30 Jul 2009 07:00
Goldenport Holdings Inc.
Athens, 30 July 2009
TRADING UPDATE
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 releases today the update on the trading of its fleet as of 29 July 2009.
Operational Fleet Forward Coverage:
The percentage of available days of the fleet already fixed under contracts as of 29 July 2009 assuming the earliest charter expiration is as follows:
| 2009(1) (2) | 2010(1) (2) | 2011 (1) (2) | |
| Total Fleet | 94% (87%) | 67% (53%) | 45% (33%) |
| Containers | 96% (94%) | 78% (63%) | 63% (46%) |
| Bulk Carriers | 92% (75%) | 45% (34%) | 17% (11%) |
(1) Percentage of available days of the fleet fixed under contract as reported on 12 May 2009, being the date of the last trading update, is given in brackets
(2) The percentages above include the currently operational fleet, the vessel 'Alpine Trader' which is expected to be delivered in September 2009 and exclude the eight new-build vessels for which we expect delivery from 2010 onwards, although five of them are already chartered.
Assuming earliest charter expiration, the estimated total revenue for the years 2009, 2010 and 2011 deriving from contracts already fixed for the operational part of the fleet (including 'Alpine Trader' that is expected to be delivered in September 2009) is US$ 192 million (US$ 176 million as of 12 May 2009). This calculation excludes the eight new-build vessels for which we expect delivery from 2010 onwards.
CEO Statement:
Captain Paris Dragnis, Founder and Chief Executive Officer of the Company commented:
"We continue to believe that initiatives taken in the wake of difficult trading conditions that commenced in the fourth quarter 2008, have continued to safeguard the Company and position it well for any market recovery.
"During the first months of 2009 we took the decision to shift contracts fixed during 2008 on older vessels of our container fleet to younger vessels that were re-opening for re-chartering, which has seen the time charter contracts of the fully depreciated container vessels 'MSC Emirates' built in 1979, 'MSC Socotra' built in 1980 and 'MSC Himalaya' built in 1978 being transferred to the container vessels 'Brilliant' 1992-built, 'MSC Socotra (ex. Procyon)' 1995-built and 'MSC Scotland' 1992-built enhancing the forward coverage of our container fleet beyond 2010. This strategy enabled us to maintain profitable employment for our younger tonnage and dispose of the older fully depreciated vessels for scrap; the sale of 'MSC Emirates', 'MSC Socotra' and 'MSC Himalaya' during the second quarter realised total gross proceeds of US$ 7.9 million, further strengthening our balance sheet.
"In the present environment of weak market conditions in the container segment, we are particularly pleased to report strong forward coverage for our containers fleet where, assuming earliest charter expiration, 96% of the available days for 2009, 78% for 2010 and 63% for 2011 are already fixed under period employment enhancing the visibility of our cash flows.
"Within the context of our continued fleet renewal, we took advantage of the recent rebound in the dry cargo market and realized an attractive profit on the sale of 'Gianni D', a 1998-built Panamax dry bulk carrier which was sold for US$ 20 million, realising strong profit on disposal. The vessel was delivered to the new owners on 27 July 2009 and as it was debt free the full sale proceeds of US$ 20 million further strengthened our cash position.
"We also used the rebound in the dry-bulk rates to fix at higher rates our bulk carrier vessels that opened for re-chartering and to fix for two years our new build bulk carrier 'Alpine Trader' which is expected to be delivered in September 2009.
"As of today, we have secured strong forward coverage for our combined fleet of containers and dry bulk carriers with 94% of the fleet available days for 2009, 67% for 2010 and 45% 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 given that as of 30 June 2009 our net debt was only US$ 127.3 million and our net debt to book capitalisation was 32.6%, a moderate figure for our industry.
"Our strong forward time charter coverage in both segments in which we operate, our new-building program which progresses on track and our strong balance sheet, enable us to feel confident about the future growth prospects of our Company even in today's difficult environment and puts us in a strategic position to take advantage of accretive fleet expansion opportunities as these may occur."
