GPRT.L Regulatory News (GPRT)

11 Sep 2007 07:00

Goldenport Holdings Inc11 September 2007 Goldenport Holdings Inc. Athens, 11th September 2007 Interim results for the six months ended 30 June 2007 Goldenport Holdings Inc. ("Goldenport" or "the Company"), (LSE: GPRT) theinternational shipping company that owns and operates a fleet of dry bulk andcontainer vessels, today announces interim results for the six months ended June30, 2007. Financial Highlights: • Revenue of US$ 57.5m, +44.5% increase (2006: US$ 39.8m)• EBITDA of US$ 36.4m, +44.6% increase (2006: US$ 25.1m)• EBIT of US$ 31.4m, +57.5% increase (2006: US$ 20.0m)• Net income of US$ 32.3m, +48.8% increase (2006: US$ 21.7m)• Earnings per Share basic and diluted of US$ 0.46 calculated on 69,885,106 shares (2006: US$ 0.39 calculated on 55,059,668 shares)• Interim dividend of 7.0 pence per share or £ 4.9m in total announced representing +25% increase in the interim payout (2006: 5.6 pence per share or £ 3.9m in total)• The 1977 built vessel 'Vana' was sold in May, realising a profit of US$ 3.7m Operational Highlights: • In the first half of 2007 we operated an average of 19.2 vessels earning a daily Time Charter Equivalent (TCE) rate of $ 15,618, (2006: 17 vessels earning a daily TCE rate of $ 12,596)• The container vessels 'MSC Scotland' and 'Vasos' operated for the full six months of 2007 and the container vessel 'MSC Finland' contributed in part• On June 30, 2007 our fleet included 22 vessels in total comprised of 11 container vessels and 11 bulk carriers, compared to 19 vessels on June 30, 2006• 99% of our fleet available days for 2007, 78% for 2008 and 53% for 2009 are already secured under fixed employment• The reconstruction of the fire damaged container vessel 'Fortune' is proceeding in accordance to the expected time scale and budget and is expected to contribute to the 2008 profitability Chartering strategy: • Our proactive chartering strategy has enabled us to take advantage of the continued market strength especially in the dry bulk sector, enhance our profitability, create the platform for sustainable performance in 2007 and beyond and pursue a prudent fleet expansion strategy• In the dry bulk segment of our fleet, as we had avoided locking in the employment of our vessels for longer periods and at lower rates in 2006, we were able to benefit from the market turnaround in the first half of 2007, operating our vessels mainly under short to medium term charters to maximise our profitability. In March 2007, we announced an agreement to acquire two new build bulk carriers under a Joint Venture with Glencore International AG, with delivery in 2008• In the container segment of our fleet, with most of our vessels fixed for the longer term, we were able to pursue a prudent fleet expansion strategy Recent Fleet Developments: • Five vessels have been acquired so far in 2007 of which two were bulk carriers and three containers. The three sub-panamax container vessels will all contribute to earnings in the second half of the year;• The proposed acquisitions which the Company announces further in this press release will further enhance the scale and mix of our fleet. CEO Statement: Commenting on these results, Captain Paris Dragnis, Founder and Chief Executive Officer of the Company stated: "The recovery in the dry-bulk market in 2007, combined with our long-standingand extensive relationships with top tier charter counterparties and our wellpositioned and enlarged fleet, enabled us to conclude bulk-carrier charters at rates significantly higher than those prevailing during the same period of 2006thereby significantly enhancing our revenue and profitability. Furthermore, thedeployment of the majority of our container fleet under long term charters translated into stable and predictable cash flows enabling us to expand ourcontainer fleet with the acquisition of three sub panamax container vesselsscheduled for delivery in the second half of this year. The interim dividend announced is 25% higher compared to that of 2006. Itreflects our strong financial results for the period as well as confidence insustainable performance for the rest of 2007 and beyond. As of today 99% of ourfleet available days for 2007, 78% for 2008 and 53% for 2009 are alreadysecured under fixed employment thereby enhancing the stability andpredictability of our cash flows, while also enabling us to continue benefitingfrom the continued strength in both the dry bulk and container markets. Since April 2006, when we became a public company, our fleet has grown to 25vessels with the addition of six containers and three bulk carriers (and onebulk carrier sold). The container vessel acquisitions tripled our TEU capacitycompared to the IPO fleet. Of the additions so far, six vessels are fullyoperational and the remaining three are expected to contribute to profitabilityfrom 2008. Consistent with the investment principles outlined at the time of the IPO, theCompany intends to acquire four new build 57,000 DWT bulk carriers from Cosco(Zhoushan) Shipyard with delivery in 2009 and two new build 2,500 TEU geared container vessels from Jiangsu Yangzijang Shipbuilding Co, with deliveries in2010 and 2011. The total value of these acquisitions will be in excess of US$245m and the Company will seek shareholders' approval in order to proceed with their conclusion. Assuming the current and the proposed acquisitions take place our fleet wouldreach thirty-one vessels (after the sale of 'Vana'), which would represent a82% increase in the number of vessels compared to the IPO fleet, comprised of fifteen bulk carriers and sixteen containers. The additions to the bulk-carrierfleet would represent a 63% increase in terms of DWT and the additions to thecontainer segment of our fleet would represent an increase of 228% in terms of TEU nominal capacity. Out of the bulk carriers, ten vessels would be of theHandymax / Supramax size, whereas the container fleet would comprise mainly tensub-panamax vessels. The new acquisitions will enrich the mix and size of our fleet producing potentially higher returns compared to the fleet at IPO. The strong free cash flow generated from the business since flotation hasenabled us to expand further than the net IPO proceeds allowed. Theimplementation of the current and proposed acquisitions of the Company will befunded through cash reserves and debt financing. We remain confident on the outlook of the dry-bulk and container markets for2007. Our fleet is favourably positioned to take advantage of the booming drybulk and container markets and to strongly support our financial performance in 2007 and well beyond, creating a platform of growth until the majority of thenew build vessels become operational." Enquiries: Goldenport:Christos Varsos, Chief Financial Officer: Today +30 694 429 4839 Thereafter +30 210 8910 500John Dragnis, Commercial Director Today +30 694 668 8180 Thereafter +30 210 8910 500Investment Relations Co-ordinators: Global: Capital linkNicolas Bornozis Today +1 917 209 1313 Thereafter +1 212 661 7566UK: Smithfield:John Kiely / Will Swan: +44 (0)20 7360 4900 e-mail address: goldenport@capitallink.com Operational Review: 30 June 2007 Market Conditions: The dry bulk chartering market during the first six months of 2007 strengthenedon average by 113% compared to the same period in 2006 (2007: 5,310 2006: 2,492BDI units, source: Baltic Dry Index). The Company was well positioned to take full advantage of the rising charter market by keeping, in late 2006, most ofthe vessels that were coming out of long-term contracts in short-term charteremployment. During the first half of 2007, the Company utilised a mixture of short to mediumterm charters benefiting from the booming conditions and achieving higher ratesthan previously. Examples of this strategy were the vessels 'Vasos' and 'Samos'that achieved US$ 50,000 and US$ 72,000 per day for 100 and 65 daysrespectively. After 30th