Grindrod Shipping Holdings Ltd. (NASDAQ: GRIN) (JSE: GSH)
(“Grindrod Shipping” or "Company" or “we” or “us”), a global
provider of maritime transportation services in the drybulk and
product tanker sectors, today announced its second half and full
year 2020 earnings results for the period ended December 31, 2020.
Financial Highlights for the Second Half
of the Year Ended December 31, 2020(1)
- Revenue of $112.1 million
- Gross profit of $6.2 million
- Adjusted EBITDA of $18.5
million(2)
- Loss for the period attributable to
owners of the Company of ($28.3 million) or ($1.49) per ordinary
share including ($12.6 million) impairment losses on ships
- Handysize and supramax/ultramax TCE
per day of $7,535 and $10,887 respectively.
- Supramax/ultramax outperformed the
Baltic Supramax-58 TC Index (the “BSI-58”)(3) benchmark by
approximately 11.0% in the second half of 2020(2)(4)
- Medium range tanker TCE per day of
$7,960, and small tanker TCE per day of $13,680 in the second half
of 2020(2)
- Period end cash and bank balances
of $50.6 million, including restricted cash of $12.6 million.
Financial Highlights for the Full Year
Ended December 31, 2020(1)
- Revenue of $279.2 million
- Gross profit of $15.1 million
- Adjusted EBITDA of $47.3
million(2)
- Loss for the period attributable to
owners of the Company of ($38.8 million) or ($2.05) per ordinary
share including ($16.3 million) impairment losses on ships
- Handysize and supramax/ultramax TCE
per day of $6,629 and $10,072 respectively. Supramax/ultramax
outperformed the BSI-58(3) benchmark by approximately
29.5%(2)(4)
- Medium range tanker TCE per day of
$16,339, and small tanker TCE per day of $12,374(2).
(1) Our segment results include the
proportionate share of our joint ventures, which differs from the
consolidated statements of profit or loss in our unaudited
condensed consolidated financial statements which account for our
investments in joint ventures under the equity method.(2) Adjusted
EBITDA and TCE per day are non-GAAP financial measures. For the
definitions of these non-GAAP financial measures and the
reconciliation of these measures to the most directly comparable
financial measures calculated and presented in accordance with
GAAP, please refer to the definitions and reconciliations in
“Non-GAAP Financial Measures” at the end of this press release.(3)
The BSI-58 is adjusted for 5% commissions to be comparable to
Grindrod Shipping’s TCE per day.(4) As of January 1, 2020 the
Baltic Exchange discontinued publishing the Baltic Handysize-28 TC
Index and replaced it with the Baltic Handysize-38 TC Index. The
new Baltic Handysize-38 TC Index does not reflect the ship types
comparable to our handysize fleet and we do not believe it is an
appropriate benchmark going forward.
Operational Highlights for the second
half of the year ended December 31, 2020
- On July 9, 2020, we redelivered the
2013-built long-term chartered-in medium range tanker Doric
Breeze.
- On September 2, 2020, we sold the
2004-built handysize drybulk vessel IVS Nightjar for a gross price
of $5.1 million.
- On September 15, 2020, we took
delivery of a Japanese-built eco ultramax drybulk carrier IVS
Pebble Beach on a long-term charter for a minimum period of two
years. We have an option to extend for up to two additional years
and options to purchase the vessel in the future.
- On November 2, 2020, we sold the
2009-built handysize drybulk vessel IVS Triview for a gross price
of $7.9 million. The vessel was owned by a joint venture in which
we held a 51% share.
- On November 15, 2020, we agreed to
extend the IVS Pinehurst long-term charter for a period of 11 to 13
months commencing November 15, 2020. We retain the option to
purchase this vessel at a fixed price in the future and have a
further option to extend the period of the charter for an
additional 11 to 13 months.
- On December 1, 2020, a loan of $4.0
million provided by us to IVS Bulk Pte. Ltd. (“IVS Bulk”) was
converted to equity in the form of “A Class” shares in line with
the shareholders agreement dated February 14, 2020. The loan was
initially provided on September 30, 2020 with interest calculated
at LIBOR plus 3.1% The transaction increased our shareholding by
2.11% in IVS Bulk from 66.75% to 68.86%.
- On December 22, 2020, we completed
a financing arrangement with two Japanese shipowners relating to
the 2016-built medium range tanker Matuku from which we received
cash proceeds of $26.8 million (before commissions but net of
charter pre-payments). The transaction generated net proceeds of
$9.3 million after settling the debt associated with the vessel.
The net proceeds, together with cash on hand, were used to repay
$10 million of the $35.8 million senior secured credit facility.
The Matuku continues to be considered part of our owned fleet.
- On December 23, 2020, we took
delivery of a Japanese-built eco ultramax drybulk carrier IVS
Atsugi on a long-term charter for a minimum period of two years. We
have an option to extend for up to two additional years and options
to purchase the vessel in the future.
- On December 30, 2020, the parties
to the relevant agreements entered into amendments to our $100.0
million senior secured credit facility, our $29.9 million senior
secured credit facility, and our $114.1 million senior secured
credit facility, respectively. The covenants were amended to (1)
reduce the book value net worth covenant to be tested as of
December 31, 2020 from $240 million to $225 million; (2) increase
the debt to market adjusted tangible fixed assets covenant from not
more than 75% to not more than 80% as of December 31, 2020; and (3)
exclude from the determination of current liabilities in the
covenant that requires our current assets to exceed our current
liabilities the amount owed to Sankaty under the $35.8 million
senior secured credit facility for purposes of testing as of
December 31, 2020.
Recent Developments
- We agreed to extend the charter-in
of the 2014-built Japanese eco supramax vessel IVS Crimson Creek
for a period of 11 to 13 months commencing April 1, 2021.
- As of February 22, 2021, we have contracted the following TCE
per day(1)(2)(3):
- Handysize: approximately 1,425
operating days at an average TCE per day of approximately
$10,545;
- Supramax/ultramax: approximately
2,241 operating days at an average TCE per day of approximately
$12,540; and
- Tankers: approximately 165
operating days at an average TCE per day of approximately
$11,757(4).
(1) Our segment results include the
proportionate share of our joint ventures, which differs from the
consolidated statements of profit or loss in our unaudited
condensed consolidated financial statements, which account for our
investments in joint ventures under the equity method.(2) TCE per
day is a non-GAAP financial measure. For the definition of this
non-GAAP financial measure and the reconciliation of this measure
to the most directly comparable financial measure calculated and
presented in accordance with GAAP, please refer to the definitions
and reconciliations in “Non-GAAP Financial Measures” at the end of
this press release.(3) Operating days are the number of available
days in the relevant period a vessel is controlled by us after
subtracting the aggregate number of days that the vessel is
off-hire due to a reason other than scheduled drydocking and
special surveys, including unforeseen circumstances. We use
operating days to measure the aggregate number of days in a
relevant period during which vessels are actually available to
generate revenue.(4) Excludes Matuku. We have combined the guidance
for our tanker segment as we have only two medium range tankers
(excluding Matuku) and one small tanker trading spot.
CEO Commentary
Martyn Wade, the Chief Executive Officer of
Grindrod Shipping, commented:
“During the second half of 2020, our focus has
been on navigating the continued market effects of the COVID-19
pandemic while completing the streamlining of our corporate
structure and taking advantage of favorable refinancing
opportunities. Despite the extensive operational challenges caused
by the pandemic and the exceptionally weak drybulk markets, we
managed to continue our commercial outperformance.
“With the consummation of the IVS Bulk
transaction during the first half of 2020 and the disposal of the
IVS Triview in November 2020, we completed the streamlining of our
corporate structure. All owned vessels are currently consolidated
compared to 19 vessels held in unconsolidated joint ventures in
June 2018 when we initially went public.
“We further modernized our drybulk fleet with
the delivery of two Japanese newbuild ultramax eco vessels, the IVS
Pebble Beach and the IVS Atsugi under long-term charters-in with
purchase options while disposing of two older handysize
vessels.
“Leveraging our long-standing relationships with
leading Japanese industry participants, in December 2020 we
concluded a sale and lease back transaction under attractive terms
for one of our product tankers. This transaction enabled us to
refinance an impending maturity and repay early $10 million on one
of our senior secured credit facilities, thereby reducing our
average interest rate and materially reducing our remaining
scheduled maturities in 2021.
“Overall, despite the negative market impact of
COVID-19 on our markets and the shipping industry broadly, 2020 has
been a transformational year for our company and positions us to
look ahead with cautious optimism. The first quarter of 2021 has
started in a positive way and we expect dry bulk fundamentals to
continue improving. As the world transitions out of the pandemic,
demand is increasing and is being further aided by stimulus
packages around the world. At the same time, the historically low
orderbook and the expected impact of new environmental regulations
limit ship supply, creating the potential for a tighter balance
with demand. In this environment, we believe that Grindrod Shipping
is well positioned to benefit, leveraging our competitive
advantages including our modern, high quality Japanese-built eco
fleet and our ability to maximize revenue through in-house
commercial pools and cargo contracts.”
Results for the Six Months Ended December 31, 2020 and
2019
In comparison to the results for the second half
of 2019, the results for the second half of 2020 were impacted by
the additional acquisition and subsequent consolidation of IVS
Bulk, the sale of vessels and the effect of the pandemic on the
drybulk and tanker spot market.
Revenue was $112.1 million for the six months
ended December 31, 2020 and $163.8 million for the six months ended
December 31, 2019. Vessel revenue was $106.0 million for the
six months ended December 31, 2020 and $160.8 million for the
six months ended December 31, 2019.
In the drybulk business, handysize total revenue
and supramax/ultramax total revenue was $45.9 million and
$60.9 million, respectively, for the six months ended December
31, 2020 and $53.2 million and $83.2 million, respectively,
for the six months ended December 31, 2019. Handysize vessel
revenue and supramax/ultramax vessel revenue was $36.4 million
and $60.8 million, respectively, for the six months ended December
31, 2020 and $52.6 million, and $82.5 million, respectively,
for the six months ended December 31, 2019. The decrease in revenue
was primarily due to a decrease in spot rates in the drybulk market
affected by the declining demand for drybulk from the pandemic.
