UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE
13A-16 OR 15D-16 OF THE SECURITIES EXCHANGE ACT OF 1934
For the month of February 2024
Commission File Number 001-38440
Grindrod Shipping Holdings Ltd.
1 Temasek Avenue
#10-02 Millenia Tower
Singapore 039192
(Address of principal executive offices)
Indicate by check mark whether the registrant files
or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F x Form 40-F
¨
INFORMATION CONTAINED IN THIS FORM 6-K REPORT
On February 28, 2024, Grindrod
Shipping Holdings Ltd. (the “Company”) issued a press release announcing the Company’s financial results for the Second
Half and Full Year ended December 31, 2023. A copy of the press release is filed as Exhibit 99.1 to this Report on Form 6-K.
SIGNATURES
Pursuant to the requirements of the Securities Exchange
Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| |
GRINDROD SHIPPING HOLDINGS LTD. |
| |
|
| Dated: February 28, 2024 |
/s/ Edward Buttery |
| |
Name: Edward Buttery |
| |
Title: Chief Executive Officer |
Exhibit 99.1
GRINDROD SHIPPING HOLDINGS LTD. ANNOUNCES
UNAUDITED FINANCIAL RESULTS FOR THE SECOND HALF
(1) AND FULL YEAR
ENDED DECEMBER 31, 2023
Singapore, February 28, 2024: —
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 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 expenses 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 expenses 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 Fleet
Set 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 | | |
Voyage Expenses | | |
TCE Revenue | | |
Revenue | | |
Voyage Expenses | | |
TCE Revenue | |
| 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 | | |
Voyage Expenses | | |
TCE Revenue | | |
Revenue | | |
Voyage Expenses | | |
TCE Revenue | |
| 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 Buttery
CEO
Grindrