Grindrod Shipping Holdings Ltd. (NASDAQ: GRIN) (JSE: GSH)
(“Grindrod Shipping” or “Company” or “we” or “us” or “our”), a
global provider of maritime transportation services predominantly
in the drybulk sector, today announced its earnings results for the
three months ended March 31, 2021, the three months ended June 30,
2021 and the six months ended June 30, 2021.
Financial Highlights for the First
Quarter of 2021 Ended March 31,
2021(1)
- Revenues of $71.8 million
- Gross profit of $13.8 million
- Profit for the period of $3.3
million
- Profit for the period attributable
to owners of the Company of $2.4 million, or $0.12 per ordinary
share
- Adjusted EBITDA of $21.8
million(2)
- Handysize and supramax/ultramax TCE
per day of $12,053 and $13,259, respectively(2)
(1) In view of commencing with earnings
reporting on a quarterly basis, we have included the financial
highlights for the First Quarter ended March 31, 2021 in this press
release to provide additional detail on our First Half results.
Financial Highlights for the Second
Quarter of 2021 Ended June 30, 2021
- Revenues of $159.4 million
- Gross profit of $34.3 million
- Profit for the period of $24.2 million
- Profit for the period attributable to owners of the Company of
$19.8 million, or $1.02 per ordinary share
- Adjusted EBITDA of $40.7 million(2)
- Handysize and supramax/ultramax TCE per day of $18,104 and
$21,916, respectively(2)
Financial Highlights for the First Half
of 2021, Ended June 30, 2021
- Revenues of $231.2 million
- Gross profit of $48.2 million
- Profit for the period of $27.6 million
- Profit for the period attributable to owners of the Company of
$22.1 million or $1.15 per ordinary share
- Adjusted EBITDA of $62.5 million(2)
- Handysize and supramax/ultramax TCE per day of $15,285 and
$17,606, respectively(2)
- Period end cash and cash equivalents of $58.1 million and
restricted cash of $9.3 million
(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 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.
Operational Highlights for the First
Quarter, Second Quarter and First Half of 2021
- We sold the 2009-built small
products tanker Breede for a gross price of $6.8 million with
delivery to the buyers on April 14, 2021.
- We sold the 2013-built medium range
tankers Leopard Moon and Leopard Sun for a total gross price of
$42.8 million with deliveries to the buyers on
April 12, 2021 and April 20, 2021.
- On May 07, 2021, the United Kingdom
Upper Tribunal found in our favor with respect to a previously
disclosed tax dispute with Her Majesty’s Revenue and Customs
(“HMRC”). HMRC decided not to appeal the decision which prompted
the release of $2.4 million in tax provisions that had been
recorded in respect of such dispute in prior periods.
- On May 19, 2021 the Company repaid
the approximately $25.8 million remaining outstanding amount on the
senior secured credit facility with an affiliate of Bain Capital
Credit (“Bain”).
- On June 28, 2021 the Company
announced its transition to quarterly financial reporting from
semi-annual reporting.
- During the second quarter, we
repurchased a combined total of 33,467 ordinary shares in the open
market on NASDAQ and the JSE at an average price of $8.46 per
share.
Implementation of New Dividend and
Capital Return Policy
Commencing from the quarter ending September 30,
2021, the Company intends, subject to operating needs and other
circumstances, to return approximately 30% of its adjusted net
income (adjusted for extraordinary items) to shareholders through a
combination of quarterly dividends and/or share repurchases. The
Company intends to pay a minimum quarterly base dividend of $0.03
per share and an additional variable component, that will consist
of additional dividends and/or share repurchases. We expect that
the return to shareholders will be primarily in the form of
dividends, though the Company retains the right to adjust the
allocation to maximize value to shareholders based on market
conditions, share price levels, share liquidity, and other related
matters.
The timing and amount of dividend payments will
be determined by our board of directors and could be affected by
various factors, including our financial results and earnings,
restrictions in our debt agreements, required capital expenditures,
and the provisions of Singapore law affecting the payment of
dividends to shareholders and other factors. Our board of directors
may review and amend our dividend policy from time to time and we
may stop paying dividends at any time and cannot assure you that we
will pay any dividends, including any minimum quarterly base
dividend amount, in the future or of the amount of any such
dividends. For the avoidance of doubt, the payment of any dividends
is not guaranteed, and the payment of dividend is subject at all
times to the requirements and restrictions set out in the Company’s
Constitution and Singapore Companies Act (Cap. 50).
Recent Developments
- On July 21, 2021, the Group entered
into an agreement to acquire the remaining shares in IVS Bulk held
by Bain for a total purchase consideration of $46.3 million,
comprising of $37.2 million for the ordinary equity shares and $9.1
million for the preference shares. The purchase price is based on
appraised values as of May 13, 2021 and the IVS Bulk balance sheet
as of April 30, 2021. The agreement with Bain is subject to
customary closing conditions with closing to occur no later than
September 30, 2021.
- On August 17, 2021, Grindrod
Shipping entered into an agreement to purchase the 2019
Japanese-built ultramax bulk carrier the IVS Phoenix, which we
currently charter-in from its owners for a price of US$23.5
million, which we believe reflects a significantly reduced price
relative to management’s estimate of the fair market value of the
vessel due to the early termination of the prevailing charter
agreement. The vessel was originally chartered-in for a minimum
period of three years from delivery with two one-year extension
options and no purchase options. In order to finance the
acquisition, we have simultaneously entered into a financing
arrangement with a separate Japanese owner on attractive terms for
a gross amount of $25.0 million. As part of the financing
arrangement, the Group will bareboat charter the vessel back for a
period of up to 15 years and has the right, but not the obligation,
to acquire the vessel after the first two years of the charter. The
financing would be on similar terms to those completed for IVS
Knot, IVS Kinglet and IVS Magpie during 2019 and Matuku in 2020.
The transactions are expected to close by the end of September 2021
while the vessel will remain chartered-in on the original terms
until closing.
- As of August 16, 2021, we have
contracted the following TCE per day for the third quarter of 2021
(1)(2):
- Handysize: approximately 1,326 operating days at an average TCE
per day of approximately $25,205
- Supramax/ultramax: approximately 1,686 operating days at an
average TCE per day of approximately $30,666
(1) 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.(2) 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.
CEO Commentary
Martyn Wade, the Chief Executive Officer of
Grindrod Shipping, commented:
“Grindrod Shipping took full advantage of the
improving market conditions in the drybulk sector during the first
and the second quarters of 2021 to deliver strong results. In
addition, we were able to reduce our debt by approximately $66.9
million while concurrently increasing our total cash and cash
equivalents by approximately $20.1 million through strong free cash
flow from our drybulk business and the timely sales of nearly all
of our remaining product tankers. Our healthy balance sheet and
strong industry fundamentals now position us well as we seek to
both reward our shareholders and demonstrate the benefits of the
differentiated commercial strategy of Grindrod
Shipping.
To that end, we are pleased to announce the
initiation of a quarterly dividend and capital return policy which
coincides with our transition to quarterly financial reporting.
Commencing with the third quarter, the Company intends to return
approximately 30% of its adjusted net income to shareholders
through a combination of quarterly dividends and/or share
repurchases. The Company intends, subject to operating needs and
other circumstances, to pay a minimum quarterly base dividend of
$0.03 per share and an additional variable component, that will
consist of additional dividends and/or share repurchases. This
variable policy aims to create a sustainable dividend throughout
the market cycles while enabling our shareholders to share in the
market strength.
On the commercial side, the dynamic approach of
the Company that includes opportunistically chartering in vessels
on both long- and short-term time charters in order to service our
cargo contracts is bearing significant fruit. Our long-term
charter-in vessels are contracted at what we believe to be well
below current charter market rates and most contain favorable
extension options and/or fixed price purchase options that are now
notably below the current market value. This allows us the option
to pursue growth at prices considerably below prevailing levels in
the secondhand and charter markets. In addition, we have been able
to complement our core fleet with a number of short-term charter-in
vessels on which we hold a series of charter extension options at
commercially favorable levels. Together with our owned fleet of
predominantly Japanese-built vessels, all of these options
demonstrate the flexibility of our operating model.
Finally, as we work to close the recently
announced agreement to acquire the remainder of our IVS Bulk
subsidiary, expected to occur in the coming month, we look forward
to achieving the final key step in our corporate transformation
since listing. Upon closing, we will have completed the acquisition
or sale of all JV vessels originally held and sold all our spot
trading product tankers, all while positioning the Company to take
full advantage of the current strong drybulk market.”
Results for the Three Months Ended June
30, 2021 and 2020
In comparison to the results for the second
quarter of 2020, the results for the second quarter of 2021 were
significantly impacted by higher TCE per day rates achieved in our
handysize and supramax/ultramax drybulk carrier segments,
reflecting the stronger spot markets in these segments. Our tanker
segment results have been affected by the sale of vessels only days
into the reporting period as part of our strategy to divest from
the tanker business to focus on the drybulk segments. Vessel
operating costs per day were higher in the handysize and
supramax/ultramax drybulk carrier segments for the second quarter
of 2021 in comparison to the second quarter of 2020 due to
increased crew repatriation costs partly as a result of COVID-19
travel restrictions, quarantine requirements and related costs.