In the tankers business, our medium range
tankers and small tankers total revenue was $3.0 million and $3.1
million, respectively, for the six months ended December 31, 2020,
and $17.5 million and $6.0 million, respectively, for the six
months ended December 31, 2019. Medium range tankers and small
tankers vessel revenue was $3.0 million and $3.1 million,
respectively, for the six months ended December 31, 2020, and $17.5
million and $6.0 million, respectively for the six months ended
December 31, 2019. The decrease in total revenue was primarily a
result of the decrease in operating days due to ship sales and the
reduction in the medium range tanker spot market rates.
In the drybulk business, our combined handysize
and supramax/ultramax operating days increased to 7,170 days for
the six months ended December 31, 2020 from 6,420 days for the six
months ended December 31, 2019. Comparability of the operating days
for the six months ended December 31, 2020 and 2019 was affected by
the consolidation of the IVS Bulk vessels from February 2020. In
the tankers business our medium range tankers and small tankers
operating days decreased to 556 days for the six months ended
December 31, 2020 from 1,471 days for the six months ended December
31, 2019. A significant portion of both our drybulk and tankers
fleets continued to be exposed to the spot markets in the second
half of 2020.
Handysize TCE per day was $7,535 per day for the
six months ended December 31, 2020 and $8,551 per day for the six
months ended December 31, 2019. Supramax/ultramax TCE per day was
$10,887 per day for the six months ended December 31, 2020 and
$13,624 per day for the six months ended December 31, 2019.
Medium range tankers TCE per day was $7,960 per
day for the six months ended December 31, 2020 and $14,409 per day
for the six months ended December 31, 2019. Small tankers TCE per
day was $13,680 per day for the six months ended December 31, 2020
and $12,441 per day for the six months ended
December 31, 2019.
Cost of sales was $105.9 million for the six
months ended December 31, 2020 and $149.2 million for the six
months ended December 31, 2019.
In the drybulk business, handysize segment and
supramax/ultramax segment cost of sales was $47.3 million and $58.0
million, respectively, for the six months ended
December 31, 2020, and $51.0 million and $76.1 million,
respectively, for the six months ended December 31, 2019.
Handysize voyage expenses and supramax/ultramax voyage expenses
were $12.3 million and $17.6 million, respectively, for the
six months ended December 31, 2020, and $26.2 million and
$37.2 million, respectively, for the six months ended December
31, 2019. Handysize vessel operating costs and supramax/ultramax
vessel operating costs were $15.1 million and
$8.0 million, respectively, for the six months ended
December 31, 2020, and $11.8 million and
$2.8 million, respectively, for the six months ended December
31, 2019. Comparability of the cost of sales for the six months
ended December 31, 2020 and 2019 was affected by the consolidation
of the IVS Bulk vessels from February 2020. Handysize vessel
operating costs per day were $5,242 per day for the six months
ended December 31, 2020 and $5,101 per day for the six months ended
December 31, 2019. Supramax/ultramax vessel operating costs per day
were $5,414 per day for the six months ended December 31, 2020 and
$4,616 per day for the six months ended December 31, 2019.
The long-term charter-in costs for our
supramax/ultramax fleet was $12,003 per day during the second six
months of 2020. During this period, out of 3,971 operating days in
the supramax/ultramax segment, 63.2% of operating days were
fulfilled with owned/long-term chartered-in vessels and the
remaining 36.8% with short-term chartered-in vessels.
In the tankers business, medium range tankers
and small tankers cost of sales were $2.8 million and $2.1 million,
respectively, for the six months ended December 31, 2020 and $15.4
million and $4.5 million, respectively, for the six months ended
December 31, 2019. Medium range tankers voyage expenses and small
tankers voyage expenses were $0 and $0.7 million,
respectively, for the six months ended December 31, 2020 and
$1.6 million and $1.4 million, respectively, for the six
months ended December 31, 2019. Medium range tankers
vessel operating costs and small tankers vessel operating costs
were $2.5 million and $1.2 million, respectively, for the
six months ended December 31, 2020 and $5.0 million and
$2.2 million, respectively, for the six months ended December
31, 2019. Medium range tankers vessel operating costs per day were
$6,834 per day for the six months ended December 31, 2020 and
$6,815 per day for the six months ended
December 31, 2019. Small tankers vessel operating costs
per day were $6,391 per day for the six months ended December 31,
2020 and $6,036 per day for the six months ended December 31,
2019.
During this period, 368 of the 378 operating
days in the medium range segment were fulfilled with owned vessels.
We did not have any long-term or short-term chartered-in small
tanker vessels during this period.
Gross profit was $6.2 million for the six months
ended December 31, 2020 and $14.6 million for the six months ended
December 31, 2019.
Other operating expense was $13.9 million for
the six months ended December 31, 2020 and $18.8 million
for the six months ended December 31, 2019. The other
operating expense for the six months ended December 31, 2020 was
primarily impairment losses on vessels of $12.6 million and foreign
exchange losses of $1.3 million. The other operating expense for
the six months ended December 31, 2019 was primarily impairment
losses on vessels of $12.7 million, impairment losses on goodwill
and intangibles of $3.2 million and impairment losses on right of
use assets of $2.3 million.
Administrative expense was $12.4 million for the
six months ended December 31, 2020 and $15.1 million for the
six months ended December 31, 2019.
Share of income of joint ventures was $1.6
million for the six months ended December 31, 2020 and
$0.1 million for the six months ended December 31, 2019.
Impairment loss recognized on financial assets
was $1.8 million for the six months ended
December 31, 2020 and $0 for the six months ended
December 31, 2019.
Interest income was $0.1 million for the six
months ended December 31, 2020 and $0.8 million for the six
months ended December 31, 2019.
Interest expense was $8.3 million for the six
months ended December 31, 2020 and $6.1 million for the six months
ended December 31, 2019. The increase in the six months ended
December 31, 2020 was primarily due to the consolidation of IVS
Bulk from February 2020.
Income tax for the six months ended December 31,
2020 was $0.3 million and for the six months ended
December 31, 2019 was $0.1 million.
Loss for the six months ended December 31, 2020
was $28.8 million and for the six months ended
December 31, 2019 was $24.5 million.
Loss attributable to the owners of the Company
for the six months ended December 31, 2020 was $28.3 million and
for the six months ended December 31, 2019 was $24.5 million.
Results for the Full Years Ended
December 31, 2020 and 2019
Our results for the 12 months ended December 31,
2020 relative to the 12 months ended December 31, 2019 were
impacted by the additional acquisition and subsequent consolidation
of IVS Bulk, the sale of vessels and the effect of the pandemic on
the drybulk and tanker spot market.
Revenue was $279.2 million for the 12 months
ended December 31, 2020 and $331.0 million for the 12 months ended
December 31, 2019. Vessel revenues were $234.0 million for the 12
months ended December 31, 2020 and $308.5 million for the 12
months ended December 31, 2019.
In the drybulk business, handysize total
revenues and supramax/ultramax total revenues were
$84.5 million and $124.7 million, respectively, for the 12
months ended December 31, 2020, and $112.2 million and $155.2
million, respectively, for the 12 months ended December 31, 2019.
Handysize vessel revenues and supramax/ultramax vessel revenues
were $74.6 million and $124.4 million, respectively, for the 12
months ended December 31, 2020, and $102.8 million, and $153.9
million, respectively, for the 12 months ended December 31, 2019.
The decrease in revenue was primarily due to a decrease in spot
rates in the drybulk market affected by the declining demand for
drybulk tonnage from the pandemic.
In the tankers business, our medium range
tankers and small tankers total revenues were $52.2 million and
$15.7 million, respectively, for the 12 months ended December
31, 2020, and $45.2 million and $21.9 million, respectively,
for the 12 months ended December 31, 2019. Medium range tankers and
small tankers vessel revenues were $23.4 million and $6.6 million,
respectively, for the 12 months ended December 31, 2020, and
$37.8 million and $13.4 million, respectively, for the 12 months
ended December 31, 2019. The decrease in total revenue was
primarily a result of the decrease in operating days due to ship
sales partially offset by an increase in ship sale revenue and an
increase in tanker spot market rates for the tanker business.
In the drybulk business, our combined handysize
and supramax/ultramax operating days increased to 14,110 days in
the 12 months ended December 31, 2020 from 12,953 days for the 12
months ended December 31, 2019. Comparability of the operating days
for the 12 months ended December 31, 2020 and 2019 was affected by
the consolidation of the IVS Bulk vessels from February 2020. In
the tankers business our medium range tankers and small tankers
operating days decreased to 1,841 days for the 12 months ended
December 31, 2020 from 3,149 days for the 12 months ended December
31, 2019. Handysize and supramax/ultramax drybulk spot market rates
were generally weaker in fiscal 2020 than fiscal 2019.
On the other hand, overall the medium range tanker market was
generally stronger in fiscal 2020 than fiscal 2019.
Handysize TCE per day was $6,629 per day for the
12 months ended December 31, 2020 and $7,770 per day for the 12
months ended December 31, 2019. Supramax/ultramax TCE per day was
$10,072 per day for the 12 months ended December 31, 2020 and
$12,067 per day for the 12 months ended December 31, 2019.
Medium range tankers TCE per day was $16,339 per
day for the 12 months ended December 31, 2020 and $14,341 per day
for the 12 months ended December 31, 2019. Small tankers TCE per
day was $12,374 per day for the 12 months ended December 31, 2020
and $12,190 per day for the 12 months ended December 31, 2019.
Cost of sales was $264.1 million for the 12
months ended December 31, 2020 and $310.5 million for the 12 months
ended December 31, 2019.