Fleet Employment Profile:
| Operational fleet | ||||||
| Vessel | Type | Capacity | Rate (US$) per day | Earliest | ||
| Expiration (1) | ||||||
| Containers | TEU | |||||
| 1 | MSC Fortunate (2) | Post Panamax | 5,551 | 28,500 | Feb-13 | |
| 2 | MSC Socotra (ex. Procyon) | Post Panamax | 4,953 | 12,350 | Apr-13 | |
| 3 | Bosporus Bridge | Sub Panamax | 3,720 | 14,750 | Feb-12 | |
| 4 | MSC Finland (3) | Sub Panamax | 3,032 | 16,500 | Apr-10 | |
| 6,800 | Apr-11 | |||||
| 5 | MSC Scotland (3) | Sub Panamax | 3,007 | 20,770 | Sep-09 | |
| 14,500 | Mar-11 | |||||
| 6,800 | Mar-12 | |||||
| 6 | Anafi (4) | Sub Panamax | 2,420 | Note 4 | ||
| 7 | Howrah Bridge | Sub Panamax | 2,257 | 14,180 | Jul-09 | |
| 4,850 | Mar-10 | |||||
| 8 | MSC Accra | Sub Panamax | 1,889 | 14,200 | Jun-12 | |
| 9 | Gitte (5) | Handy | 976 | Euro 5,250 | Aug-09 | |
| Euro 6,950 | Apr-10 | |||||
| 10 | Brilliant (6) | Handy | 976 | 6,000 | Jun-12 | |
| 11 | MSC Mekong | Handy | 962 | 7,000 | Jan-11 | |
| Dry Bulk | DWT | |||||
| 12 | Vasos | Capesize | 152,065 | 23,950 | Feb-11 | |
| 13 | Marie-Paule (7)(8) | Supramax | 53,800 | 18,000 | Jan-12 | |
| 14 | Alpine-Trader (8)(10) | Supramax | 53,800 | 15,300 | Aug-11 | |
| 15 | Alex D | Supramax | 52,315 | 26,000 | Nov-09 |
|
| 16 | Limnos | Supramax | 52,266 | 14,900 | Oct-09 | |
| 17 | Lindos | Supramax | 52,266 | 10,000 | Aug-09 | |
| 18 | Tilos | Supramax | 52,266 | 20,500 | Aug-10 | |
| Vessels under construction | ||||||
| Vessel / Yard name | Type | Capacity | Scheduled Delivery | |||
| Containers | TEU | |||||
| 19 | Jiangsu Yangzijiang | Sub Panamax | 2,500 | 2010 | ||
| 20 | Jiangsu Yangzijiang | Sub Panamax | 2,500 | 2011 | ||
| Vessel or Yard name | Type | Capacity | Scheduled Delivery | Rate (US$) per day | ||
| Dry Bulk | DWT | |||||
| 21 | COSCO (9) | Supramax | 57,000 | 2010 | 17,650+50% profit share at BSI(11) + 5% | |
| 22 | COSCO | Supramax | 57,000 | 2010 | - | |
| 23 | COSCO (9) | Supramax | 57,000 | 2011 | 25,000 | |
| 24 | COSCO (9) | Supramax | 57,000 | 2011 | 17,700+50% profit share at BSI(11) + 5% over 18,200 | |
| 25 | QINGSHAN (9) | Supramax | 57,000 | 2010 | 27,000 | |
| 26 | QINGSHAN | Supramax | 57,000 | 2010 | - | |
| (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 vessels will continue with the same charterer with the rates as stated in direct continuation | ||||||
| (4) The vessel is currently laid-up minimising the operating expenses | ||||||
| (5) The charter of the vessel Gitte is received in Euros | ||||||
| (6) The vessel's previous name was 'Tiger Star' | ||||||
| (7) Effectively the charter rate is US$18,000 per day. For the first six months until August 2009 the rate is US$ 14,000 per day and for the remaining period to the end of the contract the rate will be US$18,000. The opportunity cost of the difference between the two rates for the first six months has been obtained from the yard as a discount from the final vessel's value | ||||||
| (8) Both vessels owned under a 50:50 joint venture with Glencore International AG | ||||||
| (9) The charter term is for three years from delivery | ||||||
| (10) The vessel 'Alpine Trader' is scheduled for delivery in September 2009 | ||||||
| (11) BSI: Baltic Supramax Index | ||||||
Second Quarter 2009, Selected Financial and Operating Data:
| Balance Sheet Data (in US$ million): |
| 30 June 2009 (Unaudited) |