Cost of sales increased due to higher charter hire costs incurred
for our short-term chartered-in vessels as drybulk spot charter
rates increased in the second quarter of 2021. In addition, cost of
ship sales increased as two medium range tankers and a small tanker
were sold in the second quarter of 2021 compared to the sale of two
medium range tankers with lower cost prices in the second quarter
of 2020. Administrative expenses increased in the second quarter of
2021 as compared to the second quarter of 2020 due to increased
staff costs. Other operating income (expense) improved in the
second quarter of 2021 as compared to the second quarter of 2020
due to reversal of ship impairments and reversal of right-of-use
asset impairments partially offset by impairments to net disposal
group and goodwill in the second quarter of 2021 compared to ship
impairments recorded in the second quarter of 2020. The income tax
benefit increased in the second quarter of 2021 as compared to the
second quarter of 2020 due to the reversal of a provision for a
tax-related legal case which was decided in our favor.
Revenue was $159.4 million for the three months
ended June 30, 2021 and $84.7 million for the three months ended
June 30, 2020. Vessel revenue was $109.6 million for the three
months ended June 30, 2021 and $55.6 million for the three
months ended June 30, 2020.
In the drybulk business, handysize total revenue
and supramax/ultramax total revenue was $37.4 million and $71.0
million, respectively, for the three months ended June 30, 2021,
and $21.6 million and $21.9 million, respectively, for the three
months ended June 30, 2020. Handysize vessel revenue and
supramax/ultramax vessel revenue was $37.2 million and $71.0
million, respectively, for the three months ended June 30, 2021,
and $21.5 million and $21.9 million, respectively, for the three
months ended June 30, 2020.
In the tankers business, our medium range
tankers and small tankers total revenues were $42.5 million and
$6.9 million, respectively, for the three months ended June 30,
2021, and $38.8 million and $1.0 million, respectively, for the
three months ended June 30, 2020. Medium range tankers and small
tankers vessel revenues were $0 million and $0 million,
respectively, for the three months ended June 30, 2021 and $10.0
million and $1.0 million, respectively for the three months ended
June 30, 2020. Total revenue was affected by the sale of tankers as
we divested from the tanker business.
Handysize TCE per day was $18,104 per day for
the three months ended June 30, 2021 and $5,852 per day for the
three months ended June 30, 2020. Supramax/ultramax TCE per day was
to $21,916 per day for the three months ended June 30, 2021 and
$7,676 per day for the three months ended June 30, 2020.
The remaining small tankers and two medium range
tankers were sold early in the period and therefore generated no
revenue during the period. The TCE calculations for the second
quarter 2021 are therefore not directly comparable to the second
quarter 2020.
Cost of sales was $125.1 million for the three
months ended June 30, 2021 and $82.8 million for the three months
ended June 30, 2020.
In the drybulk business, our handysize segment
and supramax/ultramax segment cost of sales was $23.1 million and
$51.2 million, respectively, for the three months ended June 30,
2021 and $23.6 million and $24.3 million, respectively, for the
three months ended June 30, 2020.
Handysize voyage expenses and supramax/ultramax
voyage expenses were $7.7 million and $17.5 million, respectively,
for the three months ended June 30, 2021 and $10.4 million and $9.3
million, respectively, for the three months ended June 30, 2020.
Handysize vessel operating costs and supramax/ultramax vessel
operating costs were $8.4 million and $3.7 million, respectively,
for the three months ended June 30, 2021, and $7.1 million and $3.4
million, respectively, for the three months ended June 30, 2020.
Handysize vessel operating costs per day were $6,130 per day for
the three months ended June 30, 2021 and $4,735 per day for the
three months ended June 30, 2020. Supramax/ultramax vessel
operating costs per day were $5,116 per day for the three months
ended June 30, 2021 and $4,688 per day for the three months ended
June 30, 2020.
The long-term charter-in costs per day for our
supramax/ultramax fleet was $12,867 per day during the three months
ended June 30, 2021. During this period, out of 2,442 operating
days in the supramax/ultramax segment, 57.5% were fulfilled with
owned/long-term chartered-in vessels and the remaining 42.5% with
short-term chartered-in vessels.
In the tankers business, medium range tankers
and small tankers cost of sales were $43.7 million and $7.3
million, respectively, for the three months ended June 30, 2021 and
$34.3 million and $1.0 million, respectively, for the three months
ended June 30, 2020.
Medium range tankers voyage expenses and small
tankers voyage expenses were $0 million and $0 million,
respectively, for the three months ended June 30, 2021 and $0
million and $0.3 million, respectively, for the three months ended
June 30, 2020. Medium range tankers vessel operating costs and
small tankers vessel operating costs were $0.2 million and $0
million, respectively, for the three months ended June 30, 2021 and
$2.1 million and $0.6 million, respectively, for the three months
ended June 30, 2020. Medium range tankers vessel operating costs
per day were $7,394 per day for the three months ended June 30,
2021 and $6,402 per day for the three months ended June 30, 2020.
Small tankers vessel operating costs per day were $1,400 per day
for the three months ended June 30, 2021 and $6,056 per day for the
three months ended June 30, 2020. Gross profit
was $34.3 million for the three months ended June 30, 2021 and $1.8
million for the three months ended June 30, 2020.
Other operating income (expense) was operating
income of $0.2 million for the three months ended June 30, 2021 and
operating expense of $4.1 million for the three months ended June
30, 2020.
Administrative expenses were $8.8 million for
the three months ended June 30, 2021 and $5.8 million for the three
months ended June 30, 2020.
Share of losses of joint ventures was $0 million
for the three months ended June 30, 2021 and a loss of $1.3 million
for the three months ended June 30, 2020.
Interest income was $0 million for the three
months ended June 30, 2021 and $0.1 million for the three months
ended June 30, 2020.
Interest expense was $4.2 million for the three
months ended June 30, 2021 and $4.4 million for the three months
ended June 30, 2020.
Income tax benefit was $2.6 million for the
three months ended June 30, 2021 and was $0.2 million for the three
months ended June 30, 2020.
Profit for the three months ended June 30, 2021
was $24.2 million compared to a loss of $13.3 million for the three
months ended June 30, 2020. Profit attributable to owners of the
Company for the three months ended June 30, 2021 was $19.8 million
compared to a loss of $11.8 million for the three months ended June
30, 2020.
Results for the Six Months Ended June
30, 2021 and 2020
In comparison to the results for the first half
of 2020, the results for the first half of 2021 were impacted by
higher TCE per day rates achieved in our handysize and
supramax/ultramax drybulk carrier segments, reflecting the stronger
spot markets in these segments, and lower TCE per day rates
achieved in our medium range tanker and small tanker segments,
reflecting the weaker spot market in this segment. Cost of sales
increased due to the higher short-term charter hire costs as
drybulk spot charter rates increased in the first half of 2021 as
well as increased cost of ship sales as two medium range tankers
and a small tanker were sold in the first half of 2021 compared to
the sale of two medium range tankers and one small tanker with
lower cost prices in the first half of 2020. These increases were
partially offset by the decrease in drybulk voyage expenses
primarily due to a reduced number of drybulk freight voyages in
favor of charter contracts that resulted in a decrease to fuel and
ports costs. Vessel operating costs per day were higher in the
handysize and supramax/ultramax drybulk carrier segments for the
first half of 2021 in comparison to the first half of 2020 due to
increased crew repatriation costs partly as a result of COVID-19
travel restrictions, quarantine requirements and related costs.
Administrative expenses increased in the first half of 2021 as
compared to the first half of 2020 due to increased staff costs.
Other operating income improved in the first half of 2021 as
compared to the first half of 2020 due to the reversals of
impairments on ships and the reversal of impairments on
right-of-use assets which were partly offset by higher impairments
on goodwill and intangibles and the disposal group. The income tax
benefit increased in the first half of 2021 as compared to the
first half of 2020 due to the reversal of a provision for a
tax-related legal case which was decided in our favor.
Revenue was $231.2 million for the six months
ended June 30, 2021 and $167.1 million for the six months ended
June 30, 2020. Vessel revenue was $181.0 million for the six
months ended June 30, 2021 and $128.0 million for the six
months ended June 30, 2020.
In the drybulk business, handysize total revenue
and supramax/ultramax total revenue was $61.1 million and $114.5
million, respectively, for the six months ended June 30, 2021, and
$38.6 million and $63.8 million, respectively, for the six months
ended June 30, 2020. Handysize vessel revenue and supramax/ultramax
vessel revenue was $60.8 million and $114.4 million, respectively,
for the six months ended June 30, 2021, and $38.3 million and $63.6
million, respectively, for the six months ended June 30, 2020.
In the tankers business, our medium range
tankers and small tankers total revenues were $44.4 million and
$8.2 million, respectively, for the six months ended June 30, 2021,
and $49.2 million and $12.6 million, respectively, for the six
months ended June 30, 2020. Medium range tankers and small tankers
vessel revenues were $1.8 million and $1.3 million, respectively,
for the six months ended June 30, 2021 and $20.4 million and $3.5
million, respectively for the six months ended June 30, 2020.