In the drybulk business, handysize segment and
supramax/ultramax segment cost of sales was $90.5 million and
$121.3 million, respectively, for the 12 months ended December 31,
2020 and $111.5 million and $148.7 million, respectively, for
the 12 months ended December 31, 2019. Handysize voyage expenses
and supramax/ultramax voyage expenses were $31.0 million and $48.5
million, respectively, for the 12 months ended December 31, 2020
and $53.4 million, and $74.3 million, respectively, for the 12
months ended December 31, 2019. Handysize vessel operating costs
and supramax/ultramax vessel operating costs were $28.4 million and
$13.6 million, respectively, for the 12 months ended December 31,
2020, and $23.6 million and $4.4 million, respectively for the
12 months ended December 31, 2019. Comparability of the cost of
sales for the 12 months ended December 31, 2020 and 2019 was
affected by the consolidation of the IVS Bulk vessels from February
2020. Handysize vessel operating costs per day were $5,030 per day
for the 12 months ended December 31, 2020 and $5,040 per day for
the 12 months ended December 31, 2019. Supramax/ultramax vessel
operating costs per day were $5,073 per day for the 12 months ended
December 31, 2020 and $4,545 per day for the 12 months ended
December 31, 2019.
The long-term charter-in costs for our
supramax/ultramax fleet was $12,005 per day for the 12 months ended
December 31, 2020 and $12,650 per day for the 12 months ended
December 31, 2019.
In the tankers business, medium range tankers
and small tankers cost of sales were $43.9 million and $14.1
million, respectively, for the 12 months ended December 31, 2020,
and $39.9 million and $18.8 million, respectively, for the 12
months ended December 31, 2019. Medium range tankers voyage
expenses and small tankers voyage expenses were $0 and $1.6
million, respectively, for the 12 months ended December 31, 2020,
and $5.5 million and $2.5 million, respectively, for the 12 months
ended December 31, 2019. Medium range tankers vessel operating
costs and small tankers vessel operating costs were $7.2 million
and $2.7 million, respectively, for the 12 months ended
December 31, 2020, and $10.2 million and $5.7 million,
respectively, for the 12 months ended December 31, 2019. Medium
range tankers vessel operating costs per day were $6,723 per day
for the 12 months ended December 31, 2020 and $6,691 per day for
the 12 months ended December 31, 2019. Small tankers vessel
operating costs per day were $6,384 per day for the 12 months ended
December 31, 2020 and $6,321 per day for the 12 months
ended December 31, 2019.
The long-term charter-in costs for our long-term
medium range tanker fleet was $15,300 per day for the 12 months
ended December 31, 2020 and $15,300 per day for the 12 months ended
December 31, 2019.
Gross profit was $15.1 million for the 12 months
ended December 31, 2020 and $20.5 million for the 12 months ended
December 31, 2019.
Other operating expense was $11.7 million
recorded for the 12 months ended December 31, 2020 and
$23.6 million for the 12 months ended December 31, 2019.
Impairment losses on vessels of $16.3 million and an impairment
loss on the assets classified as held for sale of $0.6 million
offset by a foreign exchange gain of $5.2 million contributed to
the other operating expenses for the 12 months ended December 31,
2020. Impairment losses on vessels of $17.0 million, impairment
losses on goodwill and intangibles of $3.2 million and impairment
losses on right of use assets of $2.3 million contributed to the
other operating expenses for the 12 months ended December 31,
2019.
Administrative expense was $24.6 million for the
12 months ended December 31, 2020, and $28.4 million for the
12 months ended December 31, 2019.
Share of losses of joint ventures was $0.9
million for the 12 months ended December 31, 2020 and
$1.4 million for the 12 months ended December 31, 2019.
Impairment loss recognized on financial assets
was $1.8 million for the 12 months ended December 31, 2020 and $0
for the 12 months ended December 31, 2019.
Interest income was $0.6 million for the 12
months ended December 31, 2020 and $2.0 million for the 12
months ended December 31, 2019. Interest on loans to our joint
ventures decreased for the 12 months ended December 31, 2020 due to
loan repayments by joint ventures.
Interest expense for the 12 months ended
December 31, 2020 was $16.9 million and for the 12 months to
December 31, 2019 was $11.9 million. The increase in the 12
months ended December 31, 2020 was primarily due to the
consolidation of IVS Bulk from February 2020.
Income tax for the 12 months ended December 31,
2020 was $0.7 million and for the 12 months ended
December 31, 2019 was $0.7 million.
Loss for the 12 months ended December 31, 2020
was $41.1 million and for the 12 months ended
December 31, 2019 was $43.5 million.
Loss attributable to the owners of the Company
for the 12 months ended December 31, 2020 was $38.8 million and for
the 12 months ended December 31, 2019 was $43.5 million.
Net cash flows generated from operating
activities was $70.4 million for the 12 months ended
December 31, 2020 and net cash flows used in operating
activities was $55.6 million for the 12 months ended December 31,
2019. Net cash flows generated from operating activities for the 12
months ended December 31, 2020 includes capital expenditure on
vessels of $9.0 million and proceeds from vessel sales of $40.4
million. For the 12 months ended December 31, 2019, net cash flows
used in operating activities includes capital expenditure on
vessels of $106.1 million and proceeds from vessel sales of
$15.7 million.
Net cash used in investing activities was $22.6
million for the 12 months ended December 31, 2020 and net cash
generated from investing activities was $35.0 million for the 12
months ended December 31, 2019. Net cash used in investing
activities was impacted by the payment for the acquisition of a
subsidiary (net of cash acquired) of $28.3 million, payments to
related parties of $2.1 million and purchase of intangibles of $0.4
million, offset by the repayment of loans by joint ventures of $5.1
million and distributions received from joint ventures of $3.1
million in the 12 months ended December 31, 2020. Net cash
generated from investing activities in the 12 months ended December
31, 2019 was impacted by the repayment of loans from joint ventures
of $20.3 million, repayments by related parties of $7.6 million,
dividends received from joint ventures of $5.0 million and
repayment of an investment of $2.5 million.
Net cash flows used in financing activities was
$42.0 million for the 12 months ended December 31, 2020 and net
cash flows generated from financing activities was $19.4 million
for the 12 months ended December 31, 2019. Net cash flows used in
financing activities in the 12 months ended December 31, 2020 was
primarily impacted by $74.9 million repayment of existing debt and
$28.0 million repayment of lease liabilities offset by a net inflow
of $60.7 million from the incurrence of new debt. Net cash flows
generated from financing activities in the 12 months ended December
31, 2019 was primarily impacted by a net inflow of $95.8 million
from the incurrence of new debt, $45.5 million repayment of
existing debt and $29.9 million repayment of lease liabilities.
The above cash flow figures are reflected in the
summarized cash flow information shown in tabular form in a
subsequent section of this announcement under the heading
“Unaudited Summary Statement of Cash Flows”, which reflects $38.0
million of cash and cash equivalents as of December 31, 2020, which
is after deducting $12.6 million of restricted cash pledged to
certain banks to secure loans and other credit facilities. As of
December 31, 2020, we had cash and bank balances $50.6 million
including the $12.6 million of restricted cash.
Conference Call Details
Tomorrow, Thursday, February 25, 2021 at 8:00
a.m. Eastern Standard Time / 3:00 p.m. South African Standard Time
/ 9:00 p.m. Singapore Time, the Company's management will host a
conference call and webcast to discuss the earnings results.
Participants should dial into the call 10
minutes before the scheduled time using the following numbers: +1
877 553 9962 (US Toll Free Dial In), + 0808 238 0669 (UK Toll Free
Dial In), + 65 3158 5482 (Singapore Toll Free Dial In), or + 27 10
5003039 (South Africa Toll Free Dial In), + 44 (0) 2071 928592
(International Standard Dial In). Please quote “Grindrod” to the
operator.
An audio replay of the conference call will be
available until Thursday, March 4, 2021, by dialing +1 866 331 1332
(US Toll Free Dial In), +65 3158 3995 (Singapore Dial In), 0800 014
706 (South Africa Toll Free Dial In) or +44 (0)3333 009785
(International Standard Dial In). Please enter the access code
5589569.
Audio Webcast - Slides Presentation
There will be an audio webcast of the conference
call, accessible via the internet through the Grindrod Shipping
website www.grinshipping.com. Participants to the live webcast
should register on the website approximately 10 minutes prior to
the start of the webcast.
The slide presentation of the financial results
for the second half and full year ended December 31, 2020 will be
accessible in PDF format 10 minutes prior to the conference call
and webcast on the Investor Relations section of our website
located at www.grinshipping.com. Participants to the webcast can
download the PDF presentation. The conference call will take
participants through the slide presentation on the website.
About Grindrod Shipping Holdings
Ltd.
