              Type      Expiration     Charter 
                                           Date       Rate US$ 
                                                       (Gross) 
-------------  ---------  -----------  -----------  ------------  ------------ 
 M/V Hellenic   Panamax       Time          -         11,750(1)    Transgrain 
  Wind                      Charter                                 Shipping 
                             for 2                                     BV 
                             laden 
                              legs 
-------------  ---------  -----------  -----------  ------------  ------------ 
 M/V            Supramax      Time          -         14,250(2)      Western 
 Konstantinos               Charter                                 Bulk PTE 
 D                           for 2                                     LTD 
                             laden 
                              legs 
-------------  ---------  -----------  -----------  ------------  ------------ 
 M/V Hellenic   Handymax      Spot          -             -             - 
  Horizon 
-------------  ---------  -----------  -----------  ------------  ------------ 
 M/V Hellenic   Panamax       Time          9          16,000      Bunge S.A. 
  Sky                       Charter     September 
                                         2011(3) 
-------------  ---------  -----------  -----------  ------------  ------------ 
 M/V Hellenic   Panamax       Spot          -             -             - 
  Sea 
-------------  ---------  -----------  -----------  ------------  ------------ 
 (1) If the duration of the two laden legs exceeds 100 days the 
  time charter rate increases to US$12,500 per day for the 
  period thereafter. 
    (2) The charterers have the option to execute a third laden leg, 
     in which case the time charter rate increases to US$14,500 for 
     the third leg. 
    (3) The vessel is expected to be redelivered to her Owners in early 
     October. 
 

Interim 2011 Results

During the six months ended 30 June 2011, Hellenic through its subsidiaries had in operation an average of 5.0 in comparison to 6.0 vessels during the six months ended 30 June 2010. The 1993 built Panamax vessel M/V Hellenic Breeze was sold in August 2010. As a consequence fleet ownership days dropped by 16.7% to 905 from 1,086 reported for the first half of 2010.

For the six months ended 30 June 2011, Hellenic reported revenues of US$20.8 million compared to US$30.6 million for H1 2010. The reduction in revenue is partly attributable to the decrease in the number of vessels operated but is also a result of the depressed dry bulk freight rates. We note that between 30 June 2010 and 30 June 2011, the Baltic Dry Index (BDI) declined by 41.3% from 2,406 to 1,413.

In this environment, Hellenic benefited from the continuation of charters agreed prior to the market downturn in Q4 2008, namely the M/V Konstantinos D charter at US$35,000 gross per day which terminated in mid January 2011 and the M/V Hellenic Wind charter at US$54,000 gross per day. The latter charter terminated in mid April 2011, one month earlier than the contractually agreed redelivery date, however charterers Messrs Hanjin Shipping Co Ltd. have already compensated the Owners by paying for the damages resulting from the early redelivery of the vessel. The vessel has since been trading in the spot market.

During the same period the M/V Hellenic Sea was employed under the SetSea charter (at a gross daily rate of US$23,300), which terminated in March 2011, a month earlier than the agreed redelivery date. The charterers have already compensated the Owners by paying the relevant amount of damages for early redelivery. The vessel has since been trading in the spot market.

The other vessels are all trading in the spot market for the performance of single or consecutive laden legs. The long term commitment of the vessels has been avoided due to the depressed current market levels.

During the first half of 2011 the vessels earned an average TCE of US$21,397 per vessel per day compared to US$26,589 per vessel per day during the corresponding period of 2010.

The fleet utilization for H1 2011 was 99.2% compared to 99.0% for H1 2010.

Voyage expenses in H1 2011 amounted to US$2.1 million compared to US$3.3 million in H1 2010, a decrease of about 36.4%, which is in line with the reduction in revenue and fleet size.

As a result of the decrease in ownership days, vessel operating expenses for H1 2011 dropped by US$0.5 million to a total of US$4.9 million. On a per day basis operating expenses increased by 9.4% from US$4,910 in H1 2010 to US$5,370 in H1 2011.

The Company's general and administrative expenses in H1 2011 were US$1.0 million, in line with H1 2010.

EBITDA generated amounted to US$12.2 million compared to US$20.2 million for H1 2010, a decrease of 39.6% and net income was US$3.1 million compared to US$10.0 million for H1 2010, a decrease of 69.0%.

Basic and diluted earnings per share calculated on 45,616,851 weighted average number of shares were US$0.07 for H1 2011 compared to earnings per share of US$0.22 for H1 2010.

Fleet Operating Data:

 
                                            H1 2011   H1 2010 
-----------------------------------------  --------  -------- 
 Fleet data: 
-----------------------------------------  --------  -------- 
 Average number of operating vessels            5.0       6.0 
-----------------------------------------  --------  -------- 
 Number of operating vessels at period 
  end                                           5.0       6.0 
-----------------------------------------  --------  -------- 
 Number of vessels under construction 
  at period end                                 2.0       2.0 
-----------------------------------------  --------  -------- 
 Total dwt at period end                    303,141   372,742 
-----------------------------------------  --------  -------- 
 Ownership days (1)                             905     1,086 
-----------------------------------------  --------  -------- 
 Available days (2)                             874     1,026 
-----------------------------------------  --------  -------- 
 Operating days (3)                             867     1,016 
-----------------------------------------  --------  -------- 
 Fleet utilisation (4)                        99.2%     99.0% 
-----------------------------------------  --------  -------- 
 
 Average daily results (in US$): 
-----------------------------------------  --------  -------- 
 Time Charter Equivalent (TCE) rate 
  (5)                                        21,397    26,589 
-----------------------------------------  --------  -------- 
 Average daily vessel operating expenses 
  (6)                                         5,370     4,910 
-----------------------------------------  --------  -------- 
 

(1) Ownership days are the cumulative days in a period during which each vessel is owned by the respective vessel owning company.

(2) Available days are ownership days less the days that the vessels are at scheduled off-hire for maintenance or vessel repositioning.

(3) Operating days are the available days less all unforeseen off-hires.

(4) Fleet utilisation is measured by dividing the vessels' operating days by the vessels' available days.

(5) TCE is defined as vessels' total revenues less voyage expenses divided by the number of the available days for the period.

(6) Average daily vessel operating expenses is defined as vessel operating expenses divided by ownership days.

Debt / Financing Activities & Capitalisation

In 2010, following the signing of the shipbuilding contacts for the construction of the two Kamsarmax vessels, the Company paid advances to the yard representing 40% of the vessels' contract price. In H1 2011, loan agreements were signed by two subsidiaries of the Company with Credit Agricole Corporate and Investment Bank securing financing of up to 65% of each vessel's value upon delivery or maximum US$22.1 million per vessel. Such amounts shall be drawn down upon delivery of each new-building from the yard to the respective owning company. Hence, final commitments payable to the yard upon delivery of the vessels in Q1 2013 have been secured.

In terms of principal instalments, during the first six months of 2011, the Company and its subsidiaries paid to their lenders the aggregate amount of US$6.2 million representing regular instalments and an additional amount of US$4.7 million calculated on the excess earnings of the fleet for previous periods.

Debt balance as of 30 June 2011 was US$94.5 million compared to US$105.3 million on 31 December 2010. The remaining scheduled principal repayments until the end of 2011 is US$6.2 million. Unencumbered cash balance at 30 June 2011 was US$44.0 million compared to US$59.0 million at 31 December 2010.

Restricted cash reported at 30 June 2011 was US$5.1 million. Out of this amount, US$1.7 million represents funds held in retention account for the repayment of the next debt instalment and interest due under one of the existing loan agreements. The amount of US$3.4 million is retained against issuance of a Bank Guarantee of US$3.1 million provided to Setsea SpA, the ex charterers of the vessel M/V Hellenic Sea as security, pending the outcome of the arbitration proceedings already commenced in London between Owners / Charterers / Sub-charterers on the occasion of vessel's accident in the Amazon River in July 2010. Input from legal advisors is supportive to Owners' position, therefore, as of date, the Company has not recorded a provision in the interim financial statements.

Net debt as of 30 June 2011 was calculated at US$45.4 million in line with net debt as of 31 December 2010 and the Company's gearing ratio[5] remains stable at 26.6% compared to 26.5% on 31 December 2010.

With respect to the accident of the M/V Hellenic Sea in the Amazon River in July 2010, the Adjustment of Owners' claim of US$3.5 million is being processed.

No dry-dockings were performed in H1 2011.

Dividend

Further to AGM's approval, the final dividend for 2010 in the total amount of GBP 2,486,118 or GBP 5.45 pence per share was paid on 20 May 2011 to the shareholders on record as of 26 April 2011.

The Directors of the Company do not recommend an interim dividend payment for 2011 in order to reinforce the Company's liquidity in a depressed market and optimize the use of cash when market opportunities arise. A decision with regard to the recommendation of a final dividend will be taken prior to the announcement of the year ended 31 December 2011 results.

Conference Call details:

Participants should dial into the call 10 minutes prior to the scheduled time using the following numbers: 0800-953-0329 (UK Toll Free Dial-in), 00800-4413-1378 (Greece Toll Free Dial-in), 1-866-819-7111 (US Toll Free Dial-in), or +44 (0)1452-542-301 (Standard International Dial-in). Please quote "Hellenic Carriers".

In case of any problems with the above numbers, please dial 0800-694-1503 (UK Toll Free Dial-in), 00800-127-011(Greece Toll Free Dial-in), 1-866-223-0615 (US Toll Free Dial-in), or +44 (0)1452-586-513 (Standard International Dial-in). Please quote "Hellenic Carriers".

A telephonic replay of the conference call will be available until 19 September 2011 by dialling 0800-953-1533 (UK Toll Free Dial-in), 1-866-247-4222 (US Toll Free Dial-in), or +44 (0)1452-550-000 (Standard International Dial-in). Access Code: 36347958#

Slides and audio webcast:

There will also be a live and then archived webcast of the conference call, accessible through the Hellenic Carriers website (www.hellenic-carriers.com). Participants to the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.

For further information please contact:

Hellenic Carriers Limited

Fotini Karamanli, Chief Executive Officer

Elpida Kyriakopoulou, Chief Financial Officer

E-mail: info@hellenic-carriers.com +30 210 455 8900

Panmure Gordon (UK) Limited

Andrew Godber / Brett Jacobs +44 (0) 20 7459 3600

Capital Link

Nicolas Bornozis +1 212 661 7566 (New York)

Annie Evangeli +44 (0) 20 3206 1320 (London)

E-mail: helleniccarriers@capitallink.com

Further Information - Notes to Editors

About Hellenic Carriers Limited

Hellenic Carriers Limited manages through Hellenic Shipmanagement Corp. a fleet of dry bulk vessels that transport iron ore, coal, grain, steel products, cement, alumina, and other dry bulk cargoes worldwide. The fleet consists of five vessels, comprising three Panamaxes, one Supramax and one Handymax with an aggregate carrying capacity of 303,141 dwt and a weighted average age of 15.9 years plus two new building vessels currently on order, both Kamsarmaxes with an aggregate carrying capacity of about 164,000 dwt.

Following the delivery of the two Kamsarmax vessels, the Company will manage through Hellenic Shipmanagement Corp. a fleet of seven dry bulk carriers comprising two Kamsarmaxes, three Panamaxes, one Supramax and one Handymax with an aggregate carrying capacity of about 467,141 dwt and a weighted average age of 12.5 years (as of 31 March 2013).

Hellenic Carriers is listed on the AIM of the London Stock Exchange under ticker HCL.

INTERIM CONSOLIDATED INCOME STATEMENT

For the six months ended 30 June 2011

(Amounts expressed in thousands of U.S. Dollars, except share and per share data)

 
                                             30 June 
                                    ------------------------ 
                                           2011         2010 
                                    -----------  ----------- 
                                      Unaudited    Unaudited 
                                        US$'000      US$'000 
 
 Revenue                                 20,825       30,595 
                                    -----------  ----------- 
 
 Expenses and other income 
 Voyage expenses                        (2,124)      (3,314) 
 Vessel operating expenses              (4,860)      (5,332) 
  Management fees - related 
   party                                  (639)        (745) 
 Depreciation                           (5,888)      (6,523) 
  Depreciation of dry-docking 
   costs                                  (903)        (922) 
  General and administrative 
   expenses                               (957)        (974) 
 Operating profit                         5,454       12,785 
 
 Finance expense                        (2,712)      (3,125) 
 Finance income                             313          392 
  Foreign currency gain / (loss), 
   net                                       15         (43) 
                                        (2,384)      (2,776) 
                                    -----------  ----------- 
 Profit for the period                    3,070       10,009 
                                    ===========  =========== 
 
  Earnings per share (US$): 
 Basic and diluted EPS for 
  the year                                 0.07         0.22 
  Weighted average number of 
   shares                            45,616,851   45,616,851 
 

INTERIM CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME For the six months ended 30 June 2011

(Amounts expressed in thousands of U.S. Dollars)

 
                                          30 June 
                                  ---------------------- 
                                        2011        2010 
                                  ----------  ---------- 
                                   Unaudited   Unaudited 
                                     US$'000     US$'000 
 
 Profit for the period                 3,070      10,009 
 Net gain / (loss) on cash flow 
  hedges                                 547     (1,066) 
                                  ----------  ---------- 
 Total comprehensive income for 
  the period                           3,617       8,943 
                                  ==========  ========== 
 

INTERIM CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As at 30 June 2011

(Amounts expressed in thousands of U.S. Dollars)

 
                                              30 June   31 December 
                                           ----------  ------------ 
                                                 2011          2010 
                                           ----------  ------------ 
                                            Unaudited       Audited 
                                              US$'000       US$'000 
 ASSETS 
 Non-current assets 
 Vessels, net                                 139,702       146,491 
 Vessels under construction                    28,226        27,396 
 Office furniture and equipment                     7             8 
                                           ----------  ------------ 
                                              167,935       173,895 
                                           ----------  ------------ 
 Current assets 
 Inventories                                      362           634 
 Trade receivables                              2,379           418 
 Claims receivable                              3,586         3,772 
 Available for sale investments, 
  net of impairment                                 -             - 
 Due from related parties                       2,922         2,496 
 Prepaid expenses and other assets                537           506 
 Restricted cash                                5,086         1,033 
 Cash and cash equivalents                     44,013        58,993 
                                           ----------  ------------ 
                                               58,885        67,852 
                                           ----------  ------------ 
 TOTAL ASSETS                                 226,820       241,747 
                                           ==========  ============ 
 
 EQUITY AND LIABILITIES 
 Equity attributable to shareholders 
  of Hellenic Carriers Limited 
 Issued share capital                              46            46 
 Share premium                                 54,355        54,355 
 Capital contributions                         10,826        10,826 
 Other reserves                               (4,049)       (4,596) 
 Retained earnings                             64,015        64,963 
                                           ----------  ------------ 
 Total equity                                 125,193       125,594 
                                           ----------  ------------ 
 
 Non-current liabilities 
 Long-term debt                                82,100        88,278 
 Other non-current financial liabilities        2,082         2,507 
                                           ----------  ------------ 
                                               84,182        90,785 
                                           ----------  ------------ 
 Current liabilities 
 Trade payables                                 1,435         2,529 
 Current portion of long-term debt             12,359        17,036 
 Current portion of other non-current 
  financial liabilities                         1,966         2,089 
 Accrued liabilities and other payables         1,437         1,709 
 Deferred revenue                                 248         2,005 
                                               17,445        25,368 
                                           ----------  ------------ 
 Total Liabilities                            101,627       116,153 
                                           ----------  ------------ 
 TOTAL EQUITY AND LIABILITIES                 226,820       241,747 
                                           ==========  ============ 
 

INTERIM CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the six months ended 30 June 2011

(Amounts expressed in thousands of U.S. Dollars, except share and per share data)

 
                                       Issued 
                                Par     share     Share       Capital       Other     Retained    Total 
                    Number     value   capital   premium   Contributions   reserves   earnings   equity 
                   of shares    US$    US$'000   US$'000      US$'000      US$'000    US$'000    US$'000 
                 -----------  ------  --------  --------  --------------  ---------  ---------  -------- 
 