Handysize TCE per day was $15,285 per day for
the six months ended June 30, 2021 and $5,773 per day for the six
months ended June 30, 2020. Supramax/ultramax TCE per day was to
$17,606 per day for the six months ended June 30, 2021 and $9,163
per day for the six months ended June 30, 2020.
Medium range tankers TCE per day was $8,268 per
day for the six months ended June 30, 2021 and $19,343 per day for
the six months ended June 30, 2020. Small tankers TCE per day was
$8,648 per day for the six months ended June 30, 2021 and $11,368
per day for the six months ended June 30, 2020.
Cost of sales was $183.1 million for the six
months ended June 30, 2021 and $158.2 million for the six months
ended June 30, 2020.
In the drybulk business, our handysize segment
and supramax/ultramax segment cost of sales was $41.6 million and
$88.9 million, respectively, for the six months ended June 30, 2021
and $43.1 million and $63.3 million, respectively, for the six
months ended June 30, 2020.
Handysize voyage expenses and supramax/ultramax
voyage expenses were $14.1 million and $28.8 million, respectively,
for the six months ended June 30, 2021 and $18.7 million and $31.0
million, respectively, for the six months ended June 30, 2020.
Handysize vessel operating costs and supramax/ultramax vessel
operating costs were $15.2 million and $7.5 million, respectively,
for the six months ended June 30, 2021, and $13.3 million and $5.7
million, respectively, for the six months ended June 30, 2020.
Handysize vessel operating costs per day were $5,602 per day for
the six months ended June 30, 2021 and $4,808 per day for the six
months ended June 30, 2020. Supramax/ultramax vessel operating
costs per day were $5,212 per day for the six months ended June 30,
2021 and $4,666 per day for the six months ended June 30, 2020.
The long-term charter-in costs per day for our
supramax/ultramax fleet was $12,611 per day during the first six
months of 2021. During this period, out of 4,864 operating days in
the supramax/ultramax segment, 57.5% were fulfilled with
owned/long-term chartered-in vessels and the remaining 42.5% with
short-term chartered-in vessels.
In the tankers business, medium range tankers
and small tankers cost of sales were $44.8 million and $8.3
million, respectively, for the six months ended June 30, 2021 and
$41.0 million and $12.0 million, respectively, for the six months
ended June 30, 2020.
Medium range tankers voyage expenses and small
tankers voyage expenses were $0 million and $0.4 million,
respectively, for the six months ended June 30, 2021 and $0 million
and $0.9 million, respectively, for the six months ended June 30,
2020. Medium range tankers vessel operating costs and small tankers
vessel operating costs were $1.4 million and $0.6 million,
respectively, for the six months ended June 30, 2021 and $4.6
million and $1.5 million, respectively, for the six months ended
June 30, 2020. Medium range tankers vessel operating costs per day
were $6,634 per day for the six months ended June 30, 2021 and
$6,664 per day for the six months ended June 30, 2020. Small
tankers vessel operating costs per day were $5,895 per day for the
six months ended June 30, 2021 and $6,377 per day for the six
months ended June 30, 2020.
Gross profit was $48.2 million for the six
months ended June 30, 2021 and $8.9 million for the six months
ended June 30, 2020.
Other operating income was $0.4 million for the
six months ended June 30, 2021 and $2.2 million for the six months
ended June 30, 2020.
Administrative expenses were $15.7 million for
the six months ended June 30, 2021 and $12.2 million for the six
months ended June 30, 2020.
Share of losses of joint ventures was $0 million
for the six months ended June 30, 2021 and a loss of $2.5 million
for the six months ended June 30, 2020.
Interest income was $0.1 million for the six
months ended June 30, 2021 and $0.4 million for the six months
ended June 30, 2020.
Interest expense was $7.7 million for the six
months ended June 30, 2021 and $8.6 million for the six months
ended June 30, 2020.
Income tax benefit (expense) was a benefit of
$2.4 million for the six months ended June 30, 2021 and an expense
of $0.5 million for the six months ended June 30, 2020.
Profit for the six months ended June 30, 2021
was $27.6 million and a loss of $12.3 million for the six months
ended June 30, 2020. Profit attributable to owners of the Company
for the six months ended June 30, 2021 was $22.1 million and a loss
of $10.5 million for the six months ended June 30, 2020.
Net cash flows generated from operating
activities was an inflow of $102.1 million for the six months ended
June 30, 2021 and an inflow of $48.8 million for the six months
ended June 30, 2020. Net cash generated from (used in) investing
activities was an inflow of $0.2 million for the six months ended
June 30, 2021 and an outflow of $25.6 million for the six months
ended June 30, 2020. Net cash flows used in financing activities
was an outflow of $82.3 million for the six months ended June 30,
2021 and an outflow of $15.2 million for the six months ended June
30, 2020.
As of June 30, 2021, we had cash and equivalents
of $58.1 million and restricted cash of $9.3 million.
Conference Call details
Tomorrow, Thursday, August 19, 2021, at 8:00
a.m. Eastern Daylight Time/ 2:00 p.m. South African Standard Time/
8:00 p.m. Singapore Time, the Company's management will host a
conference call and webcast to discuss the earnings results.
Conference Call details: 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 Dial In),
or +27 10 5003039 (South Africa Dial In), +44 (0) 2071 928592
(International Standard Dial In). Please quote “Grindrod” to the
operator.
A telephonic replay of the conference and
accompanying slides will be available following the completion of
the call and will remain available until Thursday, August 26, 2021.
To listen to the archived audio file, visit our website
www.grinshipping.com and click on Notices & Events.
Audio Webcast / Slides Presentation
details
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 first half ended June 30, 2021 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
Grindrod Shipping owns and operates a
diversified fleet of owned, long-term and short-term chartered-in
drybulk vessels predominantly in the handysize and
supramax/ultramax segments. The drybulk business, which operates
under the brand “Island View Shipping” (“IVS”) includes a core
fleet of 31 vessels consisting of 15 handysize drybulk carriers and
16 supramax/ultramax drybulk carriers. The company also owns one
medium range tanker on bareboat charter. 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 |
|
2016 |
|
Japan |
|
|
37,740 |
|
|
|
68.86 |
% |
(1) |
IVS Commercial(2) |
| IVS Sunbird |
|
2015 |
|
Japan |
|
|
33,400 |
|
|
|
68.86 |
% |
(1) |
IVS Handysize Pool |
| IVS Thanda |
|
2015 |
|
Japan |
|
|
37,720 |
|
|
|
68.86 |
% |
(1) |
IVS Commercial(2) |
| IVS Kestrel |
|
2014 |
|
Japan |
|
|
32,770 |
|
|
|
68.86 |
% |
(1) |
IVS Handysize Pool |
| IVS Phinda |
|
2014 |
|
Japan |
|
|
37,720 |
|
|
|
68.86 |
% |
(1) |
IVS Commercial(2) |
| IVS Sparrowhawk |
|
2014 |
|
Japan |
|
|
33,420 |
|
|
|
68.86 |
% |
(1) |
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(3) |
|
2011 |
|
Japan |
|
|
33,130 |
|
|
|
100 |
% |
|
IVS Handysize Pool |
| IVS Magpie(3) |
|
2011 |
|
Japan |
|
|
28,240 |
|
|
|
100 |
% |
|
IVS Handysize Pool |
| IVS Orchard |
|
2011 |
|
China |
|
|
32,530 |
|
|
|
100 |
% |
|
IVS Handysize Pool |
| IVS Knot(3) |
|
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 |
|
2017 |
|
Japan |
|
|
60,490 |
|
|
|
68.86 |
% |
(1) |
IVS Supramax Pool |
| IVS Gleneagles |
|
2016 |
|
Japan |
|
|
58,070 |
|
|
|
68.86 |
% |
(1) |
IVS Supramax Pool |
| IVS North Berwick |
|
2016 |
|
Japan |
|
|
60,480 |
|
|
|
68.86 |
% |
(1) |
IVS Supramax Pool |
| IVS Bosch Hoek |
|
2015 |
|
Japan |
|
|
60,270 |
|
|
|
68.86 |
% |
(1) |
IVS Supramax Pool |
| IVS Hirono |
|
2015 |
|
Japan |
|
|
60,280 |
|
|
|
68.86 |
% |
(1) |
IVS Supramax Pool |
| IVS Wentworth |
|
2015 |
|
Japan |
|
|
58,090 |
|
|
|
68.86 |
% |
(1) |
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(4) |
|
2020 |
|
Japan |
|
|
62,660 |
|
|
2022-24(5) |
|
IVS Supramax Pool |
| IVS Pebble Beach(4) |
|
2020 |
|
Japan |
|
|
62,660 |
|
|
2022-24(5) |
|
IVS Supramax Pool |
| IVS Phoenix(6) |
|
2019 |
|
Japan |
|
|
61,470 |
|
|
2022-24(5) |
|
IVS Supramax Pool |
| IVS Hayakita(4) |
|
2016 |
|
Japan |
|
|
60,400 |
|
|
2023-26(5) |
|
IVS Supramax Pool |
| IVS Windsor |
|
2016 |
|
Japan |
|
|
60,280 |
|
|
2023-26(5) |
|
IVS Supramax Pool |
| IVS Pinehurst(4) |
|
2015 |
|
Philippines(7) |
|
|
57,810 |
|
|
2021-22(5) |
|
IVS Supramax Pool |
| IVS Crimson Creek |
|
2014 |
|
Japan |
|
|
57,950 |
|
|
2022 |
|
IVS Supramax Pool |
| IVS Naruo(4) |
|
2014 |
|
Japan |
|
|
60,030 |
|
|
2022-24(5) |
|
IVS Supramax Pool |
Tankers – Owned Fleet (1 Vessel)
|
Vessel Name |
|
Built |
|
Country ofBuild |
|
DWT |
|
|
IMODesignation |
|
OwnershipPercentage |
|
Type of Employment |
| Medium
Range Tankers – Eco |
|
Matuku(3) |
|
2016 |
|
South Korea |
|
|
50,140 |
|
|
II,III |
|
|
100 |
% |
Bareboat Charter (Expires 2022) |
| (1) |
Owned through IVS Bulk Pte. Ltd., a subsidiary in which we have a
68.86% interest. The acquisition of the remaining interest in IVS
Bulk is expected to be completed no later than September 30,
2021. |
|
(2) |
Commercially managed by Grindrod Shipping alongside the IVS
Handysize Pool. |
|
(3) |
IVS Knot, IVS Kinglet, IVS Magpie and Matuku have each undergone
separate financing arrangements in which we sold these vessels but
retained the right to control the use of these vessels for a period
up to 2030, 2031, 2031 and 2035, respectively, and we have an
option to acquire IVS Knot, IVS Kinglet and IVS Magpie commencing
in 2021 and the Matuku in 2022. We regard the vessels as owned
since we have retained the right to control the use of the
vessels. |
|
(4) |
Includes purchase options for Grindrod Shipping. |
|
(5) |
Expiration date range represents the earliest and latest
re-delivery periods due to extension options. |
|
(6) |
We have agreed to acquire the vessel from its owners with closing
currently estimated to occur by September 30, 2021. Until closing,
the vessel will remain chartered-in under the original contract
terms. |
|
(7) |
Constructed at Tsuneishi Cebu Shipyard, a subsidiary of Tsuneishi
Shipbuilding of Japan. |
Unaudited Segment
Information(1)
| |
|
Three months endedMarch 31, |
|
|
Three months endedJune
30, |
|
|
Six months endedJune 30, |
|
(In thousands of U.S. dollars) |
|
2021 |
|
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Drybulk Carriers Business |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Handysize
Segment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Revenue |
$ |
23,702 |
|
|
$ |
17,037 |
|
|
$ |
37,364 |
|
|
$ |
21,603 |
|
|
$ |
61,066 |
|
|
$ |
38,640 |
|
|
| Cost of sales |
|
(18,463 |
) |
|
|
(19,576 |
) |
|
|
(23,123 |
) |
|
|
(23,560 |
) |
|
|
(41,586 |
) |
|
|
(43,136 |
) |
|
| Supramax/Ultramax
Segment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Revenue |
$ |
43,428 |
|
|
$ |
41,853 |
|
|
$ |
71,039 |
|
|
$ |
21,905 |
|
|
$ |
114,467 |
|
|
$ |
63,758 |
|
|
| Cost of sales |
|
(37,712 |
) |
|
|
(39,044 |
) |
|
|
(51,229 |
) |
|
|
(24,273 |
) |
|
|
(88,941 |
) |
|
|
(63,317 |
) |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Tanker Business |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Medium Range Tanker
Segment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Revenue |
$ |
1,862 |
|
|
$ |
10,421 |
|
|
$ |
42,548 |
|
|
$ |
38,782 |
|
|
$ |
44,410 |
|
|
$ |
49,203 |
|
|
| Cost of sales |
|
(1,184 |
) |
|
|
(6,743 |
) |
|
|
(43,661 |
) |
|
|
(34,304 |
) |
|
|
(44,845 |
) |
|
|
(41,047 |
) |
|
| Small Tanker
Segment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Revenue |
$ |
1,295 |
|
|
$ |
11,610 |
|
|
$ |
6,855 |
|
|
$ |
991 |
|
|
$ |
8,150 |
|
|
$ |
12,601 |
|
|
| Cost of sales |
|
(1,040 |
) |
|
|
(10,931 |
) |
|
|
(7,257 |
) |
|
|
(1,035 |
) |
|
|
(8,297 |
) |
|
|
(11,966 |
) |
|
|
(1 |
) |
Segment information includes the proportionate share of joint
ventures, which differs from the consolidated statements of profit
or loss in our unaudited interim 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 three months ended
March 31, 2021 and 2020, the three months ended June 30, 2021
and 2020 and the six months ended June 30, 2021 and
June 30, 2020 that we believe may be useful in better
understanding our operating fleet’s financial position and results
of operations(1). This table contains certain information regarding
TCE per day, vessel operating costs per day and long-term
charter-in costs per day which are non-GAAP measures. For a
discussion of certain of these measures, see “Non-GAAP Financial
Measures” at the end of this press release.
| |
Three
months ended March 31, |
|
Three
months endedJune 30, |
Six months ended June 30, |
|
(In thousands of U.S. dollars) |
2021 |
|
2020 |
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Drybulk Carriers Business |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Handysize
Segment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Calendar days(2) |
|
1,496 |
|
|
|
1,527 |
|
|
|
|
1,662 |
|
|
|
1,917 |
|
|
|
3,158 |
|
|
|
3,444 |
|
| Available days(3) |
|
1,440 |
|
|
|
1,515 |
|
|
|
|
1,662 |
|
|
|
1,903 |
|
|
|
3,102 |
|
|
|
3,418 |
|
| Operating days(4) |
|
1,422 |
|
|
|
1,491 |
|
|
|
|
1,630 |
|
|
|
1,894 |
|
|
|
3,052 |
|
|
|
3,385 |
|
|
Owned fleet operating days(5) |
|
1,276 |
|
|
|
1,227 |
|
|
|
|
1,333 |
|
|
|
1,479 |
|
|
|
2,609 |
|
|
|
2,706 |
|
|
Long-term charter-in days(6) |
|
- |
|
|
|
- |
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
Short-term charter-in days(7) |
|
146 |
|
|
|
264 |
|
|
|
|
297 |
|
|
|
415 |
|
|
|
443 |
|
|
|
679 |
|
| Fleet utilization(8) |
|
98.8 |
% |
|
|
98.4 |
% |
|
|
|
98.1 |
% |
|
|
99.5 |
% |
|
|
98.4 |
% |
|
|
99.0 |
% |
| TCE per day(9) |
$ |
12,053 |
|
|
$ |
5,673 |
|
|
|
$ |
18,104 |
|
|
$ |
5,852 |
|
|
$ |
15,285 |
|
|
$ |
5,773 |
|
| Vessel operating costs per
day(10) |
$ |
5,069 |
|
|
$ |
4,895 |
|
|
|
$ |
6,130 |
|
|
$ |
4,735 |
|
|
$ |
5,602 |
|
|
$ |
4,808 |
|
| Long-term charter-in costs per
day(11) |
$ |
- |