Grindrod Shipping owns and operates a
diversified fleet of owned and long-term and short-term
chartered-in drybulk vessels and product tankers. The drybulk
business, which operates under the brand “Island View Shipping”
(“IVS”) includes a fleet of 15 handysize drybulk carriers and 16
supramax/ultramax drybulk carriers. The tanker business, which
operates under the brand “Unicorn Shipping” (“Unicorn”) includes a
fleet of three medium range tankers and one small tanker. The
Company is based in Singapore, with offices in London, Durban,
Tokyo, Cape Town and Rotterdam. Grindrod Shipping is listed on
NASDAQ under the ticker “GRIN” and on the JSE under the ticker
“GSH”. Fleet Table
The following table sets forth certain summary information
regarding our fleet as of the date of this press release:
Drybulk Carriers — Owned Fleet (23 Vessels)
Vessel Name |
|
Built |
|
Country ofBuild |
|
DWT |
|
OwnershipPercentage |
|
|
Type of Employment |
Handysize –
Eco |
|
|
|
|
|
|
|
|
|
|
|
IVS Tembe(2) |
|
2016 |
|
Japan |
|
37,740 |
|
68.86 |
% |
|
IVS Commercial(6) |
IVS Sunbird(2) |
|
2015 |
|
Japan |
|
33,400 |
|
68.86 |
% |
|
IVS Handysize Pool |
IVS Thanda(2) |
|
2015 |
|
Japan |
|
37,720 |
|
68.86 |
% |
|
IVS Commercial(6) |
IVS Kestrel(2) |
|
2014 |
|
Japan |
|
32,770 |
|
68.86 |
% |
|
IVS Handysize Pool |
IVS Phinda(2) |
|
2014 |
|
Japan |
|
37,720 |
|
68.86 |
% |
|
IVS Commercial(6) |
IVS Sparrowhawk(2) |
|
2014 |
|
Japan |
|
33,420 |
|
68.86 |
% |
|
IVS Handysize Pool |
Handysize |
|
|
|
|
|
|
|
|
|
|
|
IVS Merlion |
|
2013 |
|
China |
|
32,070 |
|
100 |
% |
|
IVS Handysize Pool |
IVS Raffles |
|
2013 |
|
China |
|
32,050 |
|
100 |
% |
|
IVS Handysize Pool |
IVS Ibis |
|
2012 |
|
Japan |
|
28,240 |
|
100 |
% |
|
IVS Handysize Pool |
IVS Kinglet(7) |
|
2011 |
|
Japan |
|
33,130 |
|
100 |
% |
|
IVS Handysize Pool |
IVS Magpie(7) |
|
2011 |
|
Japan |
|
28,240 |
|
100 |
% |
|
IVS Handysize Pool |
IVS Orchard |
|
2011 |
|
China |
|
32,530 |
|
100 |
% |
|
IVS Handysize Pool |
IVS Knot(7) |
|
2010 |
|
Japan |
|
33,140 |
|
100 |
% |
|
IVS Handysize Pool |
IVS Sentosa |
|
2010 |
|
China |
|
32,700 |
|
100 |
% |
|
IVS Handysize Pool |
IVS Kingbird |
|
2007 |
|
Japan |
|
32,560 |
|
100 |
% |
|
IVS Handysize Pool |
Supramax/Ultramax –
Eco |
|
|
|
|
|
|
|
|
|
|
|
IVS Prestwick |
|
2019 |
|
Japan |
|
61,300 |
|
100 |
% |
|
IVS Supramax Pool |
IVS Okudogo |
|
2019 |
|
Japan |
|
61,330 |
|
100 |
% |
|
IVS Supramax Pool |
IVS Swinley Forest(2) |
|
2017 |
|
Japan |
|
60,490 |
|
68.86 |
% |
|
IVS Supramax Pool |
IVS Gleneagles(2) |
|
2016 |
|
Japan |
|
58,070 |
|
68.86 |
% |
|
IVS Supramax Pool |
IVS North Berwick(2) |
|
2016 |
|
Japan |
|
60,480 |
|
68.86 |
% |
|
IVS Supramax Pool |
IVS Bosch Hoek(2) |
|
2015 |
|
Japan |
|
60,270 |
|
68.86 |
% |
|
IVS Supramax Pool |
IVS Hirono(2) |
|
2015 |
|
Japan |
|
60,280 |
|
68.86 |
% |
|
IVS Supramax Pool |
IVS Wentworth(2) |
|
2015 |
|
Japan |
|
58,090 |
|
68.86 |
% |
|
IVS Supramax Pool |
Drybulk Carriers — Long-Term Charter-In Fleet (8
Vessels)
Vessel Name |
|
Built |
|
Country ofBuild |
|
DWT |
|
Charter-InPeriod |
|
Type of Employment |
Supramax/Ultramax –
Eco |
|
|
|
|
|
|
|
|
|
|
IVS Atsugi(5) |
|
2020 |
|
Japan |
|
62,660 |
|
2022-24(1) |
|
IVS Supramax Pool |
IVS Pebble Beach(5) |
|
2020 |
|
Japan |
|
62,660 |
|
2022-24(1) |
|
IVS Supramax Pool |
IVS Phoenix |
|
2019 |
|
Japan |
|
61,470 |
|
2022-24(1) |
|
IVS Supramax Pool |
IVS Hayakita(5) |
|
2016 |
|
Japan |
|
60,400 |
|
2023-26(1) |
|
IVS Supramax Pool |
IVS Windsor |
|
2016 |
|
Japan |
|
60,280 |
|
2023-26(1) |
|
IVS Supramax Pool |
IVS Pinehurst(5) |
|
2015 |
|
Philippines(3) |
|
57,810 |
|
2021-22(1) |
|
IVS Supramax Pool |
IVS Crimson Creek |
|
2014 |
|
Japan |
|
57,950 |
|
2022 |
|
IVS Supramax Pool |
IVS Naruo(5) |
|
2014 |
|
Japan |
|
60,030 |
|
2021-24(1) |
|
IVS Supramax Pool |
Tankers – Owned Fleet (4 Vessels)
Vessel Name |
|
Built |
|
Country ofBuild |
|
DWT |
|
IMODesignation |
|
OwnershipPercentage |
|
|
Type of Employment |
|
Medium
Range Tankers – Eco |
Matuku(7) |
|
2016 |
|
South Korea |
|
50,140 |
|
II,III |
|
100 |
% |
|
Bareboat Charter (Expires
2022) |
Leopard Moon |
|
2013 |
|
South Korea |
|
50,000 |
|
III |
|
100 |
% |
|
Vitol Commercial(4) |
Leopard Sun |
|
2013 |
|
South Korea |
|
50,000 |
|
III |
|
100 |
% |
|
Vitol Commercial(4) |
Small
Product Tankers |
Breede |
|
2009 |
|
China |
|
16,900 |
|
II, III |
|
100 |
% |
|
Spot Market and COA |
(1) Expiration date range represents the earliest and
latest redelivery periods due to extension options.(2) Owned
through IVS Bulk Pte. Ltd., a subsidiary in which we have a 68.86%
interest.(3) Constructed at Tsuneishi Cebu Shipyard, a
subsidiary of Tsuneishi Shipbuilding of Japan.(4) Our eco
product tankers, other than Matuku, are commercially managed by
Mansel Pte. Ltd. Mansel, an affiliate of Vitol, procures shipping
for various oil cargoes traded by Vitol.(5) Includes purchase
options for Grindrod Shipping.(6) Commercially managed by
Grindrod Shipping alongside the IVS Handysize Pool.(7) Each
of IVS Knot, IVS Kinglet, IVS Magpie and Matuku have undergone
separate financing arrangements in which we sold the vessel but
retained the right to control the use of the vessel for a period up
to 2030, 2031, 2031, and 2036 respectively, and we have an option
to acquire the vessel commencing in each case in 2021 and in the
case of the Matuku in 2022. We regard the vessels as owned since we
have retained the right to control the use of the vessel.
Segment Results of
Operations(1)
|
Six months ended December 31, |
|
Year ended December 31, |
(In thousands of U.S. dollars) |
2020 |
|
2019 |
|
2020 |
|
2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Drybulk Carriers Business |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Handysize
Segment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
$ |
45,879 |
|
|
$ |
53,249 |
|
|
$ |
84,519 |
|
|
$ |
112,232 |
|
Cost of sales |
|
(47,317 |
) |
|
|
(50,975 |
) |
|
|
(90,453 |
) |
|
|
(111,454 |
) |
Supramax/Ultramax
Segment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
$ |
60,914 |
|
|
$ |
83,192 |
|
|
$ |
124,672 |
|
|
$ |
155,155 |
|
Cost of sales |
|
(57,967 |
) |
|
|
(76,102 |
) |
|
|
(121,284 |
) |
|
|
(148,671 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tanker Business |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Medium Range Tanker
Segment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
$ |
3,023 |
|
|
$ |
17,518 |
|
|
$ |
52,226 |
|
|
$ |
45,165 |
|
Cost of sales |
|
(2,846 |
) |
|
|
(15,388 |
) |
|
|
(43,893 |
) |
|
|
(39,898 |
) |
Small Tanker
Segment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
$ |
3,129 |
|
|
$ |
5,982 |
|
|
$ |
15,730 |
|
|
$ |
21,899 |
|
Cost of sales |
|
(2,122 |
) |
|
|
(4,478 |
) |
|
|
(14,088 |
) |
|
|
(18,762 |
) |
__________________(1) Segment results of operations include the
impact of the proportionate share of joint ventures, which differs
from the statements of profit or loss in our condensed consolidated
financial statements which account for our investments in joint
ventures under the equity method.
Selected Historical and Statistical Data of Our
Operating Fleet(1)
Set forth below are selected historical and
statistical data of our operating fleet for the six months ended
December 31, 2020 and 2019, and the 12 months ended December 31,
2020 and 2019, that we believe may be useful in better
understanding our operating fleet's financial position and results
of operations. This table contains certain information regarding
TCE per day, which is a non-GAAP measure. For a discussion and
reconciliation of these measures, see "Non-GAAP Financial Measures"
at the end of this press release.