June when the market reached new record levels theCompany then started to employ its vessels in longer term time charters at increasingly attractive rates. Rewarding examples of this strategy were thevessels 'Ios' and 'Athos' that were chartered until 2009 and 2010 respectivelyat very attractive rates ('Ios' at US$ 26,000 per day compared to US$ 12,500 previously and 'Athos' at US$ 19,300 per day compared to US$ 16,750 previously). The container chartering market during the first six months of 2007 weakened onaverage by 9% compared to the same period in 2006 (source: Howe RobinsonContainers Index). However, most of the fleet was already fixed so the weakeningin the rates environment did not affect the Company. During the first half alsothe vessel 'MSC Finland' was delivered and was employed on a three-yearcharter, contributing partially to the profitability so far. The vessel will contribute for the full period of the second half of this year. Current Market Outlook: The dry bulk market is presently experiencing a further strengthening comparedto the first half of 2007. As of the first week of September 2007, the dry bulkcharter rates are110% higher compared to 2006 full year average (2007: 5,753 versus full year 2006: 2,732 units) and 30% higher compared to first half 2007average (July-September 2007: 6,932 BDI units, average first half 2007 5,310BDI units, source: Baltic Dry Index). The dry bulk market is expected to remain strong for the rest of the year, as well as for 2008 and 2009. Goldenport is well placed to benefit from the current booming conditions, as theCompany employs a portion of the fleet (mostly Handymax vessels) under shorter-term high-rate charters. Where appropriate the Company will enter into medium-term contracts at favourable rates. Such a strategy was illustrated through therecent fixture of the vessel 'Gianni D' which is employed until April 2009 atUS$ 51,500 per day (previously US$ 26,000 per day). Another example is thevessel 'Samos' which has been employed until December 2008 at US$ 32,000 per day(previously at US$ 22,750 per day). The container market has already shown signs of strong recovery. Goldenport hastaken advantage of this recovery since 30th June 2007, by re-chartering thecurrent fleet at predominately longer periods with more attractive rates, for example the vessel 'MSC Socotra' is re-chartered from March 2008 until 2013 atUS$ 14,350 per day (compared to the existing rate of US$ 8,000 per day).Furthermore the Company strengthened its position in the sub-panamax containers segment by acquiring three vessels since 30th June 2007 and securing profitablecharters for them. Proposed acquisition of new vessels: Historically the Company has implemented its expansion strategy through theacquisition of second-hand vessels. However, conditions in the dry bulk marketsince the beginning of 2007 has led to a rapid increase in the price of second-hand vessels, with prices reaching new record levels in mid 2007. Accordinglythe Company has also actively pursued opportunities to acquire new buildvessels (for example, as we announced on 14th March 2007, two new build Supramaxes in joint venture with Glencore). At present, the Company proposes toacquire from Jiangsu Yangzijang Shipbuilding Co two geared sub-panamaxcontainer vessels with delivery in 2010 and 2011. This acquisition will be subject to shareholders' approval. The Company also intends to acquire four new build 57,000 DWT bulk carriers fromCosco (Zhoushan) Shipyard with delivery in 2009. This acquisition would also besubject to shareholders' approval. Two of these vessels have already beencontracted, subject to acquisition, at attractive rates for long periods, underfixed floor rates plus profit sharing agreements. Total consideration for the proposed six vessels is estimated to be US$ 245million. The proposed acquisition is expected to be financed by cash reservesand bank funding. The Company believes that the proposed new build acquisitions will furtherenhance its fleet profile and will increase its exposure to its preferredmarket segments. Further details will be announced in due course. Interim dividend: The Company has today declared an interim dividend of 7.0 pence per share(amounting to an interim payout of £ 4.9m in total), representing an increaseof 25% compared to the 2006 interim dividend of 5.6 pence per share, (interimpayout of £ 3.9 million in total). The dividend will be payable on October12th, 2007 to shareholders of record as of 21 September 2007. Summary of Selected Financial and Operating Data: 6 months endedINCOME STATEMENT DATA (in US$ thousand 30 June 2007 30 June 2006except share data): _____________ _____________Revenue 57,501 39,810EBITDA 36,358 25,139EBIT 31,428 19,956Net Income 32,277 21,732Earnings per share (basic and diluted) 0.46 0.39Weighted average number of shares 69,885,106 55,059,668 FLEET DATA:Average number of vessels 19.2 17Number of vessels at end of period 22 19Number of vessels in operation at end of period 19 (1) 18Ownership days 3,481 (2) 3,082 (3)Available days 3,399 (2) 2,967 (3)Operating days 3,276 (2) 2,882 (3)Fleet utilisation 96.4% 97.1% AVERAGE DAILY RESULTS (in US$):Time Charter Equivalent (TCE) rate 15,618 12,596Average daily vessel operating expenses 3,997 (2) 3,305 (3) Average daily vessel operating expenses Full Year 2006 3,791 (3) (1): Number of vessels in operation at the end of period excludes the vessel'Vana' that was sold in May 2007 (2): Ownership days, available days, operating days and average daily vessel operating expenses in 2007 exclude the vessel 'Fortune' which was not operating within the period and the two new-build vessels acquired under joint venture which will be delivered in 2008 which did not operate within the period. (3) Ownership days, available days, operating days and average daily vessel operating expenses in 2006 exclude the vessel 'Fortune' which was not operating within the period. See Appendices, for Notes on the Summary of Selected Financial and Operating Data and for full Fleet Employment profile. Time and Voyage Charter Revenues: Revenues increased by US$ 17.7 million or44.5% to US$ 57.5 million for the six months ended 30 June 2007 (2006: US$ 39.8million). The main reasons for this increase were: (i) the difference in available days between the two periods (2007: 3,399 days; 2006: 2,967 days), dueto the additions of the vessels 'MSC Scotland' and 'Vasos' that becameoperational after 30th June 2006 and were fully operational in the first half of2007 and the addition of the vessel 'MSC Finland' that contributed partially inthe period, whereas the vessel 'Vana' was sold in May (ii) a strengthening inthe market rates which allowed existing vessels to be fixed at higher rates compared to the same period last year. Voyage expenses: The voyage expenses increased by US$ 2.0 million or 83% to US$4.4 million for the six months ended 30 June 2007 (2006: US$ 2.4 million)mainly due to: (i) increased revenue figure to which commission rates applied(ii) the vessel 'Samos' at the end of the period was on a voyage charter andnot on a time charter as normally, which means that the Company had to coverbunkering expenses and also port and canal fees. Vessel operating expenses: Vessel operating expenses increased by US$ 3.7million or 36% to US$ 13.9 million for the six months ended 30 June 2007 (2006:US$ 10.2 million). This increase is attributable to the increase of the fleet interms of numbers of vessels but also to the change of mix as the vesselsacquired were of a larger size compared to the existing vessels. On a per daybasis operating expenses increased by 21% to US$ 3,997 per day, the main reasonsbeing: (i) a stepped increase in crew wages of the Ukrainian crew, that becameeffective in early 2006, but is in full effect in 2007; (ii) the increase inthe cost of lubricants mainly due to the movement of oil prices; (iii) theincrease in insurance premiums