|
|
$ |
- |
|
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
| Supramax/Ultramax
Segment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Calendar days(2) |
|
2,469 |
|
|
|
1,974 |
|
|
|
|
2,494 |
|
|
|
1,683 |
|
|
|
4,963 |
|
|
|
3,657 |
|
| Available days(3) |
|
2,432 |
|
|
|
1,972 |
|
|
|
|
2,482 |
|
|
|
1,679 |
|
|
|
4,914 |
|
|
|
3,651 |
|
| Operating days(4) |
|
2,422 |
|
|
|
1,924 |
|
|
|
|
2,442 |
|
|
|
1,631 |
|
|
|
4,864 |
|
|
|
3,555 |
|
|
Owned fleet operating days(5) |
|
676 |
|
|
|
443 |
|
|
|
|
728 |
|
|
|
695 |
|
|
|
1,404 |
|
|
|
1,138 |
|
|
Long-term charter-in days(6) |
|
717 |
|
|
|
599 |
|
|
|
|
676 |
|
|
|
528 |
|
|
|
1,393 |
|
|
|
1,127 |
|
|
Short-term charter-in days(7) |
|
1,029 |
|
|
|
882 |
|
|
|
|
1,038 |
|
|
|
408 |
|
|
|
2,067 |
|
|
|
1,290 |
|
| Fleet utilization(8) |
|
99.6 |
% |
|
|
97.6 |
% |
|
|
|
98.4 |
% |
|
|
97.1 |
% |
|
|
99.0 |
% |
|
|
97.4 |
% |
| TCE per day(9) |
$ |
13,259 |
|
|
$ |
10,423 |
|
|
|
$ |
21,916 |
|
|
$ |
7,676 |
|
|
$ |
17,606 |
|
|
$ |
9,163 |
|
| Vessel operating costs per
day(10) |
$ |
5,309 |
|
|
$ |
4,632 |
|
|
|
$ |
5,116 |
|
|
$ |
4,688 |
|
|
$ |
5,212 |
|
|
$ |
4,666 |
|
| Long-term charter-in costs per
day(11) |
$ |
12,370 |
|
|
$ |
12,124 |
|
|
|
$ |
12,867 |
|
|
$ |
11,881 |
|
|
$ |
12,611 |
|
|
$ |
12,010 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Tankers Business |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Medium Range Tankers
Segment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Calendar days(2) |
|
180 |
|
|
|
546 |
|
|
|
|
33 |
|
|
|
510 |
|
|
|
213 |
|
|
|
1,056 |
|
| Available days(3) |
|
180 |
|
|
|
546 |
|
|
|
|
33 |
|
|
|
510 |
|
|
|
213 |
|
|
|
1,056 |
|
| Operating days(4) |
|
180 |
|
|
|
544 |
|
|
|
|
33 |
|
|
|
510 |
|
|
|
213 |
|
|
|
1,054 |
|
|
Owned fleet operating days(5) |
|
180 |
|
|
|
362 |
|
|
|
|
33 |
|
|
|
333 |
|
|
|
213 |
|
|
|
695 |
|
|
Long-term charter-in days(6) |
|
- |
|
|
|
182 |
|
|
|
|
- |
|
|
|
177 |
|
|
|
- |
|
|
|
359 |
|
|
Short-term charter-in days(7) |
|
- |
|
|
|
- |
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
| Fleet utilization(8) |
|
100 |
% |
|
|
99.6 |
% |
|
|
|
100 |
% |
|
|
100 |
% |
|
|
100 |
% |
|
|
99.8 |
% |
| TCE per day(9) |
$ |
10,344 |
|
|
$ |
19,156 |
|
|
|
$ |
(3,061 |
) |
|
$ |
19,543 |
|
|
$ |
8,268 |
|
|
$ |
19,343 |
|
| Vessel operating costs per
day(10) |
$ |
6,494 |
|
|
$ |
6,904 |
|
|
|
$ |
7,394 |
|
|
$ |
6,402 |
|
|
$ |
6,634 |
|
|
$ |
6,664 |
|
| Long-term charter-in costs per
day(11) |
$ |
- |
|
|
$ |
15,302 |
|
|
|
$ |
- |
|
|
$ |
15,299 |
|
|
$ |
- |
|
|
$ |
15,300 |
|
| Small Tanker
Segment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Calendar days(2) |
|
90 |
|
|
|
150 |
|
|
|
|
15 |
|
|
|
91 |
|
|
|
105 |
|
|
|
241 |
|
| Available days(3) |
|
90 |
|
|
|
150 |
|
|
|
|
15 |
|
|
|
91 |
|
|
|
105 |
|
|
|
241 |
|
| Operating days(4) |
|
90 |
|
|
|
146 |
|
|
|
|
15 |
|
|
|
85 |
|
|
|
105 |
|
|
|
231 |
|
|
Owned fleet operating days(5) |
|
90 |
|
|
|
146 |
|
|
|
|
15 |
|
|
|
85 |
|
|
|
105 |
|
|
|
231 |
|
|
Long-term charter-in days(6) |
|
- |
|
|
|
- |
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
Short-term charter-in days(7) |
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
| Fleet utilization(8) |
|
100 |
% |
|
|
97.3 |
% |
|
|
|
100 |
% |
|
|
93.4 |
% |
|
|
100 |
% |
|
|
95.9 |
% |
| TCE per day(9) |
$ |
9,778 |
|
|
$ |
13,212 |
|
|
|
$ |
1,867 |
|
|
$ |
8,200 |
|
|
$ |
8,648 |
|
|
$ |
11,368 |
|
| Vessel operating costs per
day(10) |
$ |
6,644 |
|
|
$ |
6,569 |
|
|
|
$ |
1,400 |
|
|
$ |
6,056 |
|
|
$ |
5,895 |
|
|
$ |
6,377 |
|
| Long-term charter-in costs per
day(11) |
$ |
- |
|
|
$ |
- |
|
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
(1) |
Segment results of operations include the proportionate share of
joint ventures, which differs from the consolidated statements of
profit or loss in our unaudited interim 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. Comparability of operating
days was affected by the consolidation of the IVS Bulk vessels in
February 2020. |
|
(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 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. Please 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’ vessel
operating costs and calendar days and excludes charter-in costs and
charter-in days. Please 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 associated with
long-term chartered-in vessels divided by long-term charter-in days
for the relevant period. Please 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. That discussion also shows an analysis of adjusted charter
hire costs split between long-term charter-in costs and short-term
charter-in costs.The average long-term charter-in costs per day for
the supramax/ultramax fleet for the second half of 2021 is expected
to be approximately $12,883/day. |
Unaudited Interim Condensed Consolidated Statement of
Financial Position
| |
|
30 June2021 |
|
|
31 December2020 |
|
| |
|
US$’000 |
|
|
US$’000 |
|
|
ASSETS |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| Current
assets |
|
|
|
|
|
|
|
|
| Cash and bank balances |
|
|
60,688 |
|
|
|
41,261 |
|
| Trade receivables |
|
|
9,313 |
|
|
|
7,928 |
|
| Contract assets |
|
|
1,054 |
|
|
|
900 |
|
| Other receivables and
prepayments |
|
|
19,795 |
|
|
|
18,740 |
|
| Due from joint ventures |
|
|
- |
|
|
|
1 |
|
| Loans to joint ventures |
|
|
798 |
|
|
|
798 |
|
| Derivative financial
instruments |
|
|
1,770 |
|
|
|
458 |
|
| Inventories |
|
|
12,709 |
|
|
|
8,700 |
|
| |
|
|
106,127 |
|
|
|
78,786 |
|
| Assets classified as held for
sale |
|
|
685 |
|
|
|
3,825 |
|
| Total current assets |
|
|
106,812 |
|
|
|
82,611 |
|
| |
|
|
|
|
|
|
|
|
| Non-current
assets |
|
|
|
|
|
|
|
|
| Restricted cash |
|
|
6,649 |
|
|
|
9,304 |
|
| Ships, property, plant and
equipment |
|
|
421,968 |
|
|
|
475,303 |
|
| Right-of-use assets |
|
|
43,903 |
|
|
|
49,062 |
|
| Interest in joint
ventures |
|
|
16 |
|
|
|
166 |
|
| Derivative financial
instruments |
|
|
736 |
|
|
|
- |
|
| Intangible assets |
|
|
323 |
|
|
|
405 |
|
| Goodwill |
|
|
- |
|
|
|
960 |
|
| Other investments |
|
|
3,214 |
|
|
|
3,150 |
|
| Deferred tax assets |
|
|
1,260 |
|
|
|
1,138 |
|
| Total non-current assets |
|
|
478,069 |
|
|
|
539,488 |
|
| |
|
|
|
|
|
|
|
|
| Total
assets |
|
|
584,881 |
|
|
|
622,099 |
|
| |
|
|
|
|
|
|
|
|
| LIABILITIES AND
EQUITY |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| Current
liabilities |
|
|
|
|
|
|
|
|
| Trade and other payables |
|
|
29,180 |
|
|
|
27,355 |
|
| Contract liabilities |
|
|
9,896 |
|
|
|
5,094 |
|
| Due to joint ventures |
|
|
9 |
|
|
|
- |
|
| Lease liabilities |
|
|
31,470 |
|
|
|
28,120 |
|
| Bank loans and other
borrowings |
|
|
24,191 |
|
|
|
53,394 |
|
| Derivative financial
instruments |
|
|
34 |
|
|
|
- |
|
| Provisions |
|
|
2,412 |
|
|
|
80 |
|
| Income tax payable |
|
|
846 |
|
|
|
3,350 |
|
| |
|
|
98,038 |
|
|
|
117,393 |
|
| Liabilities directly
associated with assets classified as held for sale |
|
|
74 |
|
|
|
508 |
|
| Total current liabilities |
|
|
98,112 |
|
|
|
117,901 |
|
Unaudited Interim Condensed Consolidated Statement of
