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 second half (1) and full
year 2023 earnings results for the period ended December 31, 2023.
Financial Highlights for the Second Half
of the Year Ended December 31, 2023
- Revenues of
$201.2 million
- Gross profit of
$15.9 million
- Loss for the period and
attributable to owners of the Company of $10.9 million, or
$0.56 per ordinary share
- Adjusted net loss of
$9.2 million, or $0.47 per ordinary share(2)
- Adjusted EBITDA of
$24.8 million(2)
- Handysize and supramax/ultramax TCE
per day of $10,182 and $13,849, respectively(2)
Financial Highlights for the Full Year
Ended December 31, 2023
- Revenues of
$387.1 million
- Gross profit of
$39.4 million
- Loss for the period and
attributable to owners of the Company of $9.6 million, or
$0.49 per ordinary share
- Adjusted net loss of
$7.9 million, or $0.41 per ordinary share(2)
- Adjusted EBITDA of
$64.7 million(2)
- Handysize and supramax/ultramax TCE
per day of $10,351 and $13,908, respectively(2)
- Period end cash and cash
equivalents of $55.2 million and restricted cash of $8.7
million
(1) Results are presented on a semi-annual basis
due to the Company transitioning from quarterly reporting.
(2) Adjusted EBITDA, Adjusted net income/(loss)
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 & Corporate Highlights
for the Second Half of the Year ended December 31,
2023
- On July 11, 2023, we exercised the
option to extend the firm charter-in period of the 2016-built
supramax bulk carrier IVS Windsor for 12 months.
- On July 13, 2023, we announced an
EGM to be held on August 10, 2023 to propose a capital reduction
which would result in a total cash distribution to shareholders up
to a maximum of $45.0 million.
- On July 17, 2023, we exercised the
option to extend the firm charter-in period of the 2014-built
supramax bulk carrier IVS Naruo for 12 months.
- On July 18, 2023, we entered into a
contract to purchase the 2024-built handysize bulk carrier
newbuilding for a price of $33.8 million (before costs) from Good
Viscount (MI) Ltd (a wholly owned subsidiary of our parent company
Taylor Maritime Investments Limited (“TMI”). The acquisition, which
is at an agreed price consistent with two independent broker
valuations obtained in connection with the transaction, was
unanimously approved by the disinterested members of the
Board.
- On July 24, 2023, we entered into a
contract to purchase the 2011-built handysize bulk carrier, Steady
Sarah, for a price of $15.0 million (before costs) from Billy (MI)
Ltd (a wholly owned subsidiary of our parent company TMI). The
acquisition, which is at an agreed price consistent with three
independent broker valuations obtained in connection with the
transaction, was unanimously approved by the disinterested members
of the Board. We took delivery of the handysize bulk carrier on
July 28, 2023.
- On August 4, 2023, we delivered the
2011-built handysize bulk carrier, IVS Orchard, to her new
owners.
- On August 10, 2023, a special
resolution was passed at an EGM for a capital reduction which would
result in a total cash distribution up to a maximum of $45.0
million. The Company does not intend to declare any further
dividends for 2023 in light of the cash distribution.
- On August 24, 2023, we entered into
an en-bloc deal to sell the 2015-built ultramax bulk carrier, IVS
Bosch Hoek and the 2016-built ultramax bulk carrier, IVS Hayakita,
for $46.5 million (before costs). IVS Hayakita is a chartered-in
vessel with a purchase option which we exercised on May 25, 2023.
The vessels were delivered to the new owners on September 19 and
September 25, 2023, respectively and approximately $10.0 million
debt was repaid on the Company’s $114.1 million senior secured
credit facility.
- On September 1, 2023, we exercised
our option to extend the firm charter-in period of the 2020-built
supramax bulk carrier, IVS Pebble Beach for 12 months at a
pre-agreed fixed rate, starting from October 22, 2023.
- On September 14, 2023, we entered
into a contract to sell the 2013-built handysize bulk carrier, IVS
Merlion, for $11.6 million (before costs) with delivery to her new
owners on November 29, 2023. This vessel is unencumbered.
- On September 25, 2023, we entered
into two sale and purchase agreements to acquire the entire issued
share capital of Tamar Ship Management Limited and Taylor Maritime
Management Limited for a total consideration of approximately $11.8
million (before costs). The closing was subject to closing
conditions.
- On September 27, 2023, we entered
into a contract to sell the 2013-built handysize bulk carrier, IVS
Raffles, for $11.6 million (before costs) with delivery to her new
owners on November 16, 2023. This vessel is unencumbered.
- On September 29, 2023, we announced
that the fully paid-up share capital would be reduced by $32.4
million and the Company would distribute cash in two tranches; the
first distribution of $1.01598 per ordinary share, which was paid
on October 26, 2023, and the second distribution of $0.63193 per
ordinary share, paid on December 11, 2023, to all shareholders of
record as of October 20, 2023.
- On October 3, 2023, we announced
that the completion conditions included in the two sale and
purchase agreements for the acquisition of the entire issued share
capital of Tamar Ship Management Limited and Taylor Maritime
Management Limited had been met. The acquisition became legally
effective on October 3, 2023.
- On November 7, 2023, we exercised
our option to extend the firm charter-in period of the 2020-built
supramax bulk carrier, IVS Atsugi for 12 months at a pre-agreed
fixed rate, starting from approximately December 30, 2023.
- On November 13, 2023, we exercised
the purchase option on the 2014-built supramax bulk carrier IVS
Naruo for approximately $12.0 million with delivery expected to
take place on or before June 30, 2024. We can provide no assurances
that the delivery will take place by that time or at all.
- On November 16, 2023, we delivered
the 2013-built handysize bulk carrier, IVS Raffles, to her new
owners.
- On November 29, 2023, we delivered
the 2013-built handysize bulk carrier, IVS Merlion, to her new
owners.
- On December 7, 2023, we announced
the resignation of Mr. Charles Goodson Maltby as a non-executive
director of the Company with effect from December 31, 2023 and the
formation of a new Safety and Technical Committee.
- On December 11, 2023, we completed
the second tranche of the share capital reduction with a
distribution of $0.63193 per ordinary share to all shareholders on
record as of October 20, 2023.
- On December 11, 2023, we entered
into agreements to charter-in two ultramax drybulk vessels. The
vessels are expected to be delivered in Q1 2024 and Q2 2024 and
will be chartered-in for a minimum of one year.
- On December 22, 2023, we extended
the firm charter-in period of the 2014-built supramax bulk carrier
IVS Crimson Creek for approximately 12 to 15 months.
Recent Developments
- On January 17, 2024, we entered into a contract to sell the
2007-built handysize bulk carrier, IVS Kingbird, for $10.4 million
(before costs), effectively a 1.1% premium to carrying value with
delivery to her new owners on February 1, 2024. This vessel is
unencumbered.
