17 Nov 2010 07:00
Goldenport Holdings Inc.
Athens, 17 November 2010
INTERIM MANAGEMENT STATEMENT
Goldenport Holdings Inc. ("Goldenport" or "the Company"), (LSE: GPRT) the international shipping company that owns and operates a fleet of container and dry bulk vessels announces today the update on the trading of its fleet as of 16 November 2010 and the Interim Management Statement covering the period from 30 June 2010.
Operational Fleet Forward Coverage:
The percentage of available days of the fleet already fixed under contracts as of 16 November 2010, assuming the earliest charter expiration and excluding the new-build vessels expected to be delivered in 2011, is as follows:
| 2010(1) (2) | 2011 (1) (2) | 2012 (1) (2) |
Total Fleet | 98% (96%) | 77% (66%) | 38% (25%) |
Containers | 100% (99%) | 99% (89%) | 44% (45%) |
Bulk Carriers | 96% (92%) | 55% (35%) | 32% ( 1%) |
(1) Percentage of available days of the fleet fixed under contract as reported on 30 August 2010, being the date of the previous trading update, is given in brackets
(2) The percentages above include only the current operational fleet and exclude the four new-build vessels for which we expect delivery in 2011
CEO Statement:
Captain Paris Dragnis, Founder and Chief Executive Officer of the Company commented:
"During the period, we continued with the consistent implementation of our strategy, focusing upon prudent growth without sacrificing the health of our balance sheet, while seeking stable cash flows with upside potential through the employment of our fleet under period time charters.
"Within the context of our continued fleet expansion, we are very pleased to have taken delivery of our new-build Supramax bulk carrier vessels 'Milos' and 'Sifnos' which commenced their pre-arranged time charter employment. We look forward to our imminent delivery of our new-build Supramax bulk carrier 'Eleni D' which will also commence its agreed three year time charter immediately following the delivery from the yard. Two out of these three vessels are chartered with a floor rate and profit sharing structure over a three year period allowing us to benefit from any improvement of the dry-bulk market while protecting our downside. These additions to our fleet will significantly expand the revenue, profit and cash flow generation of our Company.
"Our organic growth will continue in the first half of 2011, when we expect the deliveries from the shipyards of our four remaining contracted new-build vessels and the delivery from the seller of the recently acquired container vessel 'Clifton-Bridge'.
"We have secured strong forward period employment for the majority of our extended operational fleet of containers and dry bulk carriers with 98% of the fleet available days for 2010 and 77% for 2011 fixed under time charter employment, assuming earliest charter expiration. This translates into strong and visible cash flows.
"Our Company is in a strong financial condition as of 30 September 2010 with net debt of only US$ 142.5 million and net debt to book capitalisation of 34%, a moderate figure for our industry. Cash balance as of 30 September 2010 was US$ 54.3 million not including the US$10.1 million held as restricted cash which we expect to utilise to finance the remaining portion of the acquisition of the vessel 'Clifton-Bridge'.
"Our strong cash balance and extensive cash flow visibility based on the forward time charter coverage in both segments in which we operate, allows us to be confident in proceeding with our planned growth. Our fully financed new-building program which progresses on track will increase our profile with our major customers creating a solid platform for further growth.
"Our versatile and modern fleet combined with strong ties to major trading and liner companies allows us to be more visible in the market and enhances access to a wider variety of new and accretive investment projects.
"We continue to closely monitor the developments in the container market in order to take advantage of opportunities that arise. We aim to simultaneously expand our fleet and customer base by acquiring appropriate tonnage that will meet the needs of our existing and target customers, while ensuring value creation for our shareholders. Our focus continues to be on the medium size segment of the container market.
"We believe that we are well positioned to further expand our fleet as we support the evolving transportation requirements of our key customers."
Fleet Employment Profile:
Operational fleet | ||||||
Vessel | Type | Capacity | Built | Rate (US$) per day | Earliest | |
Expiration (1) | ||||||
Containers | TEU | |||||
1 | MSC Fortunate (2) | Post Panamax | 5,551 | 1996 | 28,500 | Feb-13 |
2 | MSC Socotra | Post Panamax | 4,953 | 1995 | 12,350 | Apr-13 |
3 | Bosporus Bridge | Sub Panamax | 3,720 | 1993 | 14,750 | Feb-12 |
4 | MSC Finland | Sub Panamax | 3,032 | 1986 | 9,000 | Apr-12 |
5 | MSC Scotland (3) | Sub Panamax | 3,007 | 1992 | 14,500 | Mar-11 |
6,800 | Mar-12 | |||||
6 | Grand Vision | Sub Panamax | 2,986 | 1991 | 9,000 | Nov-11 |
7 | MSC Anafi | Sub Panamax | 2,420 | 1994 | 9,000 | Jan-12 |
8 | MSC Accra | Sub Panamax | 1,889 | 1985 | 14,200 | Jun-12 |
9 | Gitte | Handy | 976 | 1992 | 7,350 | May-12 |
10 | Brilliant | Handy | 976 | 1992 | 6,000 | Jun-12 |
Dry Bulk | DWT | |||||
11 | Vasos | Capesize | 152,065 | 1990 | 23,950 | Feb-11 |
12 | Eleni D (7) | Supramax | 59,000 | 2010 | 23,000 | Dec-13 |