for the newly acquired vessels, due to highervessel prices. Most of these effects also were highlighted in the full year2006 operating expenses. However, average daily operating expenses for the firsthalf of 2007, increased only by 5.4% compared to the average daily expenses asof 31st December 2006. General and administrative expenses: General and administrative expensesincreased by US$ 0.6 million to US$ 1.0 million, reflecting incremental listingrelated expenses that were paid for full period in 2007 compared to only one quarter in the comparable period. Depreciation: The vessels' depreciation charge increased by 127% to US$ 5.9million for the six months ended 30 June 2007 (2006: US$ 2.6 million) due tothe depreciation of the vessels 'MSC Scotland', 'Vasos' that were acquired after30th June 2006 and the vessel 'MSC Finland' that was acquired in March 2007. Thedepreciation of dry-docking costs was in line with the comparative period. Gain from vessel disposal: The Company realised profit of US$ 3.7 million fromthe sale of vessel 'Vana'. The vessel was fully depreciated to scrap value andthe net carrying amount in the financial statements as of December 31st, 2006 was US$ 1.6 million. Financing costs: Interest expense increased by US$ 0.2 million or 11% to US$ 2.1million for the six months ended 30 June 2007 (2006: US$ 1.9 million), mainlydue to the increased principle amount from debt that financed the vesselacquisitions that took place after 30th June 2006. Interest income increasedsignificantly by US$ 1.1 million to US$ 2.4 million due to time deposits athigher rates on the cash generated from operations and the remaining proceeds ofthe initial public offering. Conference Call and Webcast: Today, Tuesday, September 11, 2007, at 3:30 p.m. London, 10:30 a.m. EDT, 5:30p.m. Athens time the company's management will host a conference call to discussthe results. Conference Call details:Participants should dial into the call 10 minutes prior to the scheduled timeusing the following numbers: 0800-953-0329 (from the UK) 1-866-819-7111 (fromthe US), or +44 (0)1452-542-301 (all other callers). Please quote "GoldenportHoldings". In case of any problem with the above numbers, please dial 0800-694-1503 (fromthe UK) 1-866-223-0615 (from the US), or +44 (0)1452-586-513 (all othercallers). Quote "Goldenport Holdings". A telephonic replay of the conference call will be available until September 18,2007 by dialing 0800-953-1533 (from the UK), 1-866-247-4222 (from the US), or+44 1452-550-000 (all other callers). Access Code: 6906584# Slides and audio webcast:There will also be a live and then archived webcast of the conference call,accessible through the Goldenport Holdings website (www.goldenportholdings.com).Participants to the live webcast should register on the website approximately 10minutes prior to the start of the webcast. Forward-Looking StatementMatters discussed in this release may constitute forward-looking statements.Forward-looking statements reflect the current views of Goldenport Holdings Inc.("the Company") with respect to future events and financial performance and mayinclude statements concerning plans, objectives, goals, strategies, futureevents or performance, and underlying assumptions and other statements, whichare other than statements of historical facts. The forward-looking statements in this release are based upon variousassumptions, many of which are based, in turn, upon further assumptions,including without limitation, management's examination of historical operatingtrends, data contained in our records and other data available from thirdparties. Although the Company believes that these assumptions were reasonablewhen made, because these assumptions are inherently subject to significantuncertainties and contingencies which are difficult or impossible to predict andare beyond our control, the Company cannot assure you that it will achieve oraccomplish these expectations, beliefs or projections. Important factors that, in our view, could cause actual results to differmaterially from those discussed in the forward-looking statements include thestrength of world economies and currencies, general market conditions, includingchanges in charter hire rates and vessel values, changes in demand that mayaffect attitudes of time charterers to scheduled and unscheduled dry-docking,changes in the Company's operating expenses, including bunker prices,dry-docking and insurance costs, or actions taken by regulatory authorities,potential liability from pending or future litigation, domestic andinternational political conditions, potential disruption of shipping routes dueto accidents and political events or acts by terrorists. The Company does notassume, and expressly disclaims, any obligation to update these forward-lookingstatements. This press release is not an offer of securities for sale in the United States.The Company's securities have not been registered under the U.S.Securities Actof 1933, as amended, and may not be offered or sold in the United States or to aU.S. person absent registration pursuant to, or an applicable exemption from,the registration requirements under U.S. securities laws. GOLDENPORT HOLDINGS INC. Interim Condensed ConsolidatedFinancial Statements 30 June 2007 All amounts in US$ thousand unless otherwise stated INDEPENDENT REVIEW REPORT To the Shareholders of Goldenport Holdings Inc. Introduction We have reviewed the accompanying interim consolidated balance sheet ofGoldenport Holdings Inc. and its subsidiaries ("the Group") as at 30 June 2007,and the related interim consolidated income statement, statement of changes inequity and cash flows for the six month period then ended and explanatory notes.Management is responsible for the preparation and presentation of these interimcondensed consolidated financial statements in accordance with InternationalFinancial Reporting Standards as adopted by the European Union and applied tointerim financial reporting ("IAS 34"). Our responsibility is to express aconclusion on these interim condensed consolidated financial statements based onour review. Scope of review We conducted our review in accordance with the International Standard on ReviewEngagements 2410, "Review of Interim Financial Information Performed by theIndependent Auditor of the Entity". A review of interim financial informationconsists of making inquiries, primarily of persons responsible for financial andaccounting matters, and applying analytical and other review procedures. Areview is substantially less in scope than an audit conducted in accordance withInternational Standards on Auditing and consequently does not enable us toobtain assurance that we would become aware of all significant matters thatmight be identified in an audit. Accordingly, we do not express an auditopinion. Conclusion Based on our review, nothing has come to our attention that causes us to believethat the accompanying interim condensed consolidated financial statements arenot prepared, in all material respects, in accordance with IAS 34. Ernst & Young (Hellas) Certified Auditors - Accountants S.A.10th September 2007 INTERIM CONSOLIDATED INCOME STATEMENTFOR THE SIX MONTHS ENDED 30 JUNE 2007 6 months 6 months Ended Ended 30 June 30 June 2007 2006 Notes U.S.$'000 U.S.$'000 _____ _________ _________ Unaudited Unaudited Revenue 57,501 39,810 Expenses: Voyage expenses 4 (4,417) (2,438)Vessel operating expenses 4 (13,915) (10,185)Management fees - related party 15 (1,804) (1,607)Depreciation 6 (5,873) (2,597)Depreciation of dry-docking costs 6 (2,749) (2,586)Gain from vessel disposal 6 3,692 -General and administration expenses (1,007) (441) _________ _________Operating profit 31,428 19,956 _________ _________ Financial expense (2,133) (1,920)Financial income 2,375 1,322Foreign currency gain, net 607 2,374 _________ _________Profit for the period attributable to Goldenport Holdings Inc shareholders 32,277 21,732 _________ _________ Earnings per share (U.S.$): - Basic EPS for the period 12 0.46 0.39- Diluted EPS for the period 12 0.46 0.39 Weighted average number of shares 12 69,885,106 55,059,668 The accompanying notes form an integral part of the financial statements. INTERIM CONSOLIDATED BALANCE SHEETAT 30 JUNE 2007 30 June 31 December 2007 2006 Notes U.S.$'000 U.S.$'000 _____ _________ _________ Unaudited Audited ASSETSNon-current assetsVessels at cost, net 6 140,915 131,720Advances for vessels acquisition / construction 7,8 17,713 1,700Vessels under reconstruction 9 25,408 23,068Other non-current assets 160 185 _________ _________ 184,196 156,673 _________ _________Current assetsInventories 662 -Trade receivables 14 3,409 1,275Insurance claims 1,814 1,305Due from related parties 15 2,356 811Prepaid expenses and other assets 1,056 887Restricted Cash 511 1,166Cash and cash equivalents 3 71,068 81,372 _________ _________ 80,876 86,816 _________ _________ TOTAL ASSETS 265,072 243,489 ========= ========= SHAREHOLDERS' EQUITY AND LIABILITIESEquity attributable to equity holdersof the parentIssued share capital 11 699 699Share premium 11 106,991 106,991Retained earnings 57,674 41,838 _________ _________TOTAL EQUITY 165,364 149,528 _________ _________ Non-current liabilitiesLong-term debt 13 63,719 60,847 _________ _________ 63,719 60,847 _________ _________Current liabilitiesTrade payables 7,389 6,941Current portion of long-term debt 13 22,641 19,780Accrued liabilities and other payables 3,822 3,754Deferred revenue 2,137 2,639 _________ _________ 35,989 33,114 _________ _________ TOTAL LIABILITIES 99,708 93,961 _________ _________TOTAL EQUITY AND LIABILITIES 265,072 243,489 ========= ========= The accompanying notes form an integral part of the financial statements INTERIM CONSOLIDATED STATEMENT OF CHANGES IN EQUITYFOR THE SIX MONTHS ENDED 30 JUNE 2007 Issued Number Par share Share Retained Total of value capital premium earnings Equity shares U.S.$ U.S.$'000 U.S.$'000 U.S.$'000 U.S.$'000 __________ _____ _________ _________ _________ _________As of 31 December 2005 41,800,000 0.01 418 - 4,492 4,910 __________ _____ _________ _________ _________ _________Profit for the period - - - - 21,732 21,732Pooling of interestadjustment - - - - (418) (418)Proceeds from initial publicoffering, net 28,085,106 0.01 281 106,991 - 107,272 __________ _____ _________ _________ _________ _________As of 30 June 2006 (unaudited) 69,885,106 0.01 699 106,991 25,806 133,496 __________ _____ _________ _________ _________ _________ Number Par share Share Retained Total of value capital premium earnings Equity shares U.S.$ U.S.$'000 U.S.$'000 U.S.$'000 U.S.$'000 __________ _____ _________ _________ _________ _________ As of 31 December 2006 69,885,106 0.01 699 106,991 41,838 149,528 __________ _____ _________ _________ _________ _________ Profit for the period - - - - 32,277 32,277Dividends declared,approved andpaid to equityshareholders (16,441) (16,441) __________ _____ _________ _________ _________ _________As of 30 June 2007 (unaudited) 69,885,106 0.01 699 106,991 57,674 165,364 __________ _____ _________ _________ _________ _________ The accompanying notes form an integral part of the financial statements INTERIM CONSOLIDATED CASH FLOW STATEMENTFOR THE SIX MONTHS ENDED 30 JUNE 2007 6 months 6 months Ended Ended 30 June 30 June 2007 2006 Notes U.S.$'000 U.S.$'000 _____ _________ _________ Unaudited Unaudited Operating activities Profit for the period 32,277 21,732Adjustments for:Depreciation 6 5,873 2,597Depreciation of dry-docking costs 2,749 2,586(Gain) from vessels disposal (3,692) -Finance expense 2,133 1,920Finance income (2,375) (1,322)Foreign currency gain (607) (2,374) _________ _________Operating profit before working capital changes 36,358 25,139 Inventories (662) 324Trade receivables, prepaid expenses & other assets (2,279) (1,076)Insurance claims (509) (901)Trade payables, accrued liabilities & other payables 549 (698)Deferred revenue (502) 195 _________ _________Net cash flows from operating activities before movement in amounts due fromrelated parties 32,955 22,983Due from related parties (1,545) 6,155 _________ _________Net cash flows provided by / (used in) operating activities 31,410 29,138 _________ _________Investing activitiesAcquisition of vessels (15,454) (29,378)Disposal of vessels net of commissions 5,280 -Advances for vessel acquisitions 7 (4,841) -Advances for vessel under reconstruction (1,717) (13,322)Advances for vessel under construction 8 (12,872)Dry-docking costs (2,250) (1,794)Interest received 2,350 1,256 _________ _________Net cash flows used in investing activities (29,504) (43,238) Financing activitiesProceeds from issue of long - term debt 15,949 17,380Repayment of long-term debt (10,300) (36,530)Share Capital Increase - 281Proceeds from initial public offering - 115,184Issuance costs - (8,193)Restricted cash 655 584Interest paid (2,688) (1,884)Dividends paid 5 (16,441) (6,500) _________ _________Net cash flows (used in) / provided by financing activities (12,825) 80,322 _________ _________Net (decrease) / increase in cash and cash equivalents (10,919) 66,222Exchange gains on cash and cash equivalents 615 2,499Cash and cash equivalents at beginning of period 81,372 - _________ _________Cash and cash equivalents at end of period 3 71,068 68,721 _________ _________ 1. Formation and General Information Goldenport Holdings Inc. (Goldenport or the Company) was incorporated under thelaws of Marshall Islands, as a limited liability company, on 21 March 2005. On 5April 2006, Goldenport Holdings Inc. was admitted in the Official List andstarted trading on the London Stock Exchange at a price of GBP2.35 per share. On11 April 2006 the over allotment option was exercised at a price of GBP 2.35 pershare. In total, the Company received GBP66 million (or U.S.$115,500) in orderto partially repay debt and to fund further fleet expansion. Goldenport as of 30 June 2007, is the Holding company of twenty (20)intermediate holding companies, each in turn owning a vessel - owning company.Goldenport is also the holding Company of two more intermediate holdingcompanies, owning Mona Marine S.A. and Ginger Marine Company, which will be thevessel-owning companies of M/V Anafi and M/V MSC Accra upon delivery of thevessels. Finally, During the six months period ended 30 June 2007, Goldenportactivated a new subsidiary (Goldenport Marine Services; established on 18 April2005), which in the future will provide the Company and its affiliates a widerange of shipping services, such as technical support and maintenance, insuranceconsulting, chartering, financial and accounting services, in exchange for adaily fixed fee, per vessel. Goldenport and its subsidiaries will be hereinafter referred to as the 'Group'. The interim condensed consolidated financial statements comprising the financialstatements of the Company and its wholly owned subsidiaries (see (a) below) andthe proportionally consolidated financial statements of the joint venture (see(b) below) were authorised for issue in accordance with a resolution of theBoard of Directors on 10 September 2007. a) The wholly owned subsidiaries of the Company are: Intermediate Vessel Country of Name of Year of Type ofholding owning Incorporation Vessel acquisition- Vesselcompany company of owned by of vessel vessel-owning Subsidiary company_____________ ________ _____________ __________ ____________ _________Marta Trading Superb Panama Glory D 1997 ContainerCo. Maritime S.A.Daphne Marine Dancing Malta Tuas 1998 ContainerCorp. Waves Co. Express Ltd.Portia Borealis Malta Msc 1999 ContainerNavigation Co. Shipping Co. Himalaya Ltd.Aloe Karana Ocean Malta Alex D 1999 BulkNavigation Shipping Co. CarrierInc. Ltd.Dumont Black Rose Malta Beauty 2001 ContainerInternational ShippingInc. Ltd.Royal Bay Opal Malta Achim 2001 ContainerMarine Ltd Maritime LimitedAudrey Marine Wild Orchid Malta MSC 2001 