|
Six months ended December 31, |
|
Year ended December 31, |
(In thousands of U.S. dollars) |
2020 |
|
2019 |
|
2020 |
|
2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Drybulk Carriers Business |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Handysize
Segment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Calendar days(2) |
|
3,438 |
|
|
|
3,189 |
|
|
|
6,882 |
|
|
|
6,495 |
|
Available days(3) |
|
3,295 |
|
|
|
3,120 |
|
|
|
6,713 |
|
|
|
6,405 |
|
Operating days(4) |
|
3,199 |
|
|
|
3,090 |
|
|
|
6,584 |
|
|
|
6,352 |
|
Owned fleet operating days(5) |
|
2,648 |
|
|
|
2,205 |
|
|
|
5,354 |
|
|
|
4,546 |
|
Long-term charter-in days(6) |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Short-term charter-in days(7) |
|
551 |
|
|
|
885 |
|
|
|
1,230 |
|
|
|
1,806 |
|
Fleet utilization(8) |
|
97.1 |
% |
|
|
99.0 |
% |
|
|
98.1 |
% |
|
|
99.2 |
% |
TCE per day(9) |
$ |
7,535 |
|
|
$ |
8,551 |
|
|
$ |
6,629 |
|
|
$ |
7,770 |
|
Vessel operating costs per
day(10) |
$ |
5,242 |
|
|
$ |
5,101 |
|
|
$ |
5,030 |
|
|
$ |
5,040 |
|
Long-term charter-in costs per
day(11) |
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
Supramax/Ultramax
Segment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Calendar days(2) |
|
4,130 |
|
|
|
3,385 |
|
|
|
7,787 |
|
|
|
6,670 |
|
Available days(3) |
|
4,085 |
|
|
|
3,346 |
|
|
|
7,736 |
|
|
|
6,626 |
|
Operating days(4) |
|
3,971 |
|
|
|
3,330 |
|
|
|
7,526 |
|
|
|
6,601 |
|
Owned fleet operating days(5) |
|
1,376 |
|
|
|
601 |
|
|
|
2,514 |
|
|
|
959 |
|
Long-term charter-in days(6) |
|
1,134 |
|
|
|
1,245 |
|
|
|
2,261 |
|
|
|
2,351 |
|
Short-term charter-in days(7) |
|
1,460 |
|
|
|
1,484 |
|
|
|
2,751 |
|
|
|
3,291 |
|
Fleet utilization(8) |
|
97.2 |
% |
|
|
99.5 |
% |
|
|
97.3 |
% |
|
|
99.6 |
% |
TCE per day(9) |
$ |
10,887 |
|
|
$ |
13,624 |
|
|
$ |
10,072 |
|
|
$ |
12,067 |
|
Vessel operating costs per
day(10) |
$ |
5,414 |
|
|
$ |
4,616 |
|
|
$ |
5,073 |
|
|
$ |
4,545 |
|
Long-term charter-in costs per
day(11) |
$ |
12,003 |
|
|
$ |
12,610 |
|
|
$ |
12,005 |
|
|
$ |
12,650 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tankers Business |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Medium Range Tankers
Segment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Calendar days(2) |
|
378 |
|
|
|
1,104 |
|
|
|
1,434 |
|
|
|
2,253 |
|
Available days(3) |
|
378 |
|
|
|
1,104 |
|
|
|
1,434 |
|
|
|
2,253 |
|
Operating days(4) |
|
378 |
|
|
|
1,104 |
|
|
|
1,432 |
|
|
|
2,253 |
|
Owned fleet operating days(5) |
|
368 |
|
|
|
736 |
|
|
|
1,063 |
|
|
|
1,523 |
|
Long-term charter-in days(6) |
|
10 |
|
|
|
368 |
|
|
|
369 |
|
|
|
730 |
|
Short-term charter-in days(7) |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Fleet utilization(8) |
|
100.0 |
% |
|
|
100.0 |
% |
|
|
99.9 |
% |
|
|
100.0 |
% |
TCE per day(9) |
$ |
7,960 |
|
|
$ |
14,409 |
|
|
$ |
16,339 |
|
|
$ |
14,341 |
|
Vessel operating costs per
day(10) |
$ |
6,834 |
|
|
$ |
6,815 |
|
|
$ |
6,723 |
|
|
$ |
6,691 |
|
Long-term charter-in costs per
day(11) |
$ |
15,300 |
|
|
$ |
15,300 |
|
|
$ |
15,300 |
|
|
$ |
15,300 |
|
Small Tanker
Segment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Calendar days(2) |
|
184 |
|
|
|
368 |
|
|
|
425 |
|
|
|
908 |
|
Available days(3) |
|
184 |
|
|
|
368 |
|
|
|
425 |
|
|
|
897 |
|
Operating days(4) |
|
178 |
|
|
|
367 |
|
|
|
409 |
|
|
|
896 |
|
Owned fleet operating days(5) |
|
178 |
|
|
|
367 |
|
|
|
409 |
|
|
|
896 |
|
Long-term charter-in days(6) |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Short-term charter-in days(7) |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Fleet utilization(8) |
|
96.7 |
% |
|
|
99.7 |
% |
|
|
96.2 |
% |
|
|
99.9 |
% |
TCE per day(9) |
$ |
13,680 |
|
|
$ |
12,441 |
|
|
$ |
12,374 |
|
|
$ |
12,190 |
|
Vessel operating costs per
day(10) |
$ |
6,391 |
|
|
$ |
6,036 |
|
|
$ |
6,384 |
|
|
$ |
6,321 |
|
Long-term charter-in costs per
day(11) |
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
__________________(1) Segment results
of operations include the proportionate share of joint ventures,
which differs from the statements of profit or loss in our
condensed consolidated financial statements which account for our
investments in joint ventures under the equity
method.(2) Calendar days: total calendar days the
vessels were in our possession for the relevant
period.(3) Available days: total number of calendar days
a vessel is in our possession for the relevant period after
subtracting off-hire days for scheduled drydocking and special
surveys. We use available days to measure the number of days in a
relevant period during which vessels should be available for
generating revenue.(4) Operating days: the number of
available days in the relevant period a vessel is controlled by us
after subtracting the aggregate number of days that the vessel is
off-hire due to a reason other than scheduled drydocking and
special surveys, including unforeseen circumstances. We use
operating days to measure the aggregate number of days in a
relevant period during which vessels are actually available to
generate revenue.(5) Owned fleet operating days: the
number of operating days in which our owned fleet is operating for
the relevant period.(6) Long-term charter-in days: the
number of operating days in which our long-term charter-in fleet is
operating for the relevant period. We regard chartered-in vessels
as long-term charters if the period of the charter that we
initially commit to is 12 months or more. Once we have
included such chartered-in vessels in our fleet, we will continue
to regard them as part of our fleet until the end of their
chartered-in period, including any period that the charter has been
extended under an option, even if at a given time the remaining
period of their charter may be less than
12 months.(7) Short-term charter-in days: the
number of operating days for which we have chartered-in third party
vessels for durations of less than one year for the relevant
period.(8) Fleet utilization: the percentage of time
that vessels are available for generating revenue, determined by
dividing the number of operating days during a relevant period by
the number of available days during that period. We use fleet
utilization to measure a company’s efficiency in technically
managing its vessels.(9) TCE per day: vessel revenue
less voyage expenses during a relevant period divided by the number
of operating days during the period. The number of operating days
used to calculate TCE revenue per day includes the proportionate
share of our joint ventures’ operating days and includes charter-in
days. See “Non-GAAP Financial Measures” at the end of this press
release for a discussion of TCE revenue and a reconciliation of TCE
revenue to revenue.(10) Vessel operating costs per day:
Vessel operating costs per day represents vessel operating costs
divided by the number of calendar days for owned vessels. The
vessel operating costs and the number of calendar days used to
calculate vessel operating costs per day includes the proportionate
share of our joint ventures’ calendar day and excludes charter-in
costs and charter-in days. See “Non-GAAP Financial Measures” at the
end of this press release for a discussion of vessel operating
costs per day.(11) Long-term charter-in costs per day:
Charter costs relating to long-term chartered-in vessels divided by
long-term charter-in days for the relevant period. See “Non-GAAP
Financial Measures” at the end of this press release for a
discussion of long-term charter-in costs and its reconciliation to
Adjusted charter hire costs.
The average long-term charter-in costs per day
for the supramax/ultramax fleet for the first half of 2021 is
expected to be approximately $12,278 per day (the calculation
excludes index- linked charter contracts). We no longer have any
long-term chartered-in medium range tankers in our fleet.
Comparability of the operating days was affected
by the consolidation of the IVS Bulk vessels from February
2020.
Unaudited Condensed Consolidated
Statement of Financial Position
(In thousands of U.S. dollars) |
|
31 December2020 |
|
|
31 December2019 |
|
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets |
|
|
|
|
|
|
Cash and bank balances |
|
41,261 |
|
|
35,553 |
|
Trade receivables |
|
7,928 |
|
|
13,173 |
|
Contract assets |
|
900 |
|
|
3,844 |
|
Other receivables and
prepayments |
|
18,740 |
|
|
16,951 |
|
Due from joint ventures |
|
1 |
|
|
3,855 |
|
Loans to joint ventures |
|
798 |
|
|
1,037 |
|
Derivative financial
instruments |
|
458 |
|
|
173 |
|
Inventories |
|
8,700 |
|
|
12,236 |
|
|
|
78,786 |
|
|
86,822 |
|
Assets classified as held for
sale |
|
3,825 |
|
|
4,677 |
|
Total current assets |
|
82,611 |
|
|
91,499 |
|
|
|
|
|
|
|
|
Non-current
assets |
|
|
|
|
|
|
Restricted cash |
|
9,304 |
|
|
9,611 |
|
Loans to joint ventures |
|
- |
|
|
2,627 |
|
Ships, property, plant and
equipment |
|
475,303 |
|
|
305,197 |
|
Right-of-use assets |
|
49,062 |
|
|
55,238 |
|
Interest in joint
ventures |
|
166 |
|
|
52,475 |
|
Intangible assets |
|
405 |
|
|
177 |
|
Goodwill |
|
960 |
|
|
944 |
|
Other investments |
|
3,150 |
|
|
- |
|
Deferred tax assets |
|
1,138 |
|
|
1,299 |
|
Total non-current assets |
|
539,488 |
|
|
427,568 |
|
|
|
|
|
|
|
|
Total
assets |
|
622,099 |
|
|
519,067 |
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities |
|
|
|
|
|
|
Trade and other payables |
|
27,355 |
|
|
28,327 |
|
Contract liabilities |
|
5,094 |
|
|
4,080 |
|
Due to related parties |
|
- |
|
|
4,796 |
|
Lease liabilities |
|
28,120 |
|
|
24,300 |
|
Bank loans and other
borrowings |
|
53,394 |
|
|
20,696 |
|
Provisions |
