11 May 2010 07:00
Goldenport Holdings Inc.
Athens, 11 May 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 10 May 2010 and the Interim Management Statement covering the quarter to 31 March 2010.
Operational Fleet Forward Coverage:
The percentage of available days of the fleet already fixed under contracts as of 10 May 2010 assuming the earliest charter expiration is as follows:
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| 2010(1) (2) | 2011 (1) (2) | 2012 (1) |
| Total Fleet | 88% (79%) | 63% (59%) | 25% (26%) |
| Containers | 99% (89%) | 89% (88%) | 45% (45%) |
| Bulk Carriers | 72% (64%) | 29% (18%) | 1% (1%) |
(1) Percentage of available days of the fleet fixed under contract as reported on 2 March 2010, being the date of the last trading update, is given in brackets
(2) The percentages above include the current operational fleet and exclude the seven new-build vessels for which we expect delivery in 2010 and 2011, although four out of seven vessels are already chartered.
CEO Statement:
Captain Paris Dragnis, Founder and Chief Executive Officer of the Company commented:
"We continue to closely monitor the developments in both markets in which we operate and take advantage of opportunities as these arise. We have secured period employment for the majority of our fleet including the container vessel 'Gitte' that was previously laid up. Our strong balance sheet and the significant cash flow visibility we have secured enables us to seek and take advantage of market opportunities, as we did recently, with the acquisition of two second hand vessels at attractive prices.
"As of today, our fleet consists of 25 vessels, of which 11 are containers and 14 are dry-bulk carriers. Out of the total, 7 vessels (1 container and 6 bulk-carriers) are new-building orders with expected deliveries between 2010 and 2011, thereby ensuring the continued renewal and expansion of our fleet. For our combined operational fleet of containers and dry bulk carriers we have secured strong forward coverage with 88% of the fleet available days for 2010 and 63% for 2011 fixed under time charter employment, assuming earliest charter expiration and excluding the new building vessels (of which the majority are already chartered). This translates into strong and visible cash flows.
"Our Company is in a strong financial condition given that as of 31 March 2010 our net debt was only US$ 126.6 million and our net debt to book capitalisation was 34.2%, a moderate figure for our industry.
"Our business strategy has been that of prudent growth, and while we remain focused on safeguarding the value we have created for our shareholders, we are also alert to take advantage of opportunities. Our strong forward time charter coverage, our new-building program which progresses on track, our committed debt for fleet acquisitions, our strong balance sheet and the improved market prospects in both markets in which we operate, enable us to feel confident about the future growth prospects of our Company and puts us in a strategic position to take advantage of accretive fleet expansion opportunities as these may occur."
Fleet Employment Profile:
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| Operational fleet |
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| Vessel | Type | Capacity | Rate (US$) per day | Earliest |
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| Expiration (1) |
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| Containers |
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| 1 | MSC Fortunate (2) | Post Panamax | 5,551 | 28,500 | Feb-13 |
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| 2 | MSC Socotra | Post Panamax | 4,953 | 12,350 | Apr-13 |
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| 3 | Bosporus Bridge | Sub Panamax | 3,720 | 14,750 | Feb-12 |
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| 4 | MSC Finland | Sub Panamax | 3,032 | 6,800 | Apr-11 |
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| 5 | MSC Scotland (3) | Sub Panamax | 3,007 | 14,500 | Mar-11 |
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| 6,800 | Mar-12 |
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| 6 | Grand Vision (4) | Sub Panamax | 2,986 | 6,500 | Nov-10 |
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| 7 | MSC Anafi | Sub Panamax | 2,420 | 9,000 | Jan-12 |
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| 8 | MSC Accra | Sub Panamax | 1,889 | 14,200 | Jun-12 |
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| 9 | Gitte (4) | Handy | 976 | 7,350 | May-12 |
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| 10 | Brilliant | Handy | 976 | 6,000 | Jun-12 |
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| Dry Bulk |
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| 11 | Vasos (4) | Capesize | 152,065 | 23,950 | Feb-11 |
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| 12 | Marie-Paule (5) | Supramax | 53,800 | 18,000 | Jan-12 |
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| 13 | Alpine-Trader (5) | Supramax | 53,800 | 15,300 | Oct-11 |
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| 14 | Alex D | Supramax | 52,315 | 28,500 | Jun-10 |
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| 15 | Limnos (4) | Supramax | 52,266 | 17,250 | May-10 |
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| 16 | Lindos | Supramax | 52,266 | 17,500 | Jul-10 |
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| 17 | Tilos | Supramax | 52,266 | 20,500 | Aug-10 |
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| 18 | Golden-Trader (6) | Handymax | 48,140 | 18,600 | Nov-11 |
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| Vessels under construction |
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| Vessel / Yard name | Type | Capacity | Scheduled Delivery |
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| Container |
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| 19 | Jiangsu Yangzijiang | Sub Panamax | 2,500 | 2011 |
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| Vessel or Yard name | Type | Capacity | Scheduled Delivery | Rate (US$) per day | |
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| Dry Bulk |
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| 20 | Jiangsu Yangzijiang | Post Panamax | 93,000 | 2011 |
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| 21 | SPP (7)(9) | Supramax | 59,000 | 2010 |
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| 22 | COSCO (7) | Supramax | 57,000 | 2010 | 17,650+50% profit share at BSI(8) + 5% | |
| 23 | COSCO | Supramax | 57,000 | 2010 | - | |
| 24 | COSCO (7) | Supramax | 57,000 | 2011 | 25,000 | |
| 25 | COSCO (7) | Supramax | 57,000 | 2011 | 17,700+50% profit share at BSI(8) + 5% over 18,200 | |
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| (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) The vessels will perform scheduled dry-docking within the second quarter | ||||||
| (5) Both vessels owned under a 50:50 joint venture with Glencore International AG | ||||||
| (6) Previous name was 'Arctic-Trader' | ||||||
| (7) The charter term is for three years from delivery | ||||||
| (8) BSI: Baltic Supramax Index | ||||||
| (9) The daily rate of the vessel will be announced on a future trading update | ||||||
First Quarter 2010, Selected Financial and Operating Data:
| Balance Sheet Data (in US$ million): |
| 31 March 2010 (Unaudited) |
| Gross Debt (net of debt kept as restricted cash) |
| 149.2 |
| Cash |
| 22.6 |
| Net Debt |
| 126.6 |
| Net Debt to book capitalization |
| 34.2% |
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| FLEET DATA: |
| Quarter 1, 2010 |
| Average number of vessels in operation | (1) | 16.7 |
| Number of vessels at end of period: |
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| - Operating |
| 15 |
| - Non-Operating |
| 1 |
| - New Buildings under construction |
| 7 |
| Ownership days | (1) (2) | 1,502 |
| Available days | (1) (2) | 1,485 |
| Operating days | (1) (2) | 1,361 |
| Fleet utilization |
| 91.6% |
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(1): Number of vessels in operation, ownership, available and operating days in the first quarter, include the container vessel 'MSC Mekong', which was sold for scrap in February 2010.