ContainerCorp. Shipping Emirates Ltd.Sicuro Hampton Liberia Msc Socotra 2002 ContainerShipmanagement Trading S.A.SAPlatinum Coral Sky Malta Gianni D 2002 BulkShipholding Marine Ltd. CarrierS.A.Nemesis Samos Malta Samos 2002 BulkMaritime Inc. Maritime Carrier Ltd.Meredith Guilford Panama Ios 2002 BulkTrading Marine S.A. CarrierCorporationRawlins Fairland Panama Athos 2002 BulkTrading Ltd Trading S.A CarrierBlaze Nilwood Panama Howrah 2003 ContainerNavigation Comp. Inc. BridgeCorp._____________ ________ _____________ __________ ____________ _________ Carrier Black Malta Lindos 2003 BulkMaritime Co. Diamond Carrier Shipping LtdMedina Trading Carina Malta Tilos 2004 BulkCo. Maritime Co. Carrier LtdSavannah Serena Malta Limnos 2004 BulkMarine Inc. Navigation Carrier Ltd.Sirene Alvey Marine Liberia MSC 2006 ContainerMaritime Co. Inc ScotlandKariba Kosmo Marshall Fortune 2006 ContainerShipping S.A. Services Islands Inc.Muriel Ipanema Marshall Vasos 2006 BulkMaritime Co. Navigation Islands Carrier Corp.Baydream Hinter Liberia MSC Finland 2007 ContainerShipping Inc. Marine S.A.. (ex.West Gate Bridge)Knight Mona Marine Liberia Anafi (Ex. 2007(1) ContainerMaritime S.A. S.A. Ajama)Foyer Marine Ginger Marshall MSC Accra 2007(2) ContainerInc. Marine Islands (Ex.Nautic) Company Oates Trading Risa Malta dormantCorp. Maritime Co. company(3) Ltd.Goldenport MarshallMarine IslandsServices. (1)Vessel Anafi was delivered on 20 July 2007(2)Vessel MSC Accra was delivered on 17 August 2007(3) Risa Maritime Ltd. was the ship owning company of M/V Vana, which was disposed of on 2 May 2007 (Note 6) b) Proportionally consolidated Joint Venture (Note 10) Sentinel Citrus Marshall JES041 2008 BulkHoldings Inc. Shipping Islands Carrier Corp.Sentinel Barcita Marshall JES042 2008 BulkHoldings Inc. Shipping Islands Carrier S.A. 2. Basis of presentation and summary of significant accounting policies (a) Basis of preparation: The Group's interim condensed consolidated financialstatements for the six months ended 30 June 2007 have been prepared using thesame accounting policies and methods of computation used in the preparation ofthe Group's annual financial statements for the year ended 31 December 2006. (b) Statement of compliance: The interim condensed consolidated financialstatements for the six months ended 30 June 2007 have been prepared inaccordance with IAS 34 Interim Financial Reporting,adopted by EU. The interimcondensed consolidated financial statements do not include all the informationand disclosures required in the annual financial statements, and should be readin conjunction with the Group's annual financial statements as at 31 December2006. (c) Accounting for joint ventures (Note 10): A joint venture is an entityjointly controlled by the Group and one or more other ventures in terms of acontractual arrangement. The Group's interest in jointly controlled entities isaccounted for by the proportional consolidation method of accounting. The Groupcombines its share of the joint ventures' individual income and expenses, assetsand liabilities and cash flows on a line-by-line basis with similar items in theGroup's financial statements. The Group recognises the portion of gains orlosses on the sale of assets by the Group to the joint venture that isattributable to the other ventures. (d) IFRS and IFRIC Interpretations that became effective in the year ended 31December 2007: The following Standards and Interpretations became effectivewithin the year ended 31 December 2007. None of the Standards andInterpretations had an impact in the interim condensed consolidated financialstatements for the six months ended 30 June 2007. • IFRS 7, Financial Instruments: Disclosures, and a complementary amendment to IAS 1, Presentation of Financial Statements - Capital Disclosures (effective for financial years beginning on or after 1 January 2007). The Group assessed the impact of IFRS 7 and the amendment to IAS 1 and concluded that additional disclosures will be required in the consolidated financial statements for the year ending 31 December 2007, which will be the sensitivity analysis to market risk and the capital. 3. Cash and cash equivalents For the purpose of the interim condensed consolidated cash flow statement, cashand cash equivalents comprise the following: 30 June, 30 June, 2007 2006 U.S.$'000 U.S.$'000 _________ _________ Unaudited Unaudited Cash at bank 701 1,091Time deposits 70,367 67,630 _________ _________ 71,068 68,721 ========= ========= 4. Voyage & vessel operating expenses The amounts in the accompanying consolidated income statement are analysed asfollows: 6 months 6 months Ended Ended 30 June, 30 June, 2007 2006 U.S.$'000 U.S.$'000 _________ _________ Unaudited Unaudited Voyage expenses (3,267) (1,642)Voyage expenses - related party (1,150) (796) _________ _________ (4,417) (2,438) _________ _________Voyage expenses consist of:Port charges (93) (26)Bunkers (fuel costs)/income (512) 166Commissions (3,812) (2,578) _________ _________Total voyage expenses: (4,417) (2,438) _________ _________Vessel Operating ExpensesCrew expenses (5,942) (4,638)Stores & Consumables (557) (640)Spares (971) (806)Repairs&Maintenance (512) (234)Lubricants (2,197) (1,266)Insurance (2,124) (1,983)Taxes(other than income tax) (313) (213)Other operating expenses (1,299) (405) _________ _________Total vessel operating expenses: (13,915) (10,185) _________ _________ 5. Dividends Dividend rights: Under the Company's by-laws, each ordinary share is entitled todividends if and when dividends are declared by the Board of Directors. Thereare no restrictions on the Company's ability to transfer funds in and out ofMarshall Islands. The payment of final dividends is subject to the approval of the Annual GeneralMeeting of Shareholders. The proposal by the Board of Directors for the finaldividend for 2006, was approved by the AGM held on 17 May 2007. The payment ofdividend made on 21 May 2007 was GBP8,316 (11.9 pence per share) or U.S.$16,441(23.5 US cents per share). 6. Vessels at cost, net Vessels are analysed as follows: 30 June 31 December 2007 2006 U.S.$'000 U.S.$'000 _________ _________ Unaudited Audited CostAt beginning of period/year 150,735 94,260Additions 17,154 56,475Disposals (1,588) - _________ _________At end of period/year 166,301 150,735 _________ _________DepreciationAt beginning of period/year (25,539) (18,051)Depreciation charge for the period/year (5,873) (7,488) _________ _________At end of period/year (31,412) (25,539) _________ _________Net carrying amount of vessels 134,889 125,196Net carrying amount of deferred dry-docking costs 6,026 6,524 _________ _________Net carrying amount 140,915 131,720 ========= ========= Acquisitions On 19 March 2007, the Company took delivery of the M/V West Gate Bridge (renamedto MSC Finland), a container vessel of 3,032 TEU and 40,928 DWT built in 1986for U.S.$17,000. An amount of U.S.$1,700 million had been paid in advance during2006. The gross carrying amount of vessels, which have been fully depreciated to theirresidual value and are still in use after the sale of vessel 'Vana', isU.S.$9,542 (2006: U.S.$11,130) Disposals On 8 February 2007, the company concluded the sale of the 53,522 DWT, 1977-builtvessel "Vana", to an unaffiliated third party. The sale was concluded at agross consideration of US $5,500 in cash and the vessel was delivered to the new owners on 2 May 2007. At the time of her disposal, M/V Vana had a netcarrying amount of U.S.$1,588, which was equal to her scrap value. A commissionof 4% on the gross consideration was paid to an unaffiliated third party. The gain resulting from the sale of the vessel was U.S.$3,692 and is included in theGroup's income statement for the six months ended 30 June 2007. Dry-docking costs Net carrying amount of deferred dry docking costs consists of cost ofU.S.$14,882 and accumulated amortisation of U.S.$8,856. During the six monthperiod ended 30 June 2007, three of the Group's vessels have passed theirDry-docking survey with a total cost of U.S.