|
80 |
|
|
959 |
|
Income tax payable |
|
3,350 |
|
|
3,096 |
|
|
|
117,393 |
|
|
86,254 |
|
Liabilities directly
associated with assets classified as held for sale |
|
508 |
|
|
538 |
|
Total current liabilities |
|
117,901 |
|
|
86,792 |
|
|
|
|
|
|
|
|
Unaudited Condensed Consolidated Statement of Financial
Position (cont’d)
(In thousands of U.S. dollars) |
|
31 December2020 |
|
|
31 December2019 |
|
|
|
|
|
|
|
|
Non-current
liabilities |
|
|
|
|
|
|
Trade and other payables |
|
198 |
|
|
221 |
|
Lease liabilities |
|
23,124 |
|
|
33,646 |
|
Bank loans and other
borrowings |
|
225,038 |
|
|
144,548 |
|
Retirement benefit
obligation |
|
1,819 |
|
|
1,922 |
|
Total non-current
liabilities |
|
250,179 |
|
|
180,337 |
|
|
|
|
|
|
|
|
Capital and
reserves |
|
|
|
|
|
|
Share capital |
|
320,683 |
|
|
320,683 |
|
Other equity and reserves |
|
(23,078 |
) |
|
(18,176 |
) |
Accumulated losses |
|
(85,368 |
) |
|
(50,569 |
) |
Equity attributable to owners
of the Company |
|
212,237 |
|
|
251,938 |
|
Non-controlling interests |
|
41,782 |
|
|
- |
|
Total equity |
|
254,019 |
|
|
251,938 |
|
|
|
|
|
|
|
|
Total equity and
liabilities |
|
622,099 |
|
|
519,067 |
|
|
|
|
|
|
|
|
Unaudited Condensed Consolidated
Statement of Profit or Loss
|
|
Six months ended December
31, |
|
|
Twelve months ended December
31, |
|
(In thousands of U.S. dollars, other than per share data) |
|
2020 |
|
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
Revenue |
$ |
112,072 |
|
|
|
163,826 |
|
|
$ |
279,217 |
|
|
$ |
331,046 |
|
Cost of
sales |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Voyage expenses |
|
(31,030 |
) |
|
|
(75,062 |
) |
|
|
(83,441 |
) |
|
|
(149,444 |
) |
Vessel operating costs |
|
(25,225 |
) |
|
|
(17,140 |
) |
|
|
(47,477 |
) |
|
|
(33,889 |
) |
Charter hire costs |
|
(18,687 |
) |
|
|
(30,919 |
) |
|
|
(38,220 |
) |
|
|
(61,668 |
) |
Depreciation of ships, drydocking and plant and equipment– owned
assets |
|
(12,116 |
) |
|
|
(9,033 |
) |
|
|
(23,849 |
) |
|
|
(17,529 |
) |
Depreciation of ships and ship equipment – right-of-use assets |
|
(13,077 |
) |
|
|
(16,628 |
) |
|
|
(26,413 |
) |
|
|
(30,449 |
) |
Other expenses |
|
(375 |
) |
|
|
(345 |
) |
|
|
(980 |
) |
|
|
(697 |
) |
Cost of ship sale |
|
(5,369 |
) |
|
|
(105 |
) |
|
|
(43,731 |
) |
|
|
(16,844 |
) |
Gross
profit |
|
6,193 |
|
|
|
14,594 |
|
|
|
15,106 |
|
|
|
20,526 |
|
Other operating expense |
|
(13,907 |
) |
|
|
(18,757 |
) |
|
|
(11,734 |
) |
|
|
(23,559 |
) |
Administrative expense |
|
(12,388 |
) |
|
|
(15,099 |
) |
|
|
(24,608 |
) |
|
|
(28,412 |
) |
Share of income (losses) of
joint ventures |
|
1,593 |
|
|
|
118 |
|
|
|
(945 |
) |
|
|
(1,420 |
) |
Impairment loss recognized on
financial assets |
|
(1,823 |
) |
|
|
- |
|
|
|
(1,823 |
) |
|
|
- |
|
Interest income |
|
116 |
|
|
|
764 |
|
|
|
565 |
|
|
|
1,979 |
|
Interest expense |
|
(8,304 |
) |
|
|
(6,101 |
) |
|
|
(16,938 |
) |
|
|
(11,916 |
) |
Loss before
taxation |
|
(28,520 |
) |
|
|
(24,481 |
) |
|
|
(40,377 |
) |
|
|
(42,802 |
) |
Income tax |
|
(269 |
) |
|
|
(52 |
) |
|
|
(723 |
) |
|
|
(685 |
) |
Loss for the
period |
|
(28,789 |
) |
|
|
(24,533 |
) |
|
|
(41,100 |
) |
|
|
(43,487 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss for the period
attributable to: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Owners of the Company |
|
(28,300 |
) |
|
|
(24,533 |
) |
|
|
(38,795 |
) |
|
|
(43,487 |
) |
Non-controlling interests |
|
(489 |
) |
|
|
- |
|
|
|
(2,305 |
) |
|
|
- |
|
|
|
(28,789 |
) |
|
|
(24,533 |
) |
|
|
(41,100 |
) |
|
|
(43,487 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss per share attributable to
owners of the Company: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of
shares on which the per share figures have been calculated |
|
19,006,858 |
|
|
|
18,982,168 |
|
|
|
18,966,414 |
|
|
|
19,022,665 |
|
- Basic and diluted |
$ |
(1.49 |
) |
|
$ |
(1.29 |
) |
|
$ |
(2.05 |
) |
|
$ |
(2.29 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited Summary Statement of Cash Flows
The following table presents an unaudited summary statement of
cash flows for each of the years ended December 31, 2020
and 2019:
|
|
Year ended December 31, |
|
(In thousands of U.S. dollars) |
|
2020 |
|
|
2019 |
|
|
|
|
|
|
|
|
Net cash flows generated from (used in) operating activities |
|
$ |
70,384 |
|
|
$ |
(55,587 |
) |
Net cash (used in) generated
from investing activities |
|
|
(22,559 |
) |
|
|
35,025 |
|
Net cash flows (used in)
generated from financing activities |
|
|
(41,983 |
) |
|
|
19,373 |
|
Net increase
(decrease) in cash and cash equivalents |
|
|
5,842 |
|
|
|
(1,189 |
) |
Cash and cash equivalents,
beginning of period |
|
|
32,386 |
|
|
|
33,498 |
|
Effect of exchange rate
changes on the balance of cash held in foreign currencies |
|
|
(286 |
) |
|
|
77 |
|
Cash and cash
equivalents, end of period |
|
|
37,942 |
|
|
|
32,386 |
|
Non-GAAP Financial Measures
The financial information included in this press
release includes certain ‘‘non-GAAP financial measures’’ as such
term is defined in SEC regulations governing the use of non-GAAP
financial measures. Generally, a non-GAAP financial measure is a
numerical measure of a company’s operating performance, financial
position or cash flows that excludes or includes amounts that are
included in, or excluded from, the most directly comparable measure
calculated and presented in accordance with IFRS. For example,
non-GAAP financial measures may exclude the impact of certain
unique and/or non-operating items such as acquisitions,
divestitures, restructuring charges, large write-offs or items
outside of management’s control. Management believes that the
non-GAAP financial measures described below provide investors and
analysts useful insight into our financial position and operating
performance.
TCE Revenue and TCE per day.
TCE revenue is defined as vessel revenue less
voyage expenses. Such TCE revenue, divided by the number of our
operating days during the period, is TCE per day. Vessel revenue
and voyage expenses as reported for our operating segments include
a proportionate share of vessel revenue and voyage expenses
attributable to our joint ventures based on our proportionate
ownership of the joint ventures for the period the joint venture
existed during the relevant period. The number of operating days
used to calculate TCE per day also includes the proportionate share
of our joint ventures’ operating days for the period the joint
venture existed during the relevant period and also includes
charter-in days.
TCE per day is a common 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 have to cover voyage expenses and are
generally not expressed in per-day amounts while charter hire rates
for vessels on time charters do not cover voyage expenses and
generally are expressed in per day amounts.
Below is a reconciliation from TCE revenue to
revenue for the six month periods to December 31, 2020 and
2019:
|
|
Six months ended December 31, |
|
|
2020 |
|
|
2019 |
(In thousands of U.S. dollars) |
|
Revenue |
|
|
VoyageExpenses |
|
|
TCERevenue |
|
|
Revenue |
|
|
VoyageExpenses |
|
|
TCERevenue |
Vessel Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Handysize |
|
|
36,368 |
|
|
(12,264 |
) |
|
24,104 |
|
|
52,577 |
|
|
(26,153 |
) |
|
26,424 |
Supramax/ultramax |
|
|
60,787 |
|
|
(17,556 |
) |
|
43,231 |
|
|
82,536 |
|
|
(37,168 |
) |
|
45,368 |
Medium range tankers |
|
|
3,023 |
|
|
(14 |
) |
|
3,009 |
|
|
17,519 |
|
|
(1,611 |
) |
|
15,908 |
Small tankers |
|
|
3,129 |
|
|
(694 |
) |
|
2,435 |
|
|
5,982 |
|
|
(1,416 |
) |
|
4,566 |
Other drybulk carriers |
|
|
100 |
|
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
Other tankers |
|
|
2,649 |
|
|
|
|
|
|
|
|
2,613 |
|
|
|
|
|
|
Ship sale revenue |
|
|
5,178 |
|
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
Other revenue |
|
|
854 |
|
|
|
|
|
|
|
|
2,993 |
|
|
|
|
|
|
Adjustments* |
|
|
(16 |
) |
|
|
|
|
|
|
|
(394 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
|
112,072 |
|
|
|
|
|
|
|
|
163,826 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Below is a reconciliation from TCE revenue to revenue for the 12
month periods to December 31, 2020 and 2019:
|
|
Twelve months ended December
31, |
|
|
2020 |
|
|
2019 |
(In thousands of U.S. dollars) |
|
Revenue |
|
|
VoyageExpenses |
|
|
TCERevenue |
|
|
Revenue |
|
|
VoyageExpenses |
|
|
TCERevenue |
Vessel Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Handysize |
|
|
74,641 |
|
|
(30,995 |
) |
|
43,646 |
|
|
102,805 |
|
|
(53,449 |
) |
|
49,356 |
Supramax/ultramax |
|
|
124,352 |
|
|
(48,547 |
) |
|
75,805 |
|
|
153,937 |
|
|
(74,286 |
) |
|
79,651 |
Medium range tankers |
|
|
23,412 |
|
|
(15 |
) |
|
23,397 |
|
|
37,813 |
|
|
(5,502 |
) |
|
32,311 |
Small tankers |
|
|
6,647 |
|
|
(1,586 |
) |
|
5,061 |
|
|
13,419 |
|
|
(2,497 |
) |
|
10,922 |
Other drybulk carriers |
|
|
222 |
|
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
Other tankers |
|
|
5,241 |
|
|
|
|
|
|
|
|
5,182 |
|
|
|
|
|
|
Ship sale revenue |
|
|
43,075 |
|
|
|
|
|
|
|
|
16,546 |
|
|
|
|
|
|
Other revenue |
|
|
2,105 |
|
|
|
|
|
|
|
|
5,989 |
|
|
|
|
|
|
Adjustments* |
|
|
(478 |
) |
|
|
|
|
|
|
|
(4,645 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
|
279,217 |
|
|
|
|
|
|
|
|
331,046 |
|
|
|
|
|
|
__________________* Vessel revenue earned
and voyage expenses incurred by the joint ventures are included
within the operating segment information on a proportionate
consolidated basis. Accordingly, joint ventures’ proportionate
financial information are adjusted out to reconcile to the
unaudited condensed consolidated financial statements.