- On February 6, 2024, we took delivery of the HB Imabari, a
handysize bulk carrier built in Japan. We finalized and drew down
$20.2 million in financing with IYO Bank in conjunction with the
delivery.
- On February 23, 2024, we entered into a contract to sell the
2012-built handysize bulk carrier, IVS Ibis, for $11.7 million
(before costs) with delivery to her new owners planned on or about
March 21, 2024. We can provide no assurances that the delivery will
take place by that time or at all.
- As of February 22, 2024, we have contracted the following
TCE per day for the first quarter of 2024 (1):
- Handysize: approximately 1,274 operating days(2) at an average
TCE per day of approximately $11,875
- Supramax/ultramax: approximately 1,004 operating days(2) at an
average TCE per day of approximately $14,795
(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
Edward Buttery, the Chief Executive Officer,
commented:
“Following TMI’s acquisition in December 2022,
the priority for 2023 was deleveraging to strengthen the balance
sheet while maintaining an attractive fleet of modern, efficient
geared bulk carriers. I am pleased with the progress the
Company made despite challenging market conditions. We
reduced our interest-bearing debt by $56.9 million during 2023,
reducing yearly interest payments by $1.9 million. During this
time, we have also been improving cost efficiencies across the
fleet, the benefits of which should be evident by the end of this
year. There remains plenty to do in 2024 and I think we are
well positioned to achieve our goals against a backdrop of a more
favourable market outlook. We’re encouraged by the recent positive
market momentum.”
Unaudited Results for the Six Months
Ended December 31, 2023 and 2022
Revenue was $201.2 million for the six months
ended December 31, 2023 and $188.6 million for the six months ended
December 31, 2022. Vessel revenue was $116.5 million for the six
months ended December 31, 2023 and $188.2 million for the six
months ended December 31, 2022. Revenue increased due to ship sale
revenue generated from the sale of three handysize and two
supramax/ultramax vessels in the second half of 2023 compared to no
sales for the same period in 2022. This was partially offset by
decreased vessel revenue due to weakening market conditions in the
drybulk business.
Our handysize total revenue and
supramax/ultramax total revenue was $79.9 million and $118.5
million, respectively, for the six months ended December 31, 2023,
and $71.1 million and $117.5 million, respectively, for the six
months ended December 31, 2022. Handysize vessel revenue and
supramax/ultramax vessel revenue was $45.4 million and $71.1
million, respectively, for the six months ended December 31, 2023,
and $70.9 million and $117.4 million, respectively, for the six
months ended December 31, 2022. The results for the six months
ended December 31, 2023 were negatively impacted by weaker spot
markets. Handysize ship sale revenue and supramax/ultramax ship
sale revenue was $34.5 million and $47.4 million, respectively, for
the six months ended December 31, 2023, reflecting the sale of
three handysize and two supramax/ultramax vessels in the second
half of 2023 compared to no sales for the same period in 2022.
Handysize TCE per day was $10,182 per day for
the six months ended December 31, 2023 and $19,161 per day for the
six months ended December 31, 2022. Supramax/ultramax TCE per day
was $13,849 per day for the six months ended December 31, 2023 and
$23,685 per day for the six months ended December 31, 2022.
Cost of sales was $185.4 million for the six
months ended December 31, 2023 and $127.1 million for the six
months ended December 31, 2022. Cost of sales increased primarily
as a result of the sale of three handysize and two
supramax/ultramax vessels in the second half of 2023 compared to no
sales for the same period in 2022. This was partially offset by a
decrease in vessel operating costs and depreciation of ships,
drydocking and plant and equipment-owned assets due to the sale of
five handysize and four supramax/ultramax vessels concluded in 2023
compared to no ship sales in these segments in 2022.
Our handysize segment and supramax/ultramax
segment cost of sales was $77.6 million and $109.2 million,
respectively, for the six months ended December 31, 2023 and $48.3
million and $80.5 million, respectively, for the six months ended
December 31, 2022. Cost of sales increased in the handysize segment
due to the sale of three handysize vessels in the second half of
2023 compared to no sales for the same period in 2022, which was
partially offset by a decrease in vessel operating costs and
depreciation of ships, drydocking and plant and equipment-owned
assets as a result of the vessels sold during the year. Cost of
sales increased in the supramax/ultramax segment due to the sale of
two supramax/ultramax vessels in the second half of 2023 compared
to no ship sales for the same period in 2022, partially offset by a
decrease in vessel operating costs and depreciation of ships,
drydocking and plant and equipment-owned assets as a result of the
vessels sold during the year.
Handysize voyage expenses and supramax/ultramax
voyage expenses were $12.8 million and $26.0 million, respectively,
for the six months ended December 31, 2023 and $15.8 million and
$28.9 million, respectively, for the six months ended December 31,
2022. Handysize charter hire expense and supramax/ultramax charter
hire expense were $10.1 million and $9.6 million, respectively, for
the six months ended December 31, 2023 and $6.2 million and $18.2
million, respectively, for the six months ended December 31, 2022.
The decrease in the supramax/ultramax segment was as a result of a
decrease in short term charters due to the reduction in demand for
drybulk vessels in 2023. Handysize vessel operating costs and
supramax/ultramax vessel operating costs were $13.1 million and
$7.7 million, respectively, for the six months ended December 31,
2023, and $16.8 million and $9.6 million, respectively, for the six
months ended December 31, 2022. Handysize vessel operating costs
per day were $5,650 per day for the six months ended December 31,
2023 and $6,086 per day for the six months ended December 31, 2022.
Vessel operating costs per day were lower in the handysize segment
for the six months ended December 31, 2023 in comparison to the six
months ended December 31, 2022 due to lower maintenance as a result
of the sale of older vessels, partially offset by costs required to
manage ongoing repairs while we transition away from two and a half
year intermediary drydocks to five year drydocks, reducing capital
expenditure. Supramax/ultramax vessel operating costs were $5,624
per day for the six months ended December 31, 2023 and $5,260 per
day for the six months ended December 31, 2022. Vessel operating
costs per day were higher in the supramax/ultramax segment for the
six months ended December 31, 2023 in comparison to the six months
ended December 31, 2022 due to increased costs required to manage
ongoing repairs while we transition away from two and a half year
intermediary drydocks to five year drydocks, reducing capital
expenditure.
Gross profit was $15.9 million for the six
months ended December 31, 2023 and $61.5 million for the six months
ended December 31, 2022.
Other operating expense was $1.5 million for the
six months ended December 31, 2023 and $3.4 million for the six
months ended December 31, 2022. Other operating expense included a
reversal of an impairment loss on assets under construction of $0.3
million and an impairment loss on ships of $2.0 million for the six
months ended December 31, 2023. Other operating expense included an
impairment loss on ships of $2.4 million and an impairment on a
right-of-use asset of $1.0 million for the six months ended
December 31, 2022.