 As at 1 
  January 2010    45,616,851   0.001        46    54,355          10,826    (4,108)     40,636   101,755 
                 ===========  ======  ========  ========  ==============  =========  =========  ======== 
 Profit for the 
  period                   -       -         -         -               -          -     10,009    10,009 
 Other 
  comprehensive 
  income                   -       -         -         -               -    (1,066)          -   (1,066) 
 Total 
  comprehensive 
  income                   -       -         -         -               -    (1,066)     10,009     8,943 
 Dividends to 
  equity 
  shareholders             -       -         -         -               -          -    (1,698)   (1,698) 
                 -----------  ------  --------  --------  --------------  ---------  ---------  -------- 
 At 30 June 
  2010            45,616,851   0.001        46    54,355          10,826    (5,174)     48,947   109,000 
                 ===========  ======  ========  ========  ==============  =========  =========  ======== 
 
 At 1 January 
  2011            45,616,851   0.001        46    54,355          10,826    (4,596)     64,963   125,594 
                 ===========  ======  ========  ========  ==============  =========  =========  ======== 
 
 Profit for the 
  period                   -       -         -         -               -          -      3,070     3,070 
 Other 
  comprehensive 
  income                   -       -         -         -               -        547          -       547 
                 -----------  ------  --------  --------  --------------  ---------  ---------  -------- 
 Total 
  comprehensive 
  income                   -       -         -         -               -        547      3,070     3,617 
 
 Dividends to 
  equity 
  shareholders             -       -         -         -               -          -    (4,018)   (4,018) 
 At 30 June 
  2011            45,616,851   0.001        46    54,355          10,826    (4,049)     64,015   125,193 
                 ===========  ======  ========  ========  ==============  =========  =========  ======== 
 
 

.

INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS

For the six months ended 30 June 2011

(Amounts expressed in thousands of U.S. Dollars)

 
                                                           30 June 
                                                   ---------------------- 
                                                         2011        2010 
                                                   ----------  ---------- 
                                                    Unaudited   Unaudited 
                                                   ----------  ---------- 
                                                      US$'000     US$'000 
                                                   ----------  ---------- 
 Operating activities 
 Profit for the period                                  3,070      10,009 
                                                   ----------  ---------- 
 Adjustments to reconcile profit to net 
  cash flows: 
 Depreciation                                           5,888       6,523 
 Depreciation of dry-docking costs                        903         922 
 Finance expense                                        2,712       3,125 
 Finance income                                         (313)       (392) 
                                                       12,260      20,187 
 
 Decrease in inventories                                  272          23 
 (Increase) / Decrease in trade receivables, 
  claims receivable, prepaid expenses and 
  other assets                                        (1,826)         721 
 Increase in due from related parties                   (426)        (92) 
 Decrease in trade payables, accrued liabilities 
  and other payables                                  (1,327)       (680) 
 (Decrease) / Increase in deferred revenue            (1,757)         551 
 Net cash flows provided by operating activities        7,196      20,710 
 
 Investing activities 
 Advances for vessels under construction                (830)           - 
 Dry-docking costs                                          -     (1,503) 
 Interest received                                        331         511 
                                                   ----------  ---------- 
 Net cash flows used in investing activities            (499)       (992) 
 
 Financing activities 
 Repayment of long-term debt                         (10,930)     (7,225) 
 Restricted cash                                      (4,053)       (461) 
 Interest paid                                        (2,676)     (3,079) 
 Dividends paid to equity shareholders                (4,018)     (1,698) 
                                                   ----------  ---------- 
 Net cash flows used in financing activities         (21,677)    (12,463) 
                                                   ----------  ---------- 
 Net (decrease) / increase in cash and 
  cash equivalents                                   (14,980)       7,255 
 Cash and cash equivalents at 1 January                58,993      71,180 
                                                   ----------  ---------- 
 Cash and cash equivalents at 30 June                  44,013      78,435 
                                                   ==========  ========== 
 

[1] EBITDA has been calculated as follows: Operating profit + Depreciation + Depreciation of dry-docking costs

[2] Cash reserves comprise of unencumbered cash + restricted cash

[3] Gearing ratio is defined as Net Debt to total capitalization (debt, net of deferred financing fees less cash and cash equivalents to net debt and stockholders' equity)

[4] Source : Howe Robinson

[5] Gearing ratio is defined as Net Debt to total capitalization (debt, net of deferred financing fees less cash and cash equivalents to net debt and stockholders' equity)

This information is provided by RNS

The company news service from the London Stock Exchange

END

IR EASNNESLFEFF

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