Vessel operating costs per day.
Vessel operating costs per day represents vessel
operating costs divided by the number of calendar days for owned
vessels during the period. The vessel operating costs and the
number of calendar days used to calculate vessel operating costs
per day includes the proportionate share of our joint ventures’
vessel operating costs and calendar days for the period the joint
venture existed during the relevant period and excludes charter-in
costs and charter-in days.
Vessel operating costs per day is a non-GAAP
performance measure commonly used in the shipping industry to
provide an understanding of the daily technical management costs
relating to the running of owned vessels.
Long-term charter-in costs and Long-term
charter-in costs per day.
Long-term charter-in costs is defined as the
charter costs relating to chartered-in vessels included in our
Fleet from time to time, which are vessels for which the period of
the charter that we initially commit to is 12 months or more, even
if at a given time the remaining period of their charter may be
less than 12 months (“long-term charter-in vessels”). Such
long-term charter-in costs, divided by the number of operating days
for the relevant vessels during the period, is long-term charter-in
costs per day.
From January 1, 2019, charter hire costs in the
statement of profit and loss only includes charter costs that meet
the definition of short-term leases in terms of IFRS 16 which, due
to practical expedients allowed under IFRS 16, for the period from
January 1, 2019 to December 31, 2019 includes charter costs
relating to some but not all of our long-term charter-in vessels,
with the charter costs relating to the remainder of our long-term
charter-in vessels presented as lease payments on ships.
Accordingly, charter hire costs and lease payments on ships
together comprise “adjusted charter hire costs”.
Long-term charter-in costs and long-term
charter-in costs per day are non-GAAP performance measures used
primarily to provide an understanding of the total costs and total
costs per day relating to the charter-in of the company’s long-term
chartered-in vessels.
Below is a reconciliation from long-term
charter-in costs to Adjusted charter hire costs for the six month
periods to December 31, 2020 and 2019.
|
|
Six months ended December 31, |
|
|
2020 |
(In thousands of U.S. dollars) |
|
Charter hirecosts |
|
|
Leasepayments
onShips |
|
|
Adjustedcharter
hirecosts |
|
|
Long-termcharter-incosts |
|
|
Short-termcharter-incosts |
|
|
Adjustedcharter
hirecosts |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Handysize |
|
3,976 |
|
|
- |
|
|
3,976 |
|
|
- |
|
|
3,976 |
|
|
3,976 |
Supramax/ultramax |
|
14,558 |
|
|
14,344 |
|
|
28,902 |
|
|
13,612 |
|
|
15,290 |
|
|
28,902 |
Medium range tankers |
|
153 |
|
|
- |
|
|
153 |
|
|
153 |
|
|
- |
|
|
153 |
Small tankers |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
Others |
|
- |
|
|
- |
|
|
- |
|
|
|
|
|
|
|
|
- |
Adjustments(*) |
|
- |
|
|
- |
|
|
- |
|
|
|
|
|
|
|
|
- |
|
|
18,687 |
|
|
14,344 |
|
|
33,031 |
|
|
|
|
|
|
|
|
33,031 |
|
|
Six months ended December 31, |
|
|
2019 |
(In thousands of U.S. dollars) |
|
Charter hirecosts |
|
|
Leasepayments
onShips |
|
|
Adjustedcharter
hirecosts |
|
|
Long-termcharter-incosts |
|
|
Short-termcharter-incosts |
|
|
Adjustedcharter
hirecosts |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Handysize |
|
8,009 |
|
|
- |
|
|
8,009 |
|
|
- |
|
|
8,009 |
|
|
8,009 |
Supramax/ultramax |
|
20,064 |
|
|
15,015 |
|
|
35,079 |
|
|
15,697 |
|
|
19,382 |
|
|
35,079 |
Medium range tankers |
|
2,812 |
|
|
2,816 |
|
|
5,628 |
|
|
5,628 |
|
|
- |
|
|
5,628 |
Small tankers |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
Others |
|
- |
|
|
- |
|
|
- |
|
|
|
|
|
|
|
|
- |
Adjustments(*) |
|
34 |
|
|
- |
|
|
34 |
|
|
|
|
|
|
|
|
34 |
|
|
30,919 |
|
|
17,831 |
|
|
48,750 |
|
|
|
|
|
|
|
|
48,750 |
__________________* Charter
hire costs, Lease payments on Ships, Long-term charter-in costs and
Short-term charter-in costs incurred by the joint ventures are
included within the operating segment information on a
proportionate consolidation basis. Accordingly, joint ventures’
proportionate financial information are adjusted out to reconcile
to the unaudited condensed consolidated financial statements.
Below is a reconciliation from long-term charter-in costs to
Adjusted charter hire costs for the 12 month periods to December
31, 2020 and 2019.
|
|
Twelve months ended December
31, |
|
|
2020 |
(In thousands of U.S. dollars) |
|
Charter hirecosts |
|
|
Leasepayments
onShips |
|
|
Adjustedcharter
hirecosts |
|
|
Long-termcharter-incosts |
|
|
Short-termcharter-incosts |
|
|
Adjustedcharter
hirecosts |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Handysize |
|
8,827 |
|
|
- |
|
|
8,827 |
|
|
- |
|
|
8,827 |
|
|
8,827 |
Supramax/ultramax |
|
25,541 |
|
|
27,388 |
|
|
52,929 |
|
|
27,143 |
|
|
25,786 |
|
|
52,929 |
Medium range tankers |
|
3,851 |
|
|
1,795 |
|
|
5,646 |
|
|
5,646 |
|
|
- |
|
|
5,646 |
Small tankers |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
Others |
|
- |
|
|
- |
|
|
- |
|
|
|
|
|
|
|
|
- |
Adjustments(*) |
|
- |
|
|
- |
|
|
- |
|
|
|
|
|
|
|
|
- |
|
|
38,219 |
|
|
29,183 |
|
|
67,402 |
|
|
|
|
|
|
|
|
67,402 |
|
|
Twelve months ended December
31, |
|
|
2019 |
(In thousands of U.S. dollars) |
|
Charter hirecosts |
|
|
Leasepayments
onShips |
|
|
Adjustedcharter
hirecosts |
|
|
Long-termcharter-incosts |
|
|
Short-termcharter-incosts |
|
|
Adjustedcharter
hirecosts |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Handysize |
|
15,162 |
|
|
|
- |
|
|
15,162 |
|
|
|
- |
|
|
15,162 |
|
|
15,162 |
|
Supramax/ultramax |
|
41,393 |
|
|
|
26,953 |
|
|
68,346 |
|
|
|
29,738 |
|
|
38,608 |
|
|
68,346 |
|
Medium range tankers |
|
5,581 |
|
|
|
5,585 |
|
|
11,166 |
|
|
|
11,166 |
|
|
- |
|
|
11,166 |
|
Small tankers |
|
- |
|
|
|
- |
|
|
- |
|
|
|
- |
|
|
- |
|
|
- |
|
Others |
|
- |
|
|
|
- |
|
|
- |
|
|
|
|
|
|
|
|
|
- |
|
Adjustments(*) |
|
(468 |
) |
|
|
- |
|
|
(468 |
) |
|
|
|
|
|
|
|
|
(468 |
) |
|
|
61,668 |
|
|
|
32,538 |
|
|
94,206 |
|
|
|
|
|
|
|
|
|
94,206 |
|
__________________* Charter
hire costs, Lease payments on Ships, Long-term charter-in costs and
Short-term charter-in costs incurred by the joint ventures are
included within the operating segment information on a
proportionate consolidation basis. Accordingly, joint ventures’
proportionate financial information are adjusted out to reconcile
to the unaudited condensed consolidated financial statements.
EBITDA and Adjusted EBITDA.
EBITDA is defined as earnings before income tax,
interest income, interest expense, share of income/(losses) of
joint ventures and depreciation and amortization. For periods
commencing January 1, 2019, interest expense and depreciation and
amortization include amounts relating to leases and classified, as
appropriate, as interest expense or depreciation – right of use
assets under the application of IFRS 16. Adjusted EBITDA is EBITDA
adjusted to exclude the items set forth in the table below, which
represent certain non-recurring, non-operating or other items that
we believe are not indicative of the ongoing performance of our
core operations.
EBITDA and Adjusted EBITDA are used by analysts
in the shipping industry as common performance measures to compare
results across peers. EBITDA and Adjusted EBITDA are not items
recognized by IFRS, and should not be considered in isolation or
used as alternatives to loss for the period or any other indicator
of our operating performance.
Our presentation of EBITDA and Adjusted EBITDA
is intended to supplement investors’ understanding of our operating
performance by providing information regarding our ongoing
performance that exclude items we believe do not directly affect
our core operations and enhancing the comparability of our ongoing
performance across periods. Our management considers EBITDA and
Adjusted EBITDA to be useful to investors because such performance
measures provide information regarding the profitability of our
core operations and facilitate comparison of our operating
performance to the operating performance of our peers.
Additionally, our management uses EBITDA and Adjusted EBITDA as
measures when reviewing our operating performance. While we believe
these measures are useful to investors, the definitions of EBITDA
and Adjusted EBITDA used by us may not be comparable to similar
measures used by other companies.