$2,250 (including dry dockingcomponent of U.S.$165 on the acquisition cost of vessel "Finland"). 7. Advances for vessels acquisition 30 June 31 December 2007 2006 U.S.$'000 U.S.$'000 Unaudited Audited Advances for vessels acquisitions 4,841 1,700 ========= ========= The amount of U.S.$4,841 represents the 10% advance payment for the acquisitionof vessels 'Ajama' and 'Nautic' (Note 17). The respective amount of U.S. $1,700in 2006 represents 10% advance payment for the acquisition of the vessel 'WestGate Bridge'. Upon delivery of the vessels the amounts relating to the advanceare reclassified to the cost of the vessel. 8. Vessels under construction 30 June 31 December 2007 2006 U.S.$'000 U.S.$'000 Unaudited Audited Advances for vessels under construction 12,872 - ========= ========= Vessels under construction represent the Company's contribution of advancepayments made by a joint venture to the shipyard, in connection with theconstruction of two new-building bulk carriers, which are expected to bedelivered by the end of 2008 (Note 10). 9. Vessels under reconstruction The balances as at 30 June 2007 and 31 December 2006 are analysed as follows: 30 June 31 December 2007 2006 U.S.$'000 U.S.$'000 Unaudited Audited Purchase Price 13,000 13,000Capital expenditure for reconstruction 11,692 9,975Capitalised interest and other borrowing costs 716 93 _________ _________Total cost and expenditure for vessel under reconstruction 25,408 23,068 ========= ========= On 16 June 2006, the Group acquired the fire damaged M/V Fortune, a containervessel of 5,551 TEU and 68,537 DWT built in 1996, for U.S.$13,000. The vessel iscurrently under reconstruction and is expected to become operational by theearly 2008 (Note 16). Depreciation on the vessel will commence upon the completion of thereconstruction. All of the Company's operating vessels and vessels under reconstruction, havinga total carrying value of U.S. $166,323 at 30 June 2007 (U.S.$154,788 at 31December 2006), have been provided as collateral to secure the loans discussedin Note 13. The vessels under construction have not been used as collateral asof 30 June 2007. 10. Joint venture On 13 March 2007 the Group entered into a 50% joint venture with theunaffiliated third party Topley Corporation with the objective to construct two53,800 DWT bulk carrier vessels in Jiangsu Eastern Shipyard of China, which areexpected to be delivered in the second half of 2008. The contract price for eachvessel is U.S.$32,000 (U.S.$64,000 in total). The construction of the vesselswill be financed by cash contributions of the joint venture parties and bankfinancing to the joint venture. Payments will be made to the yard based on theconstruction progress schedule on tranches of 20% of the total value. The last20% will be paid upon delivery of the vessels. As part of the joint venture agreement between the Group and Topley Corporation,the Group formed the company Sentinel Holdings Inc., under the laws of theMarshall Islands and transferred 50% of the issued shares (500 shares of no parvalue) to Topley Corporation for US $1.00 per share. Sentinel Holdings Inc. isthe sole shareholder of all the issued share capital of Citrus Shipping Corp.and Barcita Shipping S.A. (ship-owners of JES041 and JES042 hulls respectively). The Company's 50% portion in the stand alone Financial Statements of SentinelHoldings Inc. for the period ended 30 June 2007 is as follows: SENTINEL HOLDINGS INC. 30 June 2007 U.S.$'000 _________ UnauditedASSETSNon-current assetsVessels under construction 12,872 _________TOTAL ASSETS 12,872 ========= 11. Share capital and Share premium Share capital consists of the following: 30 June 31 December 2007 2006 U.S.$'000 U.S.$'000 _________ __________ Unaudited Audited AuthorisedCommon stock of $0.01 each 1,000 1,000 _________ __________Issued and unpaidCommon stock of $0.01 each - - Issued and paidCommon stock of $0.01 each 699 699 _________ __________Total issued share capital 699 699 ========= ========== Formation: The Company was formed on 21 March 2005, and prior to thereorganisation described below, its common stock consisted of 500 sharesauthorised, issued and outstanding, without par value. On 30 March 2006,conditional on admission to the Official List of the London Stock Exchange, theCompany amended its Articles of Incorporation. Under the Company's Amended andRestated Articles of Incorporation, the Company has an authorised share capitalof 100,000,000 shares (all in registered form), consisting of 100,000,000 sharesof common stock with a par value of U.S.$0.01 each, while the initial 500 shareswith no par value were cancelled. Prior to the reorganisation, seventeen holdingcompanies, each in turn owning a vessel - owning company (collectively theContributed Companies), were wholly-owned by Captain Paris Dragnis. Thereorganization was a transaction between companies under common control, and hasbeen accounted for in a manner akin to a pooling of interests for the yearsprior to the reorganisation. Accordingly, the Financial Statements of the Grouphave been presented using historical carrying costs of the ContributedCompanies. The consolidated financial statements have also been prepared on thebasis that Goldenport existed for all years prior to the reorganisation and wasthe parent company of the Contributed Companies in all such years. The reorganisation that took place on 30 March 2006 as well, involved thefollowing steps: A. Captain Paris Dragnis contributed all of his shares held in the seventeenintermediate holding companies to Goldenport, in exchange for shares of commonstock in Goldenport, fulfilling his obligation for the Company's share capital,in accordance with the share for share agreement exchange dated 30 March 2006;and B. Captain Paris Dragnis transferred all of the shares of common stock inGoldenport to Starla Shipholding Corporation (Starla), a company wholly owned byCaptain Paris Dragnis; as a result Starla was, prior to the admission to theOfficial List of the London Stock Exchange, the sole shareholder of the Companybeginning of the earliest year presented. Starla is the ultimate holding companyof the Group C. Following completion of the reorganisation, the Contributed Companieswere wholly-owned subsidiaries of Goldenport D. On 5 April 2006 the Company was admitted to the Official List of theLondon Stock Exchange, issuing 25,531,915 shares of U.S.$0.01 each. On 11 April2006 the over allotment option was exercised for 2,553,191 shares at GBP 2.35per share bringing the total offer to GBP66,000 (or U.S.$ 115,465). The analysis of the Share premium is as follows: U.S. $'000 __________Proceeds from Initial Public Offering, gross 115,465Issuance costs (8,193) __________Proceeds from Initial Public Offering, net 107,272Nominal share capital cost (281) __________Share premium 106,991 ========== 12. Earnings per share Basic earnings per share ("EPS") are calculated by dividing the profit for theperiod attributable to Goldenport Holdings Inc. shareholders (U.S.$32,273 andU.S.$21,732 for the periods ended 30 June 2007 and 30 June 2006, respectively),by the weighted average number of shares outstanding (69,885,106 and 55,059,668for the periods ended 30 June 2007 and 30 June 2006, respectively). The weightedaverage number of shares outstanding reflects the issuance of shares for theContributed Companies in the reorganisation described in note 11 as if they hadbeen issued at the beginning of the earliest year presented. Diluted EPS reflects the potential dilution that could occur if share options orother contracts to issue shares were exercised or converted into shares. Sinceno such options or contracts existed as at 30 June 2007 and 2006 the numeratorsand denominators used to calculate Diluted EPS are the same with those used tocalculate Basic EPS, as disclosed above. Date Number of shares as of year / period end 31 December, 2006 (audited) 69,885,10630 June, 2007 (unaudited) 69,885,106 Weighted average number of shares in the six month period ended 30 June, 2007 (unaudited) 69,885,106 13. Long-term Debt The amounts in the accompanying balance sheets are analysed as follows: 30 June 2007 31 December 2006 Unaudited Audited U.S.