Administrative expense was $18.6 million for the
six months ended December 31, 2023 and $32.2 million for the six
months ended December 31, 2022. The decrease was due to $10.3
million in fees and expenses associated with the tender offer to
shareholders to purchase their shares that was completed in the
second half of 2022 and $6.7 million of expense associated with the
settlement of the forfeitable share plan that was terminated as
part of the transaction agreement.
Interest income was $1.8 million for the six
months ended December 31, 2023 and $2.0 million for the six months
ended December 31, 2022.
Interest expense was $8.1 million for the six
months ended December 31, 2023 and $9.8 million for the six months
December 31, 2022. The reduction was due to maturity of two loans
during the year and repayment of loans as a result of vessels sold
during the current year.
Income tax expense was $0.4 million for the six
months ended December 31, 2023 and $0.5 million for the six months
ended December 31, 2022.
Loss for the six months ended December 31, 2023
was $10.8 million compared to a profit of $17.6 million for the six
months ended December 31, 2022.
Unaudited Results for the Full Years
Ended December 31, 2023 and 2022
Revenue was $387.1 million for the year ended
December 31, 2023 and $460.5 million for year ended December 31,
2022. Vessel revenue was $226.0 million for the year ended December
31, 2023 and $430.0 million for the year ended December 31, 2022.
Revenue decreased due to weakening market conditions in the drybulk
business, partially offset by the sale of five handysize and four
supramax/ultramax vessels compared to the sale of a medium range
tanker in the first half of 2022 (included in the Other segment
under a bareboat charter).
Our handysize total revenue and
supramax/ultramax total revenue was $151.8 million and $232.5
million, respectively, for the year ended December 31, 2023 and
$159.9 million and $268.5 million, respectively, for the year ended
December 31, 2022. Handysize vessel revenue and supramax/ultramax
vessel revenue was $87.9 million and $138.1 million, respectively,
for the year ended December 31, 2023 and $159.5 million and $268.4
million, respectively, for the year ended December 31, 2022. The
results were negatively impacted by the weaker spot market rates.
Handysize ship sale revenue and supramax/ultramax ship sale revenue
was $63.8 million and $94.3 million, respectively, for the year
ended December 31, 2023 due to the sale of five handysize and four
supramax/ultramax vessels compared to no ship sales in these
segments for the same period in 2022.
Handysize TCE per day was $10,351 per day for
the year ended December 31, 2023 and $22,115 per day for the year
ended December 31, 2022. Supramax/ultramax TCE per day was $13,908
per day for the year ended December 31, 2023 and $25,788 per day
for the year ended December 31, 2022.
Cost of sales was $347.7 million for the year
ended December 31, 2023 and $293.7 million for the year ended
December 31, 2022. The increased costs are primarily as a result of
the sale of five handysize and four supramax/ultramax vessels in
2023 compared to the sale of one medium range tanker for the same
period in 2022 (included in the Other segment under a bareboat
charter), which was partially offset by income from forward freight
agreements in 2022 and lower spot charter-in rates on the
decreasing number of short-term charters during the twelve months
of 2023.
In the drybulk business, our handysize segment
and supramax/ultramax segment cost of sales was $142.5 million and
$208.2 million, respectively, for the year ended December 31, 2023
and $93.4 million and $172.6 million, respectively, for the year
ended December 31, 2022.
Our handysize voyage expenses and
supramax/ultramax voyage expenses was $25.4 million and $49.3
million, respectively, for the year ended December 31, 2023 and
$30.7 million and $60.4 million, respectively, for the year ended
December 31, 2022. Handysize charter hire expenses and
supramax/ultramax charter hire expenses were $13.3 million and
$13.6 million for the year ended December 31, 2023 and $12.1
million, and $46.8 million for the year ended December 31, 2022.
The decrease in the supramax/ultramax segment was as a result of a
decrease in short term charter-in vessels due to the reduction in
demand for drybulk vessels in 2023. Handysize vessel operating
costs and supramax/ultramax vessel operating costs were $28.8
million and $16.9 million for the year ended December 31, 2023 and
$31.6 million, and $18.2 million for the year ended December 31,
2022. Handysize vessel operating costs per day were $5,841 per day
for the year ended December 31, 2023 and $5,776 per day for the
year ended December 31, 2022. These increases were primarily due to
increased cost of lubricating oils, increased repairs to certain of
the older vessels and additional crew to manage ongoing repairs as
we transition away from two and a half year intermediary drydocks
to five year drydocks, reducing capital expenditure.
Supramax/ultramax vessel operating costs per day were $5,616 per
day for the year ended December 31, 2023 and $5,297 per day for the
year ended December 31, 2022. These increases were primarily due to
increased cost of lubricating oils, increased repairs on a small
number of vessels and additional crew to manage ongoing repairs as
we transition away from two and a half year intermediary drydocks
to five year drydocks, reducing capital expenditure.
Gross profit was $39.4 million for the year
ended December 31, 2023 and $166.8 million for the year ended
December 31, 2022.
Other operating (expense) income was an expense
of $1.4 million for the year ended December 31, 2023 and income of
$0.3 million for the year ended December 31, 2022. The other
operating expense is primarily due to the impairment loss on
vessels sold during the year ended December 31, 2023.
Administrative expense was $32.7 million for the
year ended December 31, 2023 and $48.1 million for the year ended
December 31, 2022. The decrease was due to $10.3 million in fees
and expenses associated with the tender offer to shareholders to
purchase their shares that was completed in the second half of 2022
and $8.1 million of expense associated with the settlement of the
forfeitable share plan that was terminated as part of the
transaction agreement.
Interest income was $2.8 million for the year
ended December 31, 2023 and $2.2 million for the year ended
December 31, 2022.
Interest expense was $17.1 million for the year
ended December 31, 2023 and $17.1 million for the year ended
December 31, 2022.
Income tax expense was $0.7 million for the year
ended December 31, 2023 and $0.8 million for the year ended
December 31, 2022.
Loss for the year ended December 31, 2023 was
$9.6 million and a profit of $103.4 million for the year ended
December 31, 2022.
Net cash flows generated from operating
activities was $155.1 million for the year ended December 31, 2023
and $186.0 million for the year ended December 31, 2022. Net cash
generated from investing activities was $1.2 million for the year
ended December 31, 2023 and was $0.1 million for the year ended
December 31, 2022. Net cash flows used in financing activities was
$147.5 million for the year ended December 31, 2023 and $243.1
million for the year ended December 31, 2022.
As of December 31, 2023, we had cash and cash
equivalents of $55.2 million and restricted cash of $8.7
million.