(2): Ownership, available and operating days exclude the vessels 'Golden Trader' and 'Grand Vision' that were acquired during the second quarter 2010 and the 7 new building vessels that will be delivered in 2010 and 2011.
First Quarter 2010, Review of Operations:
Fleet utilisation of 91.6% for the first quarter of 2010 would have been higher, but the container vessel 'MSC Anafi' was on lay-up until 30 January 2010 and 'Gitte' was on lay-up for the full quarter, thus minimising operating expenses. The vessel 'MSC Anafi' commenced operations on 30 January 2010 and the vessel 'Gitte' was reactivated in May 2010, so the next quarters are expected to have increased utilisation.
During the first quarter of 2010 the Company has paid US$ 4.8 million from cash reserves in relation to the second instalment for the Supramax vessel on order to the SPP yard in Korea and has drawn-down US$ 6.4 million of previously committed bank financing in order to finance the construction of one of the COSCO Supramaxes. Also during the period the Company has repaid US$ 5.8 million of scheduled loan instalments.
On 8 January 2010 the Company received from Qingshan Shipyard the US$ 9.4 million representing the refund of the initial deposit following the cancellation agreement for both vessels. US$ 8.5 million were used to repay in full the outstanding debt on the vessels.
During the period the Company has not utilised the loan of US$ 15.1 million drawn in December 2009 for the acquisition of vessels which remained available for such purposes.
As of 31 March 2010 the net debt was US$ 126.6 million (US$ 132.5 million as of 31 December 2009) and net debt to book capitalisation was 34.2% (36.0% as of 31 December 2009).
Profitable Vessel Disposal:
On 12 February 2010, the Company agreed the sale of the 962 TEU, 1978-built vessel 'MSC Mekong', to an unaffiliated third party for demolition. The sale was concluded at a gross consideration of US$ 2.0 million in cash. The vessel was debt-free so the sales proceeds were retained in the cash reserves.
Continued Fleet Renewal and Expansion:
In the context of its continued fleet renewal and expansion program, the Company has announced the following transactions:
Exchange of a Container for a Dry Bulk Contract: On 12 April 2010, the Company announced it had agreed with Jiangsu Yangzijiang Shipbuilding Co. Ltd of China, to exchange one of the two vessels on order with the yard, from a geared container vessel with 2,500 TEU nominal capacity to a 93,000 DWT post-panamax bulk carrier, at no additional cost. Pursuant to this agreement the delivery date for the new-building bulk carrier is scheduled for the second quarter of 2011. The above exchange was agreed at no additional cost to the Company and the already secured bank financing remains in place for both vessels on order to the yard.
Acquisition of a Container Vessel: On 19 April 2010, the Company announced it had agreed to acquire the sub-panamax container vessel 'Grand Vision', with 44,013 MT deadweight and nominal intake of 2,986 TEU. The vessel was first delivered in 1991 to Daewoo Shipbuilding Co. Ltd in South Korea and will be purchased from the unaffiliated third party, Crom Maritime Inc of Liberia, for an aggregate purchase price of US$ 6.75 million. The acquisition initially is to be financed by cash reserves, but the Company is in advanced negotiations to secure finance of at least half of the vessel's value. The vessel is expected to be delivered to the Company in May 2010, at which time it will commence operations.
Acquisition of a Handymax Bulk Carrier Vessel: On 27, April 2010, the Company announced it has agreed to acquire the geared Handymax bulk carrier vessel 'Arctic-Trader (renamed 'Golden Tarder'), with 48,170 MT deadweight. The vessel was first delivered in 1994 from Brodosplit Shipyard, in Split, Croatia and will be purchased from an unaffiliated third party, 'NB Three Shipping Limited S.A.', of Panama, for an aggregate purchase price of US$ 17.25 million. The Company will finance the acquisition by drawing-down in full the existing committed credit line of US$ 20 million. The vessel is expected to be delivered to the Company in May 2010, at which time it will commence operations. Upon delivery the vessel will be immediately employed under a new time charter already arranged at the daily rate of US$ 18,600 for a minimum period of 18 months.
- END -
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-five container and dry bulk vessels that transport cargo worldwide. The fleet consists of eleven container vessels (including one new-build vessel with delivery scheduled for 2011) and fourteen dry bulk carriers (including six 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