$'000 U.S.$'000Bank Loan Vessel(s) Amount Rate % Amount Rate %_________ _________ ______ ______ ______ ______a. Issued 13 February Lindos 2,800 6.47% 3,150 6.13%2003, maturing 30 May2009b. Issued 31 March Tilos, 6,700 6.10% 7,400 6.09%2004, maturing 30 LimnosSeptember 2010c. Issued 17 May 2005, Beauty, 14,400 6.36% 17,000 6.09%maturing 17 May 2009 Msc Emirates, Achim, Alex D, Gianni D, Msc Socotra, Howrah Bridged. Issued 26 June 2006, Msc Scotland 14,300 6.35% 15,900 6.42%maturing 26 September (ex.Bengal sea)2011e. Issued 19 July 2006, Vasos (ex.Orient 16,550 6.27% 17,500 6.49%maturing 16 July 2011. Alliance)f. Issued 14 November Fortune, Tuas 21,500 6.36% 20,000 6.38%2006, maturing 28 Express, Athos,November 2009. Ios, Msc Himalayia, Glory D, Samosg. Issued 14 March Msc Finland 10,400 5.89% -2007, maturing 14 March (ex.West Gate2012. Bridge) ______ ______Total 86,650 80,950Less: financing costs (290) (323)Less: current portion (22,641) (19,780) ______ ______Long-term portion 63,719 60,847 ====== ====== The repayment terms of loans with balances outstanding at 30 June 2007 are: Loan a: This loan is repayable in four six-monthly instalments of U.S.$350 each,the first one being due on 30 November 2007 and the final one being due on 30May 2009, along with a balloon payment of U.S.$1,400. Loan b: This loan is repayable in seven six-monthly instalments of U.S.$700each, the first one being due on 30 September 2007 and the final one being dueon 30 September 2010, along with a balloon payment of U.S.$1,800. Loan c: This loan is repayable in nine quarterly instalments of U.S.$1,300 each,the first one being due on 17 August 2007 and the final one being due on 17August 2009, along with a balloon payment of U.S.$2,700. Loan d: This loan is repayable in eight quarterly instalments of U.S.$800 each,the first one being due on 26 September 2007 and the eighth being due on 26 June2009, eight quarterly instalment of U.S.$600 each, the first one being due on 26September 2009 and the final one being due on 26 June 2011, plus a balloonpayment of U.S.$3,100, being due on 26 September 2011. Loan e: This loan is repayable in nine semi-annual instalments of U.S.$1,450each, the first one being due on 16 July 2007 and the final one being due on 16July 2011, along with a balloon payment of U.S.$3,500. Loan f: On 14 November 2006 the Group signed an agreement for a secured termloan facility of U.S.$30,000. The Group will utilise the U.S.$25,000 in order toreconstruct the M/V Fortune and the rest was used for repayment of existingloans (the vessels involved in the agreement were used as collateral to theloan).U.S$25,000 has already been drawn (U.S.$ 10,000 in November 2006,U.S.$10,000 in late December 2006 and U.S.$ 5,000 in late June 2007 ). Theremaining U.S.$5,000 will be drawn by the end of 2007. The amount of U.S.$25,000 drawn, was partially utilised to repay existing loans and partially tofinance the reconstruction of M/V Fortune. This loan is repayable in sixquarterly instalments of U.S.$1,750 each, the first one being due on 14 August2007 and the last one being due on 14 November 2008 and four quarterlyinstalments of U.S.$1,000 each with the first one being due on 14 February 2009and the last one being due on 14 November 2009 along with a balloon payment ofU.S.$12,000. Repayments include the amount of 5,000 which is committed, yetundrawn (Note 16). Loan g: This loan was obtained to partially finance the acquisition cost of theM/V Finland (Note 6) and is repayable by eleven quarterly instalments ofU.S.$600 each, the first one being due on 14 September 2007 and the eleventh on15 March 2010 and eight quarterly instalment of U.S.$475 each, the first onebeing due on 15 June 2010 and the final one being due on 15 March 2012.Loans (a-f) are denominated in U.S. dollars, and bear interest at LIBOR plus amargin. Loan g is also denominated in U.S. dollars. For the first 11 instalmentsthe loan bears fixed interest of 5.89% and for the last eight instalments theloan bears interest at LIBOR plus a margin. Total interest paid was U.S.$2,688 and U.S.$1,884 for the periods ended 30 June2007 and 30 June 2006, respectively. The loan agreements contain covenants including restrictions as to changes inmanagement and ownership of the vessels, additional indebtedness and mortgagingof vessels without the bank's prior consent as well as minimum requirementsregarding hull cover ratio and corporate guarantees of the Holdings. Therestricted net assets of the vessel-owning subsidiary companies at 30 June 2007and 31 December 2006 consisted of restricted cash and amounted to U.S.$511 andU.S.$1,166 respectively. 14. Trade receivables 30 June 31 December 2007 2006 U.S.$'000 U.S.$'000 Unaudited Audited Charterers 3,409 1,275 _________ __________Total 3,409* 1,275 _________ __________ *Out of the above amount, U.S.$2,859 was collected in July 2007. 15. Related party transactions Transactions with related parties consist of the following: 6 months 6 months Ended Ended 30 June 30 June 2007 2006 U.S.$'000 U.S.$'000 _________ _________ Unaudited Unaudited Voyage expenses - related PartyGoldenport Shipmanagement Ltd 1,150 796Management fees - related partyGoldenport Shipmanagement Ltd 1,804 1,607 _________ _________Total 2,954 2,403 ========= ========= Balances due from related parties consist of the following: 30 June 31 December 2007 2006 U.S.$'000 U.S.$'000 _________ _________ Unaudited AuditedDue from related parties -CurrentGoldenport Shipmanagement Ltd 2,356 811 _________ _________Total 2,356 811 ========= ========= 16. Commitments and contingencies Various claims, suits, and complaints, including those involving governmentregulations and product liability, arise in the ordinary course of the shippingbusiness. In addition, losses may arise from disputes with charterers, agents,insurance providers and from other claims with suppliers relating to theoperations of the Group's vessels. Currently, management is not aware of anysuch claims or contingent liabilities, which should be disclosed, or for which aprovision should be established in the consolidated financial statements. As explained in Note 9, on 16 June 2006, the Group acquired the M/V Fortune, acontainer vessel of 5,551 TEU and 68,537 DWT built in 1996, for U.S.$13,000. Thevessel was damaged in a fire on 21 March 2006. The vessel is expected to becomeoperational early 2008. The total estimated cost of reconstruction, excludingthe initial acquisition cost of U.S.$ 13,000, is estimated to be approximatelyU.S.$ 30,000. As of 30 June 2007, the expenditure incurred for reconstructionamounted to U.S.$11,692 (U.S.$ 9,975 as of 31 December 2006). The remainingamount of approximately U.S.$ 18,300, to reach the total estimatedreconstruction cost of U.S.$ 30,000, is to be incurred according to the progressof reconstruction up to the delivery date. The main component of the remaining reconstruction costs of U.S.$18,300, is thecost of the yard that will undertake the major repairs. In this respect theGroup has entered, into an agreement with COSCO Zhoushan yard for an amount ofU.S.$12,490, which will be payable based on the progress of the repairs. Theremaining estimated cost mainly concerns spare parts for the vessel. Asdescribed in note 13, at 30 June 2007, the Group had available U.S.$5,000 ofcommitted yet undrawn borrowing facility in respect of loan f., for thereconstruction of the vessel 'Fortune' (as at 31 December 2006, the committedbut not yet drawn amount was U.S.