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 25 vessels consisting of 12 handysize drybulk carriers and
13 supramax/ultramax drybulk carriers. The Company is based in
Singapore, with offices in London, Durban, Tokyo 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 (18
Vessels)
|
Vessel Name |
|
Built |
|
Country of Build |
|
DWT |
|
Type of Employment |
|
Handysize – Eco |
|
|
|
|
|
|
|
|
| IVS Tembe |
|
2016 |
|
Japan |
|
37,740 |
|
IVS Commercial(1) |
| IVS Sunbird |
|
2015 |
|
Japan |
|
33,400 |
|
IVS Handysize Pool |
| IVS Thanda |
|
2015 |
|
Japan |
|
37,720 |
|
IVS Commercial(1) |
| IVS Phinda |
|
2014 |
|
Japan |
|
37,720 |
|
IVS Commercial(1) |
| IVS Sparrowhawk |
|
2014 |
|
Japan |
|
33,420 |
|
IVS Handysize Pool |
| Handysize |
|
|
|
|
|
|
|
|
| IVS Ibis(3) |
|
2012 |
|
Japan |
|
28,240 |
|
IVS Handysize Pool |
| IVS Kinglet(2) |
|
2011 |
|
Japan |
|
33,130 |
|
IVS Handysize Pool |
| IVS Magpie(2) |
|
2011 |
|
Japan |
|
28,240 |
|
IVS Handysize Pool |
| IVS Knot(2) |
|
2010 |
|
Japan |
|
33,140 |
|
IVS Handysize Pool |
| IVS Merlin |
|
2011 |
|
Japan |
|
38,468 |
|
IVS Handysize Pool |
| HB Imabari |
|
2024 |
|
Japan |
|
39,640 |
|
IVS Commercial(1) |
| Supramax/Ultramax –
Eco |
|
|
|
|
|
|
|
|
| IVS Prestwick |
|
2019 |
|
Japan |
|
61,300 |
|
IVS Supramax Pool |
| IVS Okudogo |
|
2019 |
|
Japan |
|
61,330 |
|
IVS Supramax Pool |
| IVS Phoenix(2) |
|
2019 |
|
Japan |
|
61,470 |
|
IVS Supramax Pool |
| IVS Swinley Forest |
|
2017 |
|
Japan |
|
60,490 |
|
IVS Supramax Pool |
| IVS Gleneagles |
|
2016 |
|
Japan |
|
58,070 |
|
IVS Supramax Pool |
| IVS North Berwick |
|
2016 |
|
Japan |
|
60,480 |
|
IVS Supramax Pool |
| IVS Wentworth |
|
2015 |
|
Japan |
|
58,090 |
|
IVS Supramax Pool |
Drybulk Carriers — Long-Term Charter-In
Fleet (7 Vessels)
|
Vessel Name |
|
Built |
|
Country of Build |
|
DWT |
|
Charter-in Period (4) |
|
|
Purchase Option Price (Millions) |
|
Type of Employment |
|
Handysize – Eco |
|
|
|
|
|
|
|
|
|
|
|
|
|
| IVS Kestrel(5) |
|
2014 |
|
Japan |
|
32,770 |
|
2023-24 |
|
$ |
- |
|
IVS Handysize Pool |
| Supramax/Ultramax –
Eco |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Aries Karin(6) |
|
2021 |
|
Japan |
|
64,230 |
|
2024-25 |
|
$ |
- |
|
IVS Supramax Pool |
| IVS Atsugi(7) |
|
2020 |
|
Japan |
|
62,660 |
|
2023-24 |
|
$ |
25.2 |
|
IVS Supramax Pool |
| IVS Pebble Beach(8) |
|
2020 |
|
Japan |
|
62,660 |
|
2023-24 |
|
$ |
25.2 |
|
IVS Supramax Pool |
| IVS Windsor(9) |
|
2016 |
|
Japan |
|
60,280 |
|
2023-26 |
|
$ |
- |
|
IVS Supramax Pool |
| IVS Crimson Creek(10) |
|
2014 |
|
Japan |
|
57,950 |
|
2023-24 |
|
$ |
- |
|
IVS Supramax Pool |
| IVS Naruo(11) |
|
2014 |
|
Japan |
|
60,030 |
|
2023-24 |
|
$ |
~12.0 |
|
IVS Supramax Pool |
|
|
|
|
(1) |
Commercially managed by Grindrod Shipping alongside the IVS
Handysize Pool. |
|
|
|
|
(2) |
IVS Knot, IVS Kinglet, IVS Magpie and IVS Phoenix 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 2036, respectively, and we
have an option to acquire IVS Knot, IVS Kinglet and IVS Magpie
commencing in 2021 and IVS Phoenix in 2023. We regard the vessels
as owned since we have retained the right to control the use of the
vessels. |
|
|
|
|
(3) |
IVS Ibis has been contracted for sale and is planned to be
delivered to the new owners on or about March 21, 2024. |
|
|
|
|
(4) |
Expiration date range represents the earliest and latest
re-delivery periods due to extension options. |
|
|
|
|
(5) |
Chartered-in until Q2 2024 with two one-year options to
extend. |
|
|
|
|
(6) |
Chartered-in until Q4 2024 with one-year option to extend. |
|
|
|
|
(7) |
Chartered-in until Q4 2024. The purchase option is exercisable
beginning in Q4 2022 and any time thereafter to expiry date,
subject to contract terms and conditions. The purchase option price
reduces with a linear depreciation of $1.0 million per year or
prorate. |
|
|
|
|
(8) |
Chartered-in until Q3 2024. The purchase option is exercisable
beginning in Q3 2022 and any time thereafter to expiry date,
subject to contract terms and conditions. The purchase option price
reduces with a linear depreciation of $1.0 million per year or
prorate. |
|
|
|
|
(9) |
Chartered-in until Q3 2024 with one one-year option and one
nine-month option to extend. |
|
|
|
|
(10) |
Chartered-in for a period of 12 to 15 months until January
2025. |
|
|
|
|
(11) |
Chartered-in until Q4 2024. The purchase option was exercised in
November 2023 and is subject to contract terms and conditions. The
option includes a Japanese Yen denominated component which has been
hedged at a rate of 142 Yen to $1. |
|
|
|
Unaudited Segment
Information
| |
|
Six months ended December 31, |
|
Year ended December 31, |
|
(In thousands of U.S. dollars) |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
Drybulk Carriers Business |
|
|
|
|
|
|
|
|
| Handysize
Segment |
|
|
|
|
|
|
|
|
|
Revenue |
$ |
79,921 |
|
$ |
71,119 |
|
$ |
151,768 |
|
$ |
159,934 |
|
| Cost of sales |
|
(77,597 |
) |
|
(48,258 |
) |
|
(142,522 |
) |
|
(93,418 |
) |
| Gross Profit |
|
2,324 |
|
|
22,861 |
|
|
9,246 |
|
|
66,516 |
|
| Supramax/Ultramax
Segment |
|
|
|
|
|
|
|
|
| Revenue |
$ |
118,497 |
|
$ |
117,473 |
|
$ |
232,500 |
|
$ |
268,463 |
|
| Cost of sales |
|
(109,187 |
) |
|
(80,451 |
) |
|
(208,225 |
) |
|
(172,588 |
) |
| Gross Profit |
|
9,310 |
|
|
37,022 |
|
|
24,275 |
|
|
95,875 |
|
Selected Historical and Statistical Data
of Our Operating FleetSet forth below are selected
historical and statistical data of our operating fleet for the six
months ended December 31, 2023 and 2022 and the year ended December
31, 2023 and 2022 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 and vessel operating 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.
| |
|
Six months ended December 31, |
|
Year ended December 31, |
|
(In thousands of U.S. dollars) |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
Drybulk Carriers Business |
|
|
|
|
|
|
|
|
| Handysize
Segment |
|
|
|
|
|
|
|
|
|
Calendar days(1) |
|
3,296 |
|
|
3,051 |
|
|
6,196 |
|
|
6,091 |
|
| Available days(2) |
|
3,251 |
|
|
2,967 |
|
|
6,124 |
|
|
5,980 |
|
| Operating days(3) |
|
3,204 |
|
|
2,874 |
|
|
6,044 |
|
|
5,826 |
|
|
Owned fleet operating days(4) |
|
2,228 |
|
|
2,583 |
|
|
4,776 |
|
|
5,210 |
|
|
Long-term charter-in days(5) |
|
184 |
|
|
- |
|
|
203 |
|
|
- |
|
|
Short-term charter-in days(6) |
|
792 |
|
|
291 |
|
|
1,065 |
|
|
616 |
|
| Fleet utilization(7) |
|
98.6 |
% |
|
96.9 |
% |
|
98.7 |
% |
|
97.4 |
% |
| TCE per day(8) |
$ |
10,182 |
|
$ |
19,161 |
|
$ |
10,351 |
|
$ |
22,115 |
|
| Vessel operating costs per
day(9) |
$ |
5,650 |
|
$ |
6,086 |
|
$ |
5,841 |
|
$ |
5,776 |
|
| |
|
|
|
|
|
|
|
|
| Supramax/Ultramax
Segment |
|
|
|
|
|
|
|
|
| Calendar days(1) |
|
3,324 |
|
|
3,845 |
|
|
6,573 |
|
|
8,210 |
|
| Available days(2) |
|
3,286 |
|
|
3,778 |
|
|
6,496 |
|
|
8,143 |
|
| Operating days(3) |
|
3,253 |
|
|
3,735 |
|
|
6,390 |
|
|
8,063 |
|
|
Owned fleet operating days(4) |
|
1,352 |
|
|
1,719 |
|
|
2,930 |
|
|
3,345 |
|
|
Long-term charter-in days(5) |
|
1,127 |
|
|
1,110 |
|
|
2,349 |
|
|
2,343 |
|
|
Short-term charter-in days(6) |
|
774 |
|
|
906 |
|
|
1,111 |
|
|
2,375 |
|
| Fleet utilization(7) |
|
99.0 |
% |
|
98.9 |
% |
|
98.4 |
% |
|
99.0 |
% |
| TCE per day(8) |
$ |
13,849 |
|
$ |
23,685 |
|
$ |
13,908 |
|
$ |
25,788 |
|
| Vessel operating costs per
day(9) |
$ |
5,624 |
|
$ |
5,260 |
|
$ |
5,616 |
|
$ |
5,297 |
|
| |
|
|
|
|
|
|
|
|
|
(1) |
Calendar days: total calendar days the vessels were in our
possession for the relevant period. |
| (2) |
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. |
| (3) |
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. |
| (4) |
Owned fleet operating days: the number of operating days in which
our owned fleet is operating for the relevant period. |
| (5) |
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 we
previously owned the vessels or 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. |
| (6) |
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. |
| (7) |
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. |
| (8) |
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” above for a discussion of TCE revenue and a
reconciliation of TCE revenue to revenue. |
| (9) |
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 and
excludes charter-in costs and charter-in days. Please see “Non-GAAP
Financial Measures” below for a discussion of vessel operating
costs per day. |
| |
|
Unaudited Condensed Consolidated
Statement of Financial Position
| |
31 December 2023 |
|
31 December 2022 |
| |
US$’000 |
|
US$’000 |
| ASSETS |
|
|
|
| Current
assets |
|
|
|
|
Cash and bank balances |
59,331 |
|
|
52,228 |
|
| Trade receivables |
6,702 |
|
|
11,290 |
|
| Contract assets |
2,906 |
|
|
1,313 |
|
| Other receivables and
prepayments |
18,070 |
|
|
25,066 |
|
| Due from related parties |
27 |
|
|
- |
|
| Derivative financial
instruments |
176 |
|
|
51 |
|
| Inventories |
10,755 |
|
|
15,278 |
|
| Tax recoverable |
109 |
|
|
- |
|
| Total current assets |
98,076 |
|
|
105,226 |
|
| |
|
|
|
| Non-current
assets |
|
|
|
| Restricted cash |
4,560 |
|
|
4,342 |
|
| Ships, property, plant and
equipment |
303,192 |
|
|
407,552 |
|
| Right-of-use assets |
35,244 |
|
|
26,039 |
|
| Interest in joint
ventures |
8 |
|
|
8 |
|
| Derivative financial
instruments |
423 |
|
|
- |
|
| Intangible assets |
4,907 |
|
|
186 |
|
| Goodwill |
7,924 |
|
|
- |
|
| Other receivables and
prepayments |
1,918 |
|
|
860 |
|
| Other investments |
3,613 |
|
|
3,714 |
|
| Deferred tax assets |
1,019 |
|
|
1,304 |
|
| Total non-current assets |
362,808 |
|
|
444,005 |
|
| |
|
|
|
| Total
assets |
460,884 |
|
|
549,231 |
|
| |
|
|
|
| LIABILITIES AND
EQUITY |
|
|
|
| Current
liabilities |
|
|
|
| Trade and other payables |
30,695 |
|
|
29,599 |
|
| Contract liabilities |
2,987 |
|
|
4,369 |
|
| Due to joint ventures /
related parties |
388 |
|
|
43 |
|
| Lease liabilities |
32,432 |
|
|
22,058 |
|
| Bank loans and other
borrowings |
18,578 |
|
|
33,330 |
|
| Retirement benefit
obligation |
125 |
|
|
125 |
|
| Derivative financial
instruments |
712 |
|
|
138 |
|
| Provisions |
277 |
|
|
592 |
|
| Income tax payable |
430 |
|
|
423 |
|
| Total current liabilities |
86,624 |
|
|
90,677 |
|
| |
|
|
|
| Non-current
liabilities |
|
|
|
| Trade and other payables |
1,153 |
|
|
140 |
|
| Lease liabilities |
1,373 |
|
|
4,055 |
|
| Bank loans and other
borrowings |
123,639 |
|
|
165,638 |
|
| Deferred tax liabilities |
761 |
|
|
- |
|
| Retirement benefit
obligation |
1,194 |
|
|
1,272 |
|
| Derivative financial
instruments |
20 |
|
|
- |
|
| Total non-current
liabilities |
128,140 |
|
|
171,105 |
|
| |
|
|
|
| Capital and
reserves |
|
|
|
| Share capital |
290,193 |
|
|
320,683 |
|
| Other equity and reserves |
(24,508 |
) |
|
(24,686 |
) |
| Accumulated losses |
(19,565 |
) |
|
(8,548 |
) |
| Total equity |
246,120 |
|
|
287,449 |
|
| |
|
|
|
| Total equity and
liabilities |
460,884 |
|
|
549,231 |
|
| |
|
|
|
Unaudited Condensed Consolidated
Statement of Profit or Loss
| |
|
Six months ended December 31, |
|
Year ended December 31, |
|
(In thousands of U.S. dollars, other than per share
data) |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
Revenue |
$ |
201,246 |
|
$ |
188,592 |
|
$ |
387,096 |
|
$ |
460,460 |
|
| Cost of
sales |
|
|
|
|
|
|
|
|
| Voyage expenses |
|
(38,807 |
) |
|
(44,715 |
) |
|
(74,614 |
) |
|
(91,104 |
) |
| Vessel operating costs |
|
(19,566 |
) |
|
(24,799 |
) |
|
(43,001 |
) |
|
(46,901 |
) |
| Charter hire costs |
|
(19,636 |
) |
|
(24,393 |
) |
|
(26,952 |
) |
|
(58,926 |
) |
| Depreciation of ships,
drydocking and plant and equipment– owned assets |
|
(11,039 |
) |
|
(15,024 |
) |
|
(24,824 |
) |
|
(30,498 |
) |
| Depreciation of ships and ship
equipment – right-of-use assets |
|
(14,732 |
) |
|
(18,149 |
) |
|
(30,343 |
) |
|
(35,676 |
) |
| Other expenses |
|
(481 |
) |
|
(75 |
) |
|
(555 |
) |
|
(696 |
) |
| Cost of ship sale |
|
(81,097 |
) |
|
28 |
|
|
(147,440 |
) |
|
(29,897 |
) |
| Gross
profit |
|
15,888 |
|
|
61,465 |
|
|
39,367 |
|
|
166,762 |
|
| Other operating (expenses)
income |
|
(1,477 |
) |
|
(3,442 |
) |
|
(1,352 |
) |
|
341 |
|
| Administrative expense |
|
(18,644 |
) |
|
(32,179 |
) |
|
(32,653 |
) |
|
(48,069 |
) |
| Share of losses of joint
ventures |
|
- |
|
|
(6 |
) |
|
- |
|
|
(5 |
) |
| Interest income |
|
1,814 |
|
|
1,959 |
|
|
2,798 |
|
|
2,228 |
|
| Interest expense |
|
(8,059 |
) |
|
(9,759 |
) |
|
(17,099 |
) |
|
(17,133 |
) |
| (Loss) profit before
taxation |
|
(10,478 |
) |
|
18,038 |
|
|
(8,939 |
) |
|
104,124 |
|
| Income tax expense |
|
(391 |
) |
|
(466 |
) |
|
(683 |
) |
|
(757 |
) |
| (Loss) profit for the
period |
|
(10,869 |
) |
|
17,572 |
|
|
(9,622 |
) |
|
103,367 |
|
| |
|
|
|
|
|
|
|
|
| (Loss)
profit per share attributable to owners of the
Company: |
|
|
|
|
|
|
|
Basic |
$ |
(0.56 |
) |
$ |
0.92 |
|
$ |
(0.49 |
) |
$ |
5.45 |
|
|
Diluted |
$ |
(0.56 |
) |
$ |
0.92 |
|
$ |
(0.49 |
) |
$ |
5.45 |
|
| |
|
|
|
|
|
|
|
|
Unaudited Condensed Consolidated
Statement of Cash Flows
|
For the twelve months ended 31 December |
2023 |
|
2022 |
| |
US$’000 |
|
US$’000 |
| Operating
activities |
|
|
|
|
(Loss) profit for the period |
(9,622 |
) |
|
103,367 |
|
| Adjustments for: |
|
|
|
|
Share of losses of joint ventures |
- |
|
|
5 |
|
|
Gain on disposal of ships |
(10,666 |
) |
|
(84 |
) |
|
Gain on disposal of plant and equipment, furniture and fittings and
motor vehicles |
(12 |
) |
|
(36 |
) |
|
Gain on disposal of right-of-use assets |
(3 |
) |
|
- |
|
|
Depreciation and amortisation |
57,654 |
|
|
67,275 |
|
|
Impairment loss (reversal of impairment) recognised on ships |
2,000 |
|
|
(1,707 |
) |
|
Impairment loss recognised on right-of-use assets |
- |
|
|
985 |
|
|
Impairment loss (reversal of impairment) recognised on financial
assets |
53 |
|
|
(45 |
) |
|
Provision for onerous contracts reversed |
(315 |
) |
|
(427 |
) |
|
Reversal of impairment loss recognised on asset under
construction |
(310 |
) |
|
- |
|
|
Recognition of share-based payments expense |
- |
|
|
8,134 |
|
|
Net foreign exchange gain |
(485 |
) |
|
(171 |
) |
|
Interest expense |
17,099 |
|
|
17,133 |
|
|
Interest income |
(2,798 |
) |
|
(2,228 |
) |
|
Components of defined benefit costs recognized in profit or
loss |
146 |
|
|
159 |
|
|
Income tax expense |
683 |
|
|
757 |
|
| Operating cash flows before
movements in working capital and ships |
53,424 |
|
|
193,117 |
|
|
Inventories |
4,520 |
|
|
(1,371 |
) |
|
Trade receivables, other receivables and prepayments |
11,316 |
|
|
(5,556 |
) |
|
Contract assets |
(1,593 |
) |
|
2,373 |
|
|
Trade and other payables |
(8,230 |
) |
|
(5,515 |
) |
|
Contract liabilities |
(1,382 |
) |
|
(4,072 |
) |
|
Due to related parties |
458 |
|
|
49 |
|
| Operating cash flows before
movement in ships |
58,513 |
|
|
179,025 |
|
|
Capital expenditure on ships |
(38,076 |
) |
|
(9,306 |
) |
|
Proceeds from disposal of ships |
152,011 |
|
|
29,509 |
|
| Net cash generated from
operations |
172,448 |
|
|
199,228 |
|
|
Interest paid |
(16,938 |
) |
|
(14,553 |
) |
|
Interest received |
2,363 |
|
|
1,786 |
|
|
Income tax paid |
(2,750 |
) |
|
(432 |
) |
| Net cash flows
generated from operating activities |
155,123 |
|
|
186,029 |
|
| |
|
|
|
| Investing
activities |
|
|
|
|
Repayment of loans and amount due from joint ventures |
- |
|
|
39 |
|
|
Purchase of plant and equipment |
(652 |
) |
|
(113 |
) |
|
Purchase of intangible assets |
(212 |
) |
|
(126 |
) |
|
Proceeds from disposal of plant and equipment |
16 |
|
|
298 |
|
|
Payment for acquisition of subsidiary, net of cash acquired |
2,048 |
|
|
- |
|
| Net cash flows
generated from investing activities |
1,200 |
|
|
98 |