The table below presents the reconciliation
between loss for the period to EBITDA and Adjusted EBITDA for the
six month period ended December 31, 2020 and the comparative period
ended December 31, 2019:
|
|
Six months endedDecember 31, |
|
|
Twelve months endedDecember
31, |
|
(In thousands of U.S. dollars) |
|
2020 |
|
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss for the period |
$ |
(28,789 |
) |
|
$ |
(24,533 |
) |
|
$ |
(41,100 |
) |
|
$ |
(43,487 |
) |
Adjusted for: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax |
|
269 |
|
|
|
52 |
|
|
|
723 |
|
|
|
685 |
|
Interest income |
|
(116 |
) |
|
|
(764 |
) |
|
|
(565 |
) |
|
|
(1,979 |
) |
Interest expense |
|
8,304 |
|
|
|
6,101 |
|
|
|
16,938 |
|
|
|
11,916 |
|
Impairment loss recognized on financial assets |
|
1,823 |
|
|
|
- |
|
|
|
1,823 |
|
|
|
- |
|
Share of income (losses) of joint ventures |
|
(1,593 |
) |
|
|
(118 |
) |
|
|
945 |
|
|
|
1,420 |
|
Depreciation and amortization |
|
25,829 |
|
|
|
26,153 |
|
|
|
51,549 |
|
|
|
48,763 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA |
|
5,727 |
|
|
|
6,891 |
|
|
|
30,313 |
|
|
|
17,318 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted for |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairment loss recognized on ships |
|
12,620 |
|
|
|
12,692 |
|
|
|
16,282 |
|
|
|
16,995 |
|
Impairment loss recognized on right-of-use assets |
|
- |
|
|
|
2,250 |
|
|
|
- |
|
|
|
2,250 |
|
Impairment loss recognized on goodwill and intangibles |
|
- |
|
|
|
3,179 |
|
|
|
- |
|
|
|
3,179 |
|
Impairment loss recognized on assets in disposal group |
|
- |
|
|
|
- |
|
|
|
576 |
|
|
|
- |
|
Impairment loss recognized on office equipment, furniture and
fittings and motor vehicles |
|
138 |
|
|
|
- |
|
|
|
138 |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADJUSTED
EBITDA |
|
18,485 |
|
|
|
25,012 |
|
|
|
47,309 |
|
|
|
39,742 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Headline Loss and Headline Loss Per Share.
The Johannesburg Stock Exchange, or JSE,
requires that we calculate and publicly disclose Headline Loss Per
Share and Diluted Headline Loss Per Share. Headline Loss Per Share
is calculated using net income which has been determined based on
IFRS. Accordingly, this may differ to the Headline Loss Per Share
calculation of other companies listed on the JSE because such
companies may report their financial results under a different
financial reporting framework such as U.S. GAAP.
Headline Loss for the period represents Loss for
the period attributable to owners of the Company adjusted for the
re-measurements that are more closely aligned to the operating or
trading results as set forth below, and Headline Loss Per Share
represents this figure divided by the weighted average number of
ordinary shares outstanding for the period.
The table below presents a reconciliation
between Loss for the period attributable to owners of the Company
to Headline Loss for the six month period ended December 31, 2020
and 2019, and the 12 month period ended December 31, 2020 and
2019:
|
|
Six months endedDecember 31, |
|
|
Twelve months endedDecember
31, |
|
(In thousands of U.S. dollars, other
than per share data) |
|
2020 |
|
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation between loss
for the period attributable to owners of the Company and headline
loss: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss for the period attributable to owners of the
Company |
$ |
(28,300 |
) |
|
$ |
(24,533 |
) |
|
$ |
(38,795 |
) |
|
$ |
(43,487 |
) |
Adjusted for: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Impairment loss recognized on ships |
|
12,620 |
|
|
|
12,692 |
|
|
|
16,282 |
|
|
|
16,995 |
|
- Impairment loss recognized on right-of-use assets |
|
- |
|
|
|
2,250 |
|
|
|
- |
|
|
|
2,250 |
|
- Impairment loss recognized on goodwill and intangibles |
|
- |
|
|
|
3,179 |
|
|
|
- |
|
|
|
3,179 |
|
- Gain on disposals of plant and equipment |
|
- |
|
|
|
(193 |
) |
|
|
- |
|
|
|
- |
|
- Impairment loss recognized on assets in disposal group |
|
- |
|
|
|
- |
|
|
|
576 |
|
|
|
- |
|
- Impairment loss recognized on office equipment, furniture and
fittings and motor vehicles |
|
138 |
|
|
|
- |
|
|
|
138 |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Headline Loss |
|
(15,542 |
) |
|
|
(6,605 |
) |
|
|
(21,799 |
) |
|
|
(21,063 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of shares on which the per share figures have been
calculated |
|
19,006,858 |
|
|
|
18,982,168 |
|
|
|
18,966,414 |
|
|
|
19,022,665 |
|
Basic and diluted loss per share |
$ |
(1.49 |
) |
|
$ |
(1.29 |
) |
|
$ |
(2.05 |
) |
|
$ |
(2.29 |
) |
Basic and diluted headline loss per share |
$ |
(0.82 |
) |
|
$ |
(0.35 |
) |
|
$ |
(1.15 |
) |
|
$ |
(1.11 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Forward-Looking Statements
This press release contains forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act 1995 with respect to Grindrod Shipping’s financial
condition, results of operations, cash flows, business strategies,
operating efficiencies, competitive position, growth opportunities,
plans and objectives of management, and other matters. These
forward looking statements, including, among others, those relating
to our future business prospects, revenues and income, are
necessarily estimates and involve a number of risks and
uncertainties that could cause actual results to differ materially
from those suggested by the forward-looking statements.
Accordingly, these forward-looking statements should be considered
in light of various important factors, including those set forth
below and in our other filings with the SEC. Words such as “may,”
“expects,” “intends,” “plans,” “believes,” “anticipates,” “hopes,”
“estimates,” and variations of such words and similar expressions
are intended to identify forward-looking statements. These
forward-looking statements are based on the information available
to, and the expectations and assumptions deemed reasonable by
Grindrod Shipping at the time these statements were made. Although
Grindrod Shipping believes that the expectations reflected in such
forward-looking statements are reasonable, no assurance can be
given that such expectations will prove to have been correct. These
statements involve known and unknown risks and are based upon a
number of assumptions and estimates which are inherently subject to
significant uncertainties and contingencies, many of which are
beyond the control of Grindrod Shipping. Actual results may differ
materially from those expressed or implied by such forward-looking
statements. Important factors that could cause actual results to
differ materially from estimates or projections contained in the
forward-looking statements include, without limitation, Grindrod
Shipping’s future operating or financial results; the strength of
world economies, including, in particular, in China and the rest of
the Asia-Pacific region; the effects of the COVID-19 pandemic on
our operations and the demand and trading patterns for both the
drybulk and product tanker markets, and the duration of the
effects; cyclicality of the drybulk and tanker markets, including
general drybulk and tanker shipping market conditions and trends,
including fluctuations in charter hire rates and vessel values;
changes in supply and demand in the drybulk and tanker shipping
industries, including the market for Grindrod Shipping’s vessels;
changes in the value of Grindrod Shipping’s vessels; changes in
Grindrod Shipping’s business strategy and expected capital spending
or operating expenses, including drydocking, surveys, upgrades and
insurance costs; competition within the drybulk and tanker
industries; seasonal fluctuations within the drybulk and tanker
industries; Grindrod Shipping’s ability to employ its vessels in
the spot market and its ability to enter into time charters after
its current charters expire; general economic conditions and
conditions in the oil and coal industries; Grindrod Shipping’s
ability to satisfy the technical, health, safety and compliance
standards of its customers, especially major oil companies and oil
producers; the failure of counterparties to our contracts to fully
perform their obligations with Grindrod Shipping; Grindrod
Shipping’s ability to execute its growth strategy; international
political conditions including additional tariffs imposed by China
and the United States;; potential disruption of shipping routes due
to weather, accidents, political events, natural disasters or other
catastrophic events; vessel breakdowns; corruption, piracy,
military conflicts, political instability and terrorism in
locations where we may operate; fluctuations in interest rates and
foreign exchange rates and the uncertainty surrounding the
continued existence of the London Interbank Offered Rate, or LIBOR;
changes in the costs associated with owning and operating Grindrod
Shipping’s vessels; changes in, and Grindrod Shipping’s compliance
with, governmental, tax, environmental, health and safety
regulations including the International Maritime Organization, or
IMO 2020, regulations limiting sulfur content in fuels; potential
liability from pending or future litigation; Grindrod Shipping’s
ability to procure or have access to financing, its liquidity and
the adequacy of cash flows for its operation; the continued
borrowing availability under Grindrod Shipping’s debt agreements
and compliance with the covenants contained therein; Grindrod
Shipping’s ability to fund future capital expenditures and
investments in the construction, acquisition and refurbishment of
its vessels; Grindrod Shipping’s dependence on key personnel;
Grindrod Shipping’s expectations regarding the availability of
vessel acquisitions and its ability to buy and sell vessels and to
charter-in vessels as planned or at prices we deem satisfactory;
adequacy of Grindrod Shipping’s insurance coverage; effects of new
technological innovation and advances in vessel design; Grindrod
Shipping’s ability to realize the benefits of the separation from
Grindrod Limited; Grindrod Shipping’s ability to operate as an
independent entity; and the other factors set out in “Item 3. Key
Information-Risk Factors” in our Annual Report on Form 20-F for the
year ended December 31, 2019 filed with the Securities and Exchange
Commission on June 5, 2020. Grindrod Shipping undertakes no
obligation to update publicly or release any revisions to these
forward-looking statements to reflect events or circumstances after
the date of this press release or to reflect the occurrence of
unanticipated events except as required by law.
|
|
Company
Contact:Martyn Wade / Stephen GriffithsCEO / CFOGrindrod
Shipping Holdings Ltd.200 Cantonment Road, #03-01
SouthpointSingapore, 089763Email:
ir@grindrodshipping.com Website:
www.grinshipping.com |
Investor Relations /
Media Contact: Nicolas Bornozis / Daniela GuerreroCapital
Link, Inc. 230 Park Avenue, Suite 1536 New York, N.Y. 10169 Tel.:
(212) 661-7566 Fax: (212) 661-7526 Email:
grindrod@capitallink.com |
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