Financial Position (cont’d)
| |
|
30 June2021 |
|
|
31 December2020 |
|
| |
|
US$’000 |
|
|
US$’000 |
|
|
Non-current liabilities |
|
|
|
|
|
|
|
|
| Trade and other payables |
|
|
194 |
|
|
|
198 |
|
| Lease liabilities |
|
|
13,301 |
|
|
|
23,124 |
|
| Bank loans and other
borrowings |
|
|
187,306 |
|
|
|
225,038 |
|
| Retirement benefit
obligation |
|
|
1,792 |
|
|
|
1,819 |
|
| Total non-current
liabilities |
|
|
202,593 |
|
|
|
250,179 |
|
| |
|
|
|
|
|
|
|
|
| Capital and
reserves |
|
|
|
|
|
|
|
|
| Share capital |
|
|
320,683 |
|
|
|
320,683 |
|
| Other equity and reserves |
|
|
(22,621 |
) |
|
|
(23,078 |
) |
| Accumulated losses |
|
|
(61,126 |
) |
|
|
(85,368 |
) |
| Equity attributable to owners
of the Company |
|
|
236,936 |
|
|
|
212,237 |
|
| Non-controlling interests |
|
|
47,240 |
|
|
|
41,782 |
|
| Total equity |
|
|
284,176 |
|
|
|
254,019 |
|
| |
|
|
|
|
|
|
|
|
| Total equity and
liabilities |
|
|
584,881 |
|
|
|
622,099 |
|
Unaudited Interim Condensed Consolidated Statement of
Profit or Loss
| |
|
Three months ended March
31, |
|
|
Three months ended June
30, |
|
|
(In thousands of U.S. dollars, other than per share data) |
|
2021 |
|
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
|
Revenue |
$ |
71,828 |
|
|
|
82,486 |
|
|
$ |
159,419 |
|
|
$ |
84,659 |
|
| Cost of
sales |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Voyage expenses |
|
(18,048 |
) |
|
|
(32,210 |
) |
|
|
(25,461 |
) |
|
|
(20,201 |
) |
|
Vessel operating costs |
|
(11,671 |
) |
|
|
(9,885 |
) |
|
|
(11,628 |
) |
|
|
(12,367 |
) |
|
Charter hire costs |
|
(12,729 |
) |
|
|
(11,271 |
) |
|
|
(20,411 |
) |
|
|
(8,262 |
) |
|
Depreciation of ships, drydocking and plant and equipment– owned
assets |
|
(5,931 |
) |
|
|
(5,693 |
) |
|
|
(6,665 |
) |
|
|
(6,040 |
) |
|
Depreciation of ships and ship equipment – right-of-use assets |
|
(8,294 |
) |
|
|
(7,099 |
) |
|
|
(8,752 |
) |
|
|
(6,237 |
) |
|
Other expenses |
|
(1,328 |
) |
|
|
(197 |
) |
|
|
(1,584 |
) |
|
|
(408 |
) |
|
Cost of ship sale |
|
(6 |
) |
|
|
(9,063 |
) |
|
|
(50,585 |
) |
|
|
(29,299 |
) |
| Gross
profit |
|
13,821 |
|
|
|
7,068 |
|
|
|
34,333 |
|
|
|
1,845 |
|
| Other operating income
(expense) |
|
122 |
|
|
|
6,243 |
|
|
|
239 |
|
|
|
(4,070 |
) |
| Administrative expense |
|
(6,917 |
) |
|
|
(6,379 |
) |
|
|
(8,788 |
) |
|
|
(5,841 |
) |
| Share of losses of joint
ventures |
|
(24 |
) |
|
|
(1,285 |
) |
|
|
(5 |
) |
|
|
(1,253 |
) |
| Interest income |
|
50 |
|
|
|
310 |
|
|
|
49 |
|
|
|
139 |
|
| Interest expense |
|
(3,580 |
) |
|
|
(4,260 |
) |
|
|
(4,157 |
) |
|
|
(4,374 |
) |
| Profit (loss) before
taxation |
|
3,472 |
|
|
|
1,697 |
|
|
|
21,671 |
|
|
|
(13,554 |
) |
| Income tax (expense)
benefit |
|
(128 |
) |
|
|
(677 |
) |
|
|
2,572 |
|
|
|
223 |
|
| Profit (loss) for the
period |
|
3,344 |
|
|
|
1,020 |
|
|
|
24,243 |
|
|
|
(13,331 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Profit (loss) for the
period attributable to: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Owners of the Company |
|
2,358 |
|
|
|
1,300 |
|
|
|
19,771 |
|
|
|
(11,795 |
) |
| Non-controlling interests |
|
986 |
|
|
|
(280 |
) |
|
|
4,472 |
|
|
|
(1,536 |
) |
| |
|
3,344 |
|
|
|
1,020 |
|
|
|
24,243 |
|
|
|
(13,331 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Profit (loss) per
share attributable to owners of the Company: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Weighted average number of
shares on which the basic per share figures have been
calculated |
|
19,107,913 |
|
|
|
18,844,192 |
|
|
|
19,297,655 |
|
|
|
19,006,858 |
|
| Effect of dilutive potential
ordinary shares |
|
347,168 |
|
|
|
485,334 |
|
|
|
347,168 |
|
|
|
- |
|
| Weighted average number of
ordinary shares for the purpose of diluted earnings per share |
|
19,455,081 |
|
|
|
19,329,526 |
|
|
|
19,644,823 |
|
|
|
19,006,858 |
|
| Basic earnings (loss) per
share |
$ |
0.12 |
|
|
$ |
0.07 |
|
|
$ |
1.02 |
|
|
$ |
(0.62 |
) |
| Diluted earnings (loss) per
share |
$ |
0.12 |
|
|
$ |
0.07 |
|
|
$ |
1.01 |
|
|
$ |
(0.62 |
) |
| |
|
Six months ended June 30, |
|
|
(In thousands of U.S. dollars, other than per share data) |
|
2021 |
|
|
2020 |
|
|
Revenue |
|
$ |
231,247 |
|
|
$ |
167,145 |
|
| Cost of
sales |
|
|
|
|
|
|
|
|
|
Voyage expenses |
|
|
(43,509 |
) |
|
|
(52,411 |
) |
|
Vessel operating costs |
|
|
(23,299 |
) |
|
|
(22,252 |
) |
|
Charter hire costs |
|
|
(33,140 |
) |
|
|
(19,533 |
) |
|
Depreciation of ships, drydocking and plant and equipment– owned
assets |
|
|
(12,596 |
) |
|
|
(11,733 |
) |
|
Depreciation of ships and ship equipment – right-of-use assets |
|
|
(17,046 |
) |
|
|
(13,336 |
) |
|
Other expenses |
|
|
(2,912 |
) |
|
|
(605 |
) |
|
Cost of ship sale |
|
|
(50,591 |
) |
|
|
(38,362 |
) |
| Gross
profit |
|
|
48,154 |
|
|
|
8,913 |
|
| Other operating income |
|
|
361 |
|
|
|
2,173 |
|
| Administrative expense |
|
|
(15,705 |
) |
|
|
(12,220 |
) |
| Share of losses of joint
ventures |
|
|
(29 |
) |
|
|
(2,538 |
) |
| Interest income |
|
|
99 |
|
|
|
449 |
|
| Interest expense |
|
|
(7,737 |
) |
|
|
(8,634 |
) |
| Profit (loss) before
taxation |
|
|
25,143 |
|
|
|
(11,857 |
) |
| Income tax benefit (expense) |
|
|
2,444 |
|
|
|
(454 |
) |
| Profit (loss) for the
period |
|
|
27,587 |
|
|
|
(12,311 |
) |
| |
|
|
|
|
|
|
|
|
| Profit (loss) for the
period attributable to: |
|
|
|
|
|
|
|
|
| Owners of the Company |
|
|
22,129 |
|
|
|
(10,495 |
) |
| Non-controlling interests |
|
|
5,458 |
|
|
|
(1,816 |
) |
| |
|
|
27,587 |
|
|
|
(12,311 |
) |
| |
|
|
|
|
|
|
|
|
| Profit (loss) per share
attributable to owners of the Company: |
|
|
|
|
|
|
|
|
| Weighted average number of shares
on which the basic per share figures have been calculated |
|
|
19,203,308 |
|
|
|
18,925,969 |
|
| Effect of dilutive potential
ordinary shares |
|
|
347,168 |
|
|
|
- |
|
| Weighted average number of
ordinary shares for the purpose of diluted earnings per share |
|
|
19,550,476 |
|
|
|
18,925,969 |
|
| Basic earnings (loss) per
share |
|
$ |
1.15 |
|
|
$ |
(0.55 |
) |
| Diluted earnings (loss) per
share |
|
$ |
1.13 |
|
|
$ |
(0.55 |
) |
Unaudited Summary Statement of Cash Flows
The following table presents cash flow information for each of
the six months ended June 30, 2021 and 2020.
| |
|
Six months ended June 30, |
|
|
(In thousands of U.S. dollars) |
|
2021 |
|
|
2020 |
|
| |
|
|
|
|
|
|
|
Net cash flows generated from (used in) operating activities |
|
$ |
102,069 |
|
|
$ |
48,786 |
|
| Net cash generated from (used
in) investing activities |
|
|
243 |
|
|
|
(25,642 |
) |
| Net cash flows used in
financing activities |
|
|
(82,294 |
) |
|
|
(15,227 |
) |
| Net increase in cash
and cash equivalents |
|
|
20,018 |
|
|
|
7,917 |
|
| Cash and cash equivalents,
beginning of period |
|
|
37,942 |
|
|
|
32,386 |
|
| Effect of exchange rate
changes on the balance of cash held in foreign currencies |
|
|
118 |
|
|
|
(1,144 |
) |
| Cash and cash
equivalents, end of period |
|
|
58,078 |
|
|
|
39,159 |
|
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
three month periods ended March 31, 2021, June 30, 2021 and the six
month period ended June 30, 2021.