|
| Financing
activities |
|
|
|
|
Return of share capital |
(32,440 |
) |
|
- |
|
|
Payment of principal portion of bank loans and other
borrowings |
(56,912 |
) |
|
(49,850 |
) |
|
Principal repayments on lease liabilities |
(58,276 |
) |
|
(56,930 |
) |
|
Restricted cash |
1,347 |
|
|
(485 |
) |
|
Dividends paid |
(1,169 |
) |
|
(135,877 |
) |
| Net cash flows used in
financing activities |
(147,450 |
) |
|
(243,142 |
) |
| |
|
|
|
| Net increase (decrease) in
cash and cash equivalents |
8,873 |
|
|
(57,015 |
) |
| Cash and cash equivalents at
the beginning of the period |
46,561 |
|
|
104,243 |
|
| Effect of exchange rate
changes on the balance of cash held in foreign currencies |
(205 |
) |
|
(667 |
) |
| Cash and cash
equivalents at the end of the period |
55,229 |
|
|
46,561 |
|
| |
|
|
|
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
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 revenue to TCE
revenue for the six month periods ended December 31, 2023 and
2022.
| |
|
Six months ended December 31, |
| |
|
2023 |
|
2022 |
|
(In thousands of U.S. dollars) |
|
Revenue |
|
VoyageExpenses |
|
TCERevenue |
|
Revenue |
|
VoyageExpenses |
|
TCERevenue |
|
Vessel revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Handysize |
|
45,399 |
|
|
(12,776 |
) |
|
32,623 |
|
|
70,887 |
|
|
(15,817 |
) |
|
55,070 |
|
|
Supramax/ultramax |
|
71,081 |
|
|
(26,031 |
) |
|
45,050 |
|
|
117,362 |
|
|
(28,898 |
) |
|
88,464 |
|
| Ship sale revenue |
|
81,900 |
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
| Other revenue |
|
2,866 |
|
|
|
|
|
|
|
343 |
|
|
|
|
|
|
| Revenue |
|
201,246 |
|
|
|
|
|
|
|
188,592 |
|
|
|
|
|
|
Below is a reconciliation from revenue to TCE
revenue for the twelve month periods ended December 31, 2023 and
2022.
| |
|
Year ended December 31, |
| |
|
2023 |
|
2022 |
|
(In thousands of U.S. dollars) |
|
Revenue |
|
VoyageExpenses |
|
TCERevenue |
|
Revenue |
|
VoyageExpenses |
|
TCERevenue |
|
Vessel revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Handysize |
|
87,918 |
|
|
(25,355 |
) |
|
62,563 |
|
|
159,524 |
|
|
(30,683 |
) |
|
128,841 |
|
|
Supramax/ultramax |
|
138,128 |
|
|
(49,259 |
) |
|
88,869 |
|
|
268,352 |
|
|
(60,420 |
) |
|
207,932 |
|
|
Other |
|
- |
|
|
|
|
|
|
|
2,082 |
|
|
|
|
|
|
| Ship sale revenue |
|
158,105 |
|
|
|
|
|
|
|
29,981 |
|
|
|
|
|
|
| Other revenue |
|
2,945 |
|
|
|
|
|
|
|
521 |
|
|
|
|
|
|
| Revenue |
|
387,096 |
|
|
|
|
|
|
|
460,460 |
|
|
|
|
|
|
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.
EBITDA and Adjusted EBITDA
EBITDA is defined as earnings before income tax
expense, interest income, interest expense, share of profits
(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-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 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) profit for the period to EBITDA and Adjusted EBITDA
for the six month periods ended December 31, 2023 and 2022 and
twelve months ended December 31, 2023 and 2022.
| |
|
Six months ended December 31, |
|
Year ended December 31, |
|
(In thousands of U.S. dollars) |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
(Loss) profit for the period |
$ |
(10,869 |
) |
$ |
17,572 |
|
$ |
(9,622 |
) |
$ |
103,367 |
|
| Adjusted for: |
|
|
|
|
|
|
|
|
|
Income tax expense |
|
391 |
|
|
466 |
|
|
683 |
|
|
757 |
|
|
Interest income |
|
(1,814 |
) |
|
(1,959 |
) |
|
(2,798 |
) |
|
(2,228 |
) |
|
Interest expense |
|
8,059 |
|
|
9,759 |
|
|
17,099 |
|
|
17,133 |
|
|
Share of losses of joint ventures |
|
- |
|
|
6 |
|
|
- |
|
|
5 |
|
|
Depreciation and amortization |
|
27,299 |
|
|
33,732 |
|
|
57,654 |
|
|
67,275 |
|
| |
|
|
|
|
|
|
|
|
| EBITDA |
|
23,066 |
|
|
59,576 |
|
|
63,016 |
|
|
186,309 |
|
| |
|
|
|
|
|
|
|
|
| Adjusted for |
|
|
|
|
|
|
|
|
|
Impairment (reversal of impairment) recognized on ships |
|
2,000 |
|
|
2,366 |
|
|
2,000 |
|
|
(1,707 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairment loss recognized on right-of-use assets |
|
- |
|
|
985 |
|
|
- |
|
|
985 |
|
|
Tender offer and related expenses |
|
- |
|
|
10,307 |
|
|
- |
|
|
10,307 |
|
|
Reversal of impairment loss recognized on asset under
construction |
|
(310 |
) |
|
- |
|
|
(310 |
) |
|
- |
|
|
Share-based compensation |
|
- |
|
|
6,742 |
|
|
- |
|
|
8,134 |
|
| |
|
|
|
|
|
|
|
|
| Adjusted
EBITDA |
|
24,756 |
|
|
79,976 |
|
|
64,706 |
|
|
204,028 |
|
Adjusted net income and Adjusted Earnings per
share
Adjusted net income is defined as profit for the
period attributable to the owners of the Company adjusted for
reversal of impairment loss recognized on ships, impairment loss
recognized on goodwill and intangibles, reversal of impairment loss
recognized on right-of-use assets, impairment loss on net disposal
group, loss on disposal of business, share based compensation and
fees incurred for shareholder-related transactions. Adjusted
Earnings per share represents this figure divided by the weighted
average number of ordinary shares outstanding for the period.