13 | Milos | Supramax | 57,000 | 2010 | 15,650 + 50% profit share of 105% BSI(6) | Oct-13 |
14 | Sifnos (3) | Supramax | 57,000 | 2010 | 18,250 | Jan-11 |
17,700 + 50% profit share of 105% BSI(6) over 18,200 | Jan-14 | |||||
15 | Marie-Paule (4) | Supramax | 53,800 | 2009 | 18,000 | Jan-12 |
16 | Alpine-Trader (4) | Supramax | 53,800 | 2009 | 15,300 | Oct-11 |
17 | Alex D | Supramax | 52,315 | 1989 | 14,200 | Nov-10 |
18 | Limnos | Supramax | 52,266 | 1992 | 14,500 | May-11 |
19 | Lindos | Supramax | 52,266 | 1990 | 10,000 | Nov-10 |
20 | Tilos | Supramax | 52,266 | 1991 | 14,000 | Dec-10 |
21 | Golden-Trader | Handymax | 48,140 | 1994 | 18,600 | Nov-11 |
Vessels under construction | ||||||
Vessel / Yard name | Type | Capacity | Scheduled Delivery | |||
Container | TEU | |||||
22 | Jiangsu Yangzijiang | Sub Panamax | 2,500 | 2011 | ||
Vessel or Yard name | Type | Capacity | Scheduled Delivery | Rate (US$) per day | ||
Dry Bulk | DWT | |||||
23 | Jiangsu Yangzijiang | Post Panamax | 93,000 | 2011 | - | |
24 | COSCO (5) | Supramax | 57,000 | 2011 | 25,000 | |
25 | COSCO | Supramax | 57,000 | 2011 | - | |
(1) Represents earliest day on which the charterer may redeliver the vessel | ||||||
(2) The rate stated is the average rate per day over the duration of the time charter | ||||||
(3) The vessel will continue with the same charterer with the rates as stated in direct continuation | ||||||
(4) Both vessels owned under a 50:50 joint venture with Glencore International AG | ||||||
(5) The charter term is for three years from delivery | ||||||
(6) BSI: Baltic Supramax Index | ||||||
(7) The vessel is expected to be delivered by SPP, by the end of November 2010 | ||||||
(8) The vessel 'Clifton-Bridge' for which an advance has been paid shall be included in the table as soon as it is delivered in April 2011 | ||||||
Third Quarter 2010, Selected Financial and Operating Data:
Balance Sheet Data (in US$ million): | 30 September 2010 (Unaudited) | |
Gross Debt | 206.9 | |
Cash | 54.3 | |
Restricted cash for acquisitions | 10.1 | |
Net Debt | 142.5 | |
Net Debt to book capitalisation | 34% | |
FLEET DATA: | Quarter 3, 2010 | |
Average number of vessels in operation | (1) | 18 |
Number of vessels at end of period: | ||
- Operating | 18 | |
- New Buildings under construction | 7 | |
Ownership days | (1) | 1,656 |
Available days | (1) | 1,649 |
Operating days | (1) | 1,644 |
Fleet utilisation | 99.7% | |
(1): Number of vessels in operation, ownership, available and operating days in the third quarter, exclude i) the container vessel 'Clifton Bridge', that has not been delivered to the company yet, ii) the three new building supramax vessels delivered in the fourth quarter of 2010, and iii) the four new building vessels expected to be delivered in 2011
Third Quarter 2010, Review of Operations:
Fleet utilisation for the third quarter increased to 99.7% as all vessels in the fleet were fully operational.
Since 1 July 2010 the Company has repaid US$ 7.4 million of scheduled loan instalments. In addition within the third quarter the Company has made advance payments to shipyards in an aggregate amount of US$19.9 million for its new building programme; US$ 16.1 million were drawn-down from previously committed bank debt and US$ 3.8 million paid from cash reserves.
On 19 July 2010 the shareholders of the Company approved the Placing and Open Offer for the issuance of 18,496,010 new shares at GBP1.27 per share and on 21 July 2010 the company received GBP22.77 million representing the net proceeds from the offering after deducting underwriters' commission.
As of 30 September 2010 the net debt was US$ 142.5 million (US$ 167.4 million as of 30 June 2010) and net debt to book capitalisation was 34% (41% as of 30 June 2010).
Events after 30 September 2010:
On 8 November 2010 the Company took delivery of the new build geared bulk carrier vessel 'Sifnos' with 57,000 DWT capacity from the COSCO (Zhousan) Shipyard Co Ltd., in China, which commenced its agreed time charter following delivery.
On 4 November the Company agreed to acquire the sub-panamax container vessel 'Clifton Bridge', with nominal intake of 3,720 TEU for an aggregate purchase price of US$ 8.1 million. The vessel will be delivered to Goldenport in April 2011, at which time further details of the charter contract to be entered into will be announced
On 25 October 2010 the Company took delivery of the new build geared bulk carrier vessel 'Milos' with 57,000 DWT capacity from the COSCO (Zhousan) Shipyard Co Ltd., in China, which commenced its agreed time charter following delivery.
- ENDS -
For further information, please contact:
Goldenport Holdings Inc:
Christos Varsos, Chief Financial Officer +30 210 8910500
John Dragnis, Commercial Director +30 210 8910500
Investor Relations Coordinators:
Capital Link:
Annie Evangeli - London +44 203 206 1320
Nicolas Bornozis - New York +1 212 661 7566
E-mail: goldenport@capitallink.com
info@goldenport.biz
Further Information:
Overview of Goldenport
Goldenport is an international shipping company that owns and operates a fleet of twenty-six container and dry bulk vessels that transport cargo worldwide. The fleet consists of twelve container vessels (including one new-build vessel with delivery scheduled for 2011) and fourteen dry bulk carriers (including four new-build vessels with deliveries scheduled for 2010 and 2011). Goldenport is listed on the London Stock Exchange under the ticker GPRT.
Website: www.goldenportholdings.com or www.goldenport.biz