| Gross Debt | 146.0 | |
| Cash | 16.7 | |
| Advance on sale of Gianni D (released on delivery, 27 July) | 2.0 | |
| Total cash (including Gianni D advance received) | 18.7 | |
| Net Debt | 127.3 | |
| Expected Net Debt to book capitalization | 32.6% | |
| FLEET DATA: |
| Quarter 2, 2009 |
| Average number of vessels in operation | (1) | 20.3 |
| Number of vessels at end of period: | ||
| - Operating | 17 | |
| - Non-Operating | 1 | |
| - New Buildings under construction | 9 | |
| Ownership days | (1) (2) | 1,848 |
| Available days | (1) (2) | 1,727 |
| Operating days | (1) (2) | 1,669 |
| Fleet utilization | 96.6% | |
(1): Number of vessels in operation, ownership, available and operating days in the second quarter, include the container vessels 'MSC Socotra', 'MSC Himalaya' and 'MSC Emirates' that were sold on 4 June, 9 June and 16 June 2009 respectively, and the bulk carrier vessel 'Gianni D' that was sold but was still in operation as of 30 June 2009.
(2): Ownership, available and operating days exclude the 9 vessels that will be delivered in a future date.
Second Quarter 2009, Review of Operations:
Fleet utilisation of 96.6% for Q2 2009 (94.2% for Q1) would have been higher, but the vessel 'Procyon' only became operational in late April despite being delivered to the Company on 4 March 2009 and the vessel 'Anafi' after the completion of its dry-docking in June was laid-up, thus minimising operating expenses.
Since 1 April 2009 the Company has repaid US$ 7.7 million of scheduled loan instalments, has prepaid another US$ 5.1 million and has drawn-down US$ 3.8 million of previously committed bank debt in order to finance the new building programme.
As of 30 June the net debt was US$ 127.3 million (US$ 134.7 million as of 31 March 2009) and net debt to book capitalisation was 32.6% (33.9% as of 31 March 2009).
Profitable Vessel disposals:
On 22 May 2009 the Company agreed the sale for scrap of the 2,258 TEU, 1980-built fully depreciated container vessel 'MSC Socotra'. The sale was concluded at a gross consideration of US$ 3.5 million in cash and the vessel was delivered to the new owners on 4 June 2009.
On 22 May 2009 the Company agreed the sale for scrap of the 2,108 TEU, 1978-built fully depreciated container vessel 'MSC Himalaya'. The sale was concluded at a gross consideration of US$ 3.1 million in cash and the vessel was delivered to the new owners on 9 June 2009.
On 3 June 2009 the Company agreed the sale for scrap of the 934 TEU, 1979-built fully depreciated container vessel 'MSC Emirates'. The sale was concluded at a gross consideration of US$ 1.3 million in cash and the vessel was delivered to the new owners on 16 June 2009.
On 2 June 2009 the Company agreed the sale of the 1998-built Panamax bulk carrier vessel 'Gianni D'. The sale was concluded at a gross consideration of US$ 20.0 million in cash and the vessel was delivered to the new owners on 27 July 2009. The vessel was debt free, so on the delivery date the full consideration from the sale further strengthened the balance sheet of the Company.
- 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 (0) 20 3206 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 thirteen container vessels (including two new-build vessels with deliveries scheduled for 2010 and 2011) and thirteen 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