| |
|
2021 |
|
| |
|
Three months ended March 31 |
|
|
Three months ended June 30 |
|
|
Six months ended June 30 |
|
|
(In thousands of U.S. dollars) |
|
Revenue |
|
|
VoyageExpenses |
|
|
TCERevenue |
|
|
Revenue |
|
|
VoyageExpenses |
|
|
TCE Revenue |
|
|
Revenue |
|
|
VoyageExpenses |
|
|
TCERevenue |
|
|
Vessel revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Handysize |
|
|
23,511 |
|
|
(6,371 |
) |
|
17,140 |
|
|
37,246 |
|
|
(7,736 |
) |
|
29,510 |
|
|
60,757 |
|
|
(14,107 |
) |
|
46,650 |
|
|
Supramax/ultramax |
|
|
43,374 |
|
|
(11,260 |
) |
|
32,114 |
|
|
71,039 |
|
|
(17,519 |
) |
|
53,520 |
|
|
114,413 |
|
|
(28,779 |
) |
|
85,634 |
|
|
Medium range tankers |
|
|
1,862 |
|
|
- |
|
|
1,862 |
|
|
(100 |
) |
|
(1 |
) |
|
(101 |
) |
|
1,762 |
|
|
(1 |
) |
|
1,761 |
|
|
Small tankers |
|
|
1,295 |
|
|
(415 |
) |
|
880 |
|
|
38 |
|
|
(10 |
) |
|
28 |
|
|
1,333 |
|
|
(425 |
) |
|
908 |
|
|
Other drybulk carriers |
|
|
- |
|
|
|
|
|
|
|
|
135 |
|
|
|
|
|
|
|
|
135 |
|
|
|
|
|
|
|
|
Other tankers |
|
|
1,296 |
|
|
|
|
|
|
|
|
1,291 |
|
|
|
|
|
|
|
|
2,587 |
|
|
|
|
|
|
|
| Ship sale revenue |
|
|
- |
|
|
|
|
|
|
|
|
49,465 |
|
|
|
|
|
|
|
|
49,465 |
|
|
|
|
|
|
|
| Other revenue |
|
|
490 |
|
|
|
|
|
|
|
|
305 |
|
|
|
|
|
|
|
|
795 |
|
|
|
|
|
|
|
| Adjustments(*) |
|
|
- |
|
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
|
| Revenue |
|
|
71,828 |
|
|
|
|
|
|
|
|
159,419 |
|
|
|
|
|
|
|
|
231,247 |
|
|
|
|
|
|
|
Below is a reconciliation from TCE revenue to revenue for the
three month periods ended March 31, 2020, June 30, 2020 and the six
month period ended June 30, 2020.
| |
|
2020 |
|
| |
|
Three months ended March 31 |
|
|
Three months ended June 30 |
|
|
Six months ended June 30 |
|
|
(In thousands of U.S. dollars) |
|
Revenue |
|
|
VoyageExpenses |
|
|
TCERevenue |
|
|
Revenue |
|
|
VoyageExpenses |
|
|
TCE Revenue |
|
|
Revenue |
|
|
VoyageExpenses |
|
|
TCERevenue |
|
|
Vessel revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Handysize |
|
|
16,810 |
|
|
(8,352 |
) |
|
8,458 |
|
|
21,463 |
|
|
(10,379 |
) |
|
11,084 |
|
|
38,273 |
|
|
(18,731 |
) |
|
19,542 |
|
|
Supramax/ultramax |
|
|
41,706 |
|
|
(21,652 |
) |
|
20,054 |
|
|
21,859 |
|
|
(9,339 |
) |
|
12,520 |
|
|
63,565 |
|
|
(30,991 |
) |
|
32,574 |
|
|
Medium range tankers |
|
|
10,421 |
|
|
- |
|
|
10,421 |
|
|
9,968 |
|
|
(1 |
) |
|
9,967 |
|
|
20,389 |
|
|
(1 |
) |
|
20,388 |
|
|
Small tankers |
|
|
2,527 |
|
|
(598 |
) |
|
1,929 |
|
|
991 |
|
|
(294 |
) |
|
697 |
|
|
3,518 |
|
|
(892 |
) |
|
2,626 |
|
|
Other drybulk carriers |
|
|
122 |
|
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
|
|
122 |
|
|
|
|
|
|
|
|
Other tankers |
|
|
1,291 |
|
|
|
|
|
|
|
|
1,301 |
|
|
|
|
|
|
|
|
2,592 |
|
|
|
|
|
|
|
| Ship sale revenue |
|
|
9,083 |
|
|
|
|
|
|
|
|
28,814 |
|
|
|
|
|
|
|
|
37,897 |
|
|
|
|
|
|
|
| Other revenue |
|
|
988 |
|
|
|
|
|
|
|
|
263 |
|
|
|
|
|
|
|
|
1,251 |
|
|
|
|
|
|
|
| Adjustments(*) |
|
|
(462 |
) |
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
|
|
(462 |
) |
|
|
|
|
|
|
| Revenue |
|
|
82,486 |
|
|
|
|
|
|
|
|
84,659 |
|
|
|
|
|
|
|
|
167,145 |
|
|
|
|
|
|
|
|
* |
Vessel revenue earned and voyage expenses incurred by the joint
ventures are included within the operating segment information on a
proportionate consolidation basis for the period the joint venture
existed during the period. Accordingly, joint ventures
proportionate financial information are adjusted out to reconcile
to the unaudited interim 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. 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 three month
periods ended March 31, 2021 and March 31, 2020.
| |
|
Three months ended March 31, |
|
| |
|
2021 |
|
|
(In thousands of U.S. dollars) |
|
Charter hirecosts |
|
|
Leasepayments
onShips |
|
|
Adjustedcharter
hirecosts |
|
|
Long-termcharter-incosts |
|
|
Short-termcharter-incosts |
|
|
Adjustedcharter
hirecosts |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Handysize |
|
|
1,105 |
|
|
- |
|
|
1,105 |
|
|
- |
|
|
1,105 |
|
|
1,105 |
|
| Supramax/ultramax |
|
|
11,624 |
|
|
8,918 |
|
|
20,542 |
|
|
8,869 |
|
|
11,673 |
|
|
20,542 |
|
|
|
|
|
12,729 |
|
|
8,918 |
|
|
21,647 |
|
|
|
|
|
|
|
|
21,647 |
|
| |
|
Three months ended March 31, |
|
| |
|
2020 |
|
|
(In thousands of U.S. dollars) |
|
Charter hirecosts |
|
|
Leasepayments
onShips |
|
|
Adjustedcharter
hirecosts |
|
|
Long-termcharter-incosts |
|
|
Short-term
charter-incosts |
|
|
Adjusted charter hire
costs |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Handysize |
|
|
2,091 |
|
|
- |
|
|
2,091 |
|
|
- |
|
|
2,091 |
|
|
2,091 |
|
| Supramax/ultramax |
|
|
7,787 |
|
|
6,598 |
|
|
14,385 |
|
|
7,262 |
|
|
7,123 |
|
|
14,385 |
|
| Medium range tankers |
|
|
1,393 |
|
|
1,392 |
|
|
2,785 |
|
|
2,785 |
|
|
- |
|
|
2,785 |
|
| |
|
|
11,271 |
|
|
7,990 |
|
|
19,261 |
|
|
|
|
|
|
|
|
19,261 |
|
Below is a reconciliation from long-term
charter-in costs to Adjusted charter hire costs for the three month
periods ended June 30, 2021 and June 30, 2020.
| |
|
Three months ended June 30, |
|
| |
|
2021 |
|
|
(In thousands of U.S. dollars) |
|
Charter hirecosts |
|
|
Leasepayments
onShips |
|
|
Adjustedcharter
hirecosts |
|
|
Long-termcharter-incosts |
|
|
Short-term
charter-incosts |
|
|
Adjusted charter hire
costs |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Handysize |
|
|
3,923 |
|
|
- |
|
|
3,923 |
|
|
- |
|
|
3,923 |
|
|
3,923 |
|
| Supramax/ultramax |
|
|
16,488 |
|
|
9,335 |
|
|
25,823 |
|
|
8,698 |
|
|
17,125 |
|
|
25,823 |
|
| |
|
|
20,411 |
|
|
9,335 |
|
|
29,746 |
|
|
|
|
|
|
|
|
29,746 |
|
| |
|
Three months ended June 30, |
|
| |
|
2020 |
|
|
(In thousands of U.S. dollars) |
|
Charter hirecosts |
|
|
Leasepayments
onShips |
|
|
Adjustedcharter
hirecosts |
|
|
Long-termcharter-incosts |
|
|
Short-term
charter-incosts |
|
|
Adjusted charter hire
costs |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Handysize |
|
|
2,760 |
|
|
- |
|
|
2,760 |
|
|
- |
|
|
2,760 |
|
|
2,760 |
|
| Supramax/ultramax |
|
|
3,197 |
|
|
6,446 |
|
|
9,643 |
|
|
6,273 |
|
|
3,370 |
|
|
9,643 |
|
| Medium range tankers |
|
|
2,305 |
|
|
403 |
|
|
2,708 |
|
|
2,708 |
|
|
- |
|
|
2,708 |
|
| |
|
|
8,262 |
|
|
6,849 |
|
|
15,111 |
|
|
|
|
|
|
|
|
15,111 |
|
Below is a reconciliation from long-term charter-in costs to
Adjusted charter hire costs for the six month periods ended June
30, 2021 and June 30, 2020.
| |
|
Six months ended June 30, |
|
| |
|
2021 |
|
|
(In thousands of U.S. dollars) |
|
Charter hirecosts |
|
|
Leasepayments
onShips |
|
|
Adjustedcharter
hirecosts |
|
|
Long-termcharter-incosts |
|
|
Short-term
charter-incosts |
|
|
Adjusted charter hire
costs |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Handysize |
|
|
5,028 |
|
|
- |
|
|
5,028 |
|
|
- |
|
|
5,028 |
|
|
5,028 |
|
| Supramax/ultramax |
|
|
28,112 |
|
|
18,253 |
|
|
46,365 |
|
|
17,567 |
|
|
28,798 |
|
|
46,365 |
|
| |
|
|
33,140 |
|
|
18,253 |
|
|
51,393 |
|
|
|
|
|
|
|
|
51,393 |
|
| |
|
Six months ended June 30, |
|
| |
|
2020 |
|
|
(In thousands of U.S. dollars) |
|
Charter hirecosts |
|
|
Leasepayments
onShips |
|
|
Adjustedcharter
hirecosts |
|
|
Long-termcharter-incosts |
|
|
Short-term
charter-incosts |
|
|
Adjusted charter hire
costs |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Handysize |
|
|
4,851 |
|
|
- |
|
|
4,851 |
|
|
- |
|
|
4,851 |
|
|
4,851 |
|
| Supramax/ultramax |
|
|
10,984 |
|
|
13,044 |
|
|
24,028 |
|
|
13,535 |
|
|
10,493 |
|
|
24,028 |
|
| Medium range tankers |
|
|
3,698 |
|
|
1,795 |
|
|
5,493 |
|
|
5,493 |
|
|
- |
|
|
5,493 |
|
| |
|
|
19,533 |
|
|
14,839 |
|
|
34,372 |
|
|
|
|
|
|
|
|
34,372 |
|
|
* |
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 interim condensed consolidated financial
statements. |
EBITDA and Adjusted EBITDAEBITDA is defined as
earnings before income tax benefit (expense), interest income,
interest expense, share of losses of joint ventures and
depreciation and amortization. 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 profit (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 profit
(loss) for the period to EBITDA and Adjusted EBITDA for the three
months ended March 31, 2021 and 2020, the three month period
ended June 30, 2021 and 2020 and six months ended June 30, 2021 and
2020.
| |
|
Three months endedMarch 31, |
|
|
Three months endedJune
30, |
|
|
Six months endedJune 30, |
|
(In thousands of U.S. dollars) |
|
2021 |
|
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit (loss) for the period |
$ |
3,344 |
|
|
$ |
1,020 |
|
|
$ |
24, 243 |
|
|
$ |
(13,331 |
) |
|
$ |
27,587 |
|
|
$ |
(12,311 |
) |
|
| Adjusted for: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense (benefit) |
|
128 |
|
|
|
677 |
|
|
|
(2,572 |
) |
|
|
(223 |
) |
|
|
(2,444 |
) |
|
|
454 |
|
|
|
Interest income |
|
(50 |
) |
|
|
(310 |
) |
|
|
(49 |
) |
|
|
(139 |
) |
|
|
(99 |
) |
|
|
(449 |
) |
|
|
Interest expense |
|
3,580 |
|
|
|
4,260 |
|
|
|
4,157 |
|
|
|
4,374 |
|
|
|
7,737 |
|
|
|
8,634 |
|
|
|
Share of losses of joint ventures |
|
24 |
|
|
|
1,285 |
|
|
|
5 |
|
|
|
1,253 |
|
|
|
29 |
|
|
|
2,538 |
|
|
|
Depreciation and amortization |
|
14,519 |
|
|
|
13,143 |
|
|
|
15,714 |
|
|
|
12,577 |
|
|
|
30,233 |
|
|
|
25,720 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| EBITDA |
|
21,545 |
|
|
|
20,075 |
|
|
|
41,498 |
|
|
|
4,511 |
|
|
|
63,043 |
|
|
|
24,586 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted for |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (Reversal of) impairment loss
recognized on ships |
|
- |
|
|
|
- |
|
|
|
(3,557 |
) |
|
|
3,662 |
|
|
|
(3,557 |
) |
|
|
3,662 |
|
|
| Impairment loss recognized on
goodwill and intangibles |
|
- |
|
|
|
- |
|
|
|
965 |
|
|
|
- |
|
|
|
965 |
|
|
|
- |
|
|
| Reversal of impairment loss
recognized on right-of-use assets |
|
- |
|
|
|
- |
|
|
|
(1,046 |
) |
|
|
- |
|
|
|
(1,046 |
) |
|
|
- |
|
|
| (Reversal of) impairment loss
on net disposal group |
|
(38 |
) |
|
|
- |
|
|
|
2,589 |
|
|
|
576 |
|
|
|
2,551 |
|
|
|
576 |
|
|
| Share based compensation |
|
256 |
|
|
|
477 |
|
|
|
256 |
|
|
|
478 |
|
|
|
512 |
|
|
|
955 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ADJUSTED
EBITDA |
|
21,763 |
|
|
|
20,552 |
|
|
|
40,705 |
|
|
|
9,227 |
|
|
|
62,468 |
|
|
|
29,779 |
|
|
Headline earnings (loss) and Headline earnings
(loss) per share
The Johannesburg Stock Exchange, or JSE,
requires that we calculate and publicly disclose Headline earnings
(loss) per share and diluted Headline earnings (loss) per share.
Headline earnings (loss) per share is calculated using net income
which has been determined based on IFRS. Accordingly, this may
differ to the Headline earnings (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 earnings (loss) for the period
represents profit (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 earnings (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 Profit (loss) for the period attributable to owners of the
Company to Headline earnings (loss) for the three months ended
March 31, 2021 and 2020, the three months ended June 30, 2021 and
2020 and six months ended June 30, 2021 and June 30, 2020.
| |
|
Three months endedMarch 31, |
|
|
Three months endedJune
30, |
|
|
Six months ended June 30, |
|
|
(In thousands of U.S. dollars, other
than per share data) |
|
2021 |
|
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Reconciliation
between profit (loss) for the period attributable to owners of the
Company and headline earnings (loss): |
| Profit (loss) for the
period attributable to owners of the Company |
$ |
2,358 |
|
|
$ |
1,300 |
|
|
$ |
19,771 |
|
|
$ |
(11,795 |
) |
$ |
22,129 |
|
$ |
(10,495 |
) |
| Adjusted for: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- (Reversal of) impairment loss recognized on ships |
|
- |
|
|
|
- |
|
|
|
(3,557 |
) |
|
|
3,662 |
|
|
(3,557 |
) |
|
3,662 |
|
|
- Reversal of Impairment loss recognized on right-of-use
assets |
|
- |
|
|
|
- |
|
|
|
(1,046 |
) |
|
|
- |
|
|
(1,046 |
) |
|
- |
|
|
- Impairment loss recognized on goodwill and intangibles |
|
- |
|
|
|
- |
|
|
|
965 |
|
|
|
- |
|
|
965 |
|
|
- |
|
|
- Loss on disposals of plant and equipment |
|
- |
|
|
|
- |
|
|
|
25 |
|
|
|
- |
|
|
25 |
|
|
- |
|
|
- (Reversal of) impairment loss on net disposal group |
|
(38 |
) |
|
|
- |
|
|
|
2,589 |
|
|
|
576 |
|
|
2,551 |
|
|
576 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Headline earnings (loss) |
|
2,320 |
|
|
|
1,300 |
|
|
|
18,747 |
|
|
|
(7,557 |
) |
|
21,067 |
|
|
(6,257 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of shares on which the per share figures have been
calculated |
|
19,107,913 |
|
|
|
18,844,192 |
|
|
|
19,297,655 |
|
|
|
19,006,858 |
|
|
19,203,308 |
|
|
18,925,969 |
|
|
Effect of dilutive potential ordinary shares |
|
347,168 |
|
|
|
485,334 |
|
|
|
347,168 |
|
|
|
- |
|
|
347,168 |
|
|
- |
|
|
Weighted average number of ordinary shares for the purpose of
diluted earnings per share |
|
19,455,081 |
|
|
|
19,329,526 |
|
|
|
19,644,823 |
|
|
|
19,006,858 |
|
|
19,550,476 |
|
|
18,925,969 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic profit (loss) per share |
$ |
0.12 |
|
|
$ |
0.07 |
|
|
$ |
1.02 |
|
|
$ |
(0.62 |
) |
|
1.15 |
|
|
(0.55 |
) |
|
Diluted profit (loss) per share |
|
0.12 |
|
|
|
0.07 |
|
|
|
1.01 |
|
|
|
(0.62 |
) |
|
1.13 |
|
|
(0.55 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic headline earnings (loss) per share |
$ |
0.12 |
|
|
$ |
0.07 |
|
|
$ |
0.97 |
|
|
$ |
(0.40 |
) |
|
1.10 |
|
|
(0.33 |
) |
|
Diluted headline earnings (loss) per share |
|
0.12 |
|
|
|
0.07 |
|
|
|
0.95 |
|
|
|
(0.40 |
) |
|
1.08 |
|
|
(0.33 |
) |
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. 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 these 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 and economic
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; 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, 2020 filed with the Securities and Exchange
Commission on March 31, 2021. 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.comWebsite:
www.grinshipping.com |
Investor Relations /
Media Contact: Nicolas Bornozis / Daniela GuerreroCapital
Link, Inc.230 Park Avenue, Suite 1536New York, N.Y. 10169Tel.:
(212) 661-7566Fax: (212) 661-7526Email:
grindrod@capitallink.com |
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