Adjusted net income is used by management for
forecasting, making operational and strategic decisions, and
evaluating current company performance. It is also one of the
inputs used to calculate the variable amount that will be returned
to shareholders in the form of quarterly dividends and/or share
repurchases. Adjusted net income is not recognized by IFRS, and
should not be considered in isolation or used as alternatives to
profit for the period or any other indicator of our operating
performance.
Our presentation of Adjusted net income 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. We consider Adjusted net income to be
useful to management and investors because it eliminates items that
are unrelated to the overall operating performance and that may
vary significantly from period to period. Identifying these
elements will facilitate comparison of our operating performance to
the operating performance of our peers. The definitions of Adjusted
net income used by us may not be comparable to similar measures
used by other companies.
The table below presents the reconciliation
between (loss) profit for the period attributable to the owners of
the Company to Adjusted net income for the six month periods ended
December 31, 2023 and 2022 and twelve months ended December 31,
2023 and 2022.
| |
|
Six months ended December 31, |
|
Year ended December 31, |
|
(In thousands of U.S. dollars) |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
(Loss) profit for the period |
$ |
(10,869 |
) |
$ |
17,572 |
|
$ |
(9,622 |
) |
$ |
103,367 |
|
| Adjusted for: |
|
|
|
|
|
|
|
|
|
|
Impairment (reversal of impairment) loss recognized on ships |
|
2,000 |
|
|
2,366 |
|
|
2,000 |
|
|
(1,707 |
) |
|
Impairment loss recognized on right-of-use assets |
|
- |
|
|
985 |
|
|
- |
|
|
985 |
|
|
Tender offer and related expenses |
|
- |
|
|
10,307 |
|
|
- |
|
|
10,307 |
|
|
Reversal of impairment loss recognized on asset under
construction |
|
(310 |
) |
|
- |
|
|
(310 |
) |
|
- |
|
|
Share based compensation |
|
- |
|
|
6,742 |
|
|
- |
|
|
8,134 |
|
| Adjusted net (loss)
income |
|
(9,179 |
) |
|
37,972 |
|
|
(7,932 |
) |
|
121,086 |
|
| |
|
|
|
|
|
|
|
|
|
| Weighted average number of
shares on which the profit per share and adjusted earnings per
share has been calculated |
|
19,575,317 |
|
|
19,078,551 |
|
|
19,524,087 |
|
|
18,949,972 |
|
| |
|
|
|
|
|
|
|
|
|
| Basic (loss) profit per
share |
$ |
(0.56 |
) |
$ |
0.92 |
|
$ |
(0.49 |
) |
$ |
5.45 |
|
| |
|
|
|
|
|
|
|
|
|
| Basic adjusted (loss) earnings
per share |
$ |
(0.47 |
) |
$ |
1.99 |
|
$ |
(0.41 |
) |
$ |
6.39 |
|
Headline earnings and Headline earnings per
share
The Johannesburg Stock Exchange, or JSE,
requires that we calculate and publicly disclose Headline earnings
per share and diluted Headline earnings per share. Headline
earnings per share is calculated using net income which has been
determined based on IFRS. Accordingly, this may differ to the
Headline earnings 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 for the period represents
profit 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 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) profit for the period attributable to owners of the
Company to Headline earnings for the six month periods ended
December 31, 2023 and 2022 and twelve months ended December 31,
2023 and 2022.
| |
|
Six months ended December 31, |
|
Year ended December 31, |
|
(In thousands of U.S. dollars, except
per share data) |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
(Loss) profit for the period |
$ |
(10,869 |
) |
$ |
17,572 |
|
$ |
(9,622 |
) |
$ |
103,367 |
|
| Adjusted for: |
|
|
|
|
|
|
|
|
|
|
Impairment (reversal of impairment) loss recognized on ships |
|
2,000 |
|
|
2,366 |
|
|
2,000 |
|
|
(1,707 |
) |
|
Impairment loss recognized on right-of-use assets |
|
- |
|
|
985 |
|
|
- |
|
|
985 |
|
|
Reversal of impairment loss recognized on asset under
construction |
|
(310 |
) |
|
- |
|
|
(310 |
) |
|
- |
|
| Headline (loss)
earnings |
|
(9,179 |
) |
|
20,923 |
|
|
(7,932 |
) |
|
102,645 |
|
| |
|
|
|
|
|
|
|
|
|
| Weighted average number of
shares on which the profit per share and headline earnings per
share has been calculated |
|
19,575,317 |
|
|
19,078,551 |
|
|
19,524,087 |
|
|
18,949,972 |
|
| |
|
|
|
|
|
|
|
|
|
| Basic (loss) profit per
share |
$ |
(0.56 |
) |
$ |
0.92 |
|
$ |
(0.49 |
) |
$ |
5.45 |
|
| |
|
|
|
|
|
|
|
|
|
| Basic headline (loss) earnings
per share |
$ |
(0.47 |
) |
$ |
1.10 |
|
$ |
(0.41 |
) |
$ |
5.42 |
|
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 the drybulk market, and the duration of
these effects; cyclicality of the drybulk market, including general
drybulk shipping market conditions and trends, including
fluctuations in charter hire rates and vessel values; changes in
supply and demand in the drybulk shipping industry, 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 industry; seasonal
fluctuations within the drybulk industry; 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; 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, including the recent conflicts
between Russia and Ukraine and tensions between China and Taiwan;
fluctuations in interest rates and foreign exchange; 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; 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,
2022 filed with the Securities and Exchange Commission on
March 23, 2023. 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:Edward ButteryCEOGrindrod Shipping
Holdings Ltd.1 Temasek Avenue, #10-02 Millenia Tower, Singapore,
039192Email: ir@grindrodshipping.com Website:
www.grinshipping.com |
Investor Relations: Email:
ir@grindrodshipping.com |
Grindrod Shipping (NASDAQ:GRIN)
Graphique Historique de l'Action
De Nov 2024 à Déc 2024
Grindrod Shipping (NASDAQ:GRIN)
Graphique Historique de l'Action
De Déc 2023 à Déc 2024