$ 10,000). Future Minimum Charters: Future minimum receivables from time charter arrangements already contracted foras at 30 June 2007 and 31 December 2006, are as follows (it is noted that thevessel off-hires and dry-docking days that could occur but are not currentlyknown are not taken into consideration; in addition early delivery of thevessels by the charterers is not accounted for, but the vessels not yetdelivered but already fixed are included): 30 June 31 December 2007 2006 U.S.$'000 U.S.$'000 Unaudited Audited Within one year 105,940 67,602After one year but not more than five years 164,959 84,968More than five years 7,173 - _________ _________ 278,071 152,570 _________ _________ 17. Events after the balance sheet date Vessels acquisitions: As of 30 June 2007, the Group has paid an advance of 10%, of the purchase price,for the acquisition of the container vessel "Ajama" and upon delivery on 20 July2007, the Group paid the remaining 90% of the agreed price, amounting toU.S.$32,400. The remaining amount includes U.S.$23,500 of loan facility that wasdrawn-down in full on the day of delivery. As of June 30 2007, the Group has paid an advance of 10%, of the purchase price,for the acquisition of the container vessel "Nautic" and upon delivery on 17August 2007, the Group paid the remaining 90% of the agreed price, amounting toU.S.$11,115. The remaining amount includes U.S.$8,100 of loan facility that wasdrawn-down in full on the day of delivery. On 7 September the Group has paid an advance of 10% amounting to US$ 1,920, ofthe purchase price of US$ 19,200, for the acquisition of a sub-panamax containervessel built in 1993. Loan facility: On 24 August the Company has agreed with a bank a term facility for a total amount of US$ 48,000 in order to finance the Joint Venture vessels (see note 10). The amount that relates to the Group's participation in the Joint Venture is US$ 24,000. Insurance claim: On 4 September 2007, the Group received an advance payment of US$ 492 relatingto the insurance claim receivables. Dividends: On 10 September 2007 the Board of Directors approved an interim dividend of 7.00pence per share amounting to GBP4,892. The interim dividend is expected to bepaid in October 2007. The respective interim dividend of 2006 amounted to GBP3,914 (5.6 pence per share) or U.S.$7,424 (10.6 US cents per share) and waspaid in October 2006. APPENDICES FORWARD COVERAGE The percentage of available days of the fleet already fixed under contracts (assuming latest charter expiration and exercise of all additional hire periods under charter) is as follows, as of 11th September: 2007(1) (2) 2008(1) (2) 2009(1) (2) Total Fleet 99% (99%) 78% (77%) 53% (51%)Containers 99% (100%) 87% (92%) 63% (63%)Bulk Carriers 99% (98%) 67% (56%) 42% (38%) (1) Percentage of available days of the fleet fixed under contract as reportedon 11 July 2007 is given in brackets (2) The percentages above do not include the vessel 'Fortune' which is under reconstruction, the two new-building bulk carriers which will be delivered in 2008, the proposed acquisitions of the six vessels and the vessel announced on 7th September 2007. FLEET EMPLOYMENT PROFILE Vessel Type Capacity Rate Charter Expiration (US$) per dayContainers TEU Earliest Latest(1) Fortune Post 5,551 Under reconstruction PanamaxMSC Finland Sub 3,032 16,500 Feb-10 Apr-10 PanamaxMSC Scotland Sub 3,007 20,770 Sep-09 Nov-09 PanamaxAnafi Sub 2,420 19,000 Mar-08 May-08 PanamaxMSC Socotra Sub 2,258 8,000 Mar-08 Mar-08 Panamax 14,350 Mar-13 May-13Howrah Bridge Sub 2,257 14,180 Jul-09 Sep-09 PanamaxMSC Himalaya Sub 2,108 12,700 Dec-08 Jan-09 PanamaxMSC Accra Sub 1,889 14,200 Jun-12 Aug-12 PanamaxMSC Mekong Handy 962 6,150 Feb-09 Apr-09MSC Emirates Handy 934 7,000 Jan-09 Feb-09Glory D Handy 946 9,600 Feb-09 Apr-09Achim Handy 930 7,600 Nov-07 Nov-07Tuas Express Feeder 485 8,900 Dec-07 Dec-08 Dry Bulk DWT Vasos Capesize 152,065 23,950 Feb-11 Aug-12Samos (2) Capesize 136,638 32,000 Oct-08 Dec-08Ios Panamax 69,737 12,500 Sep-07 Sep-07 26,000 Apr-09 Jun-09Gianni D Panamax 69,100 26,000 Oct-07 Oct-07 51,500 Dec-08 Apr-09Athos (3) Panamax 67,515 16,750 Sep-07 Sep-07 19,300 Mar-10 Aug-10New Building 1(4) Supramax 53,800 18,000 Q3, 2011 Q3, 2011New Building 2 (4) Supramax 53,800 To be delivered in 2008Alex D Handymax 52,315 30,000 Oct-07 Dec-07Limnos Handymax 52,266 31,500 Nov-07 Jan-08Lindos Handymax 52,266 14,500 Jul-09 Nov-09Tilos Handymax 52,266 27,750 Nov-07 Nov-07 (1) Represents last day on which the charter may redeliver the vesselassuming exercise of all additional hire periods under charter(2) The vessel is currently in dry-docking. It will be delivered tothe next charter in October 2007.(3) Athos between contracts will undergo dry-docking(4) 50% owned through a joint venture, both vessels to be delivered in2008 Total revenue for the years 2007, 2008 and 2009 deriving from contracts alreadyfixed is US$ 288 million (US$ 263 million as per 11th July announcement),assuming latest charter expiration and exercise of all additional hire periods under charter. The calculation excludes the vessel 'Fortune' which is underreconstruction, the two new-build bulk carriers which will be delivered in2008, the proposed acquisitions of the six vessels and the vessel announced on7th September 2007. 2. Notes on Summary of Selected Financial and Operating Data: (1) Average number of vessels is the number of vessels that constituted our fleet for the relevant period, as measured by the sum of the number of days each vessel was a part of our fleet during the period divided by the number of calendar days in the period.(2) Ownership days are the aggregate number of days in a period during which each vessel in our fleet has been owned by us. Ownership days are an indicator of the size of our fleet over a period and affect both the amount of revenues and the amount of expenses that we record during a period.(3) Available days are the number of our ownership days less the aggregate number of days that our vessels are off-hire due to scheduled repairs or repairs under guarantee, vessel upgrades or special surveys and the aggregate amount of time that we spend positioning our vessels. The shipping industry uses available days to measure the number of days in a period during which vessels should be capable of generating revenues.(4) Operating days are the number of available days in a period less the aggregate number of days that our vessels are off-hire due to any reason, including unforeseen circumstances. The shipping industry uses operating days to measure the aggregate number of days in a period during which vessels actually generate revenues.(5) We calculate fleet utilisation by dividing the number of our operating days during a period by the number of our available days during the period. The shipping industry uses fleet utilisation to measure a company's efficiency in finding suitable employment for its vessels and minimising the amount of days that its vessels are off-hire for reasons other than scheduled repairs or repairs under guarantee, vessel upgrades, special surveys or vessel positioning.(6) Daily vessel operating expenses, which include crew wages and related costs, the cost of insurance, expenses relating to repairs and maintenance, the costs of spares and consumable stores, tonnage taxes and other miscellaneous expenses, are calculated by dividing vessel operating expenses by ownership days for the relevant period.(7) TCE rates are defined as our time and voyage charter revenues less voyage expenses during a period divided by the number of our available days during the period, which is consistent with industry standards. Voyage expenses include port charges, bunker (fuel oil and diesel oil) expenses, canal charges and commissions. TCE rate is a standard 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 are generally not expressed in per day amounts while charter hire rates for vessels on time charters are generally expressed in such amounts. This information is provided by RNS The company news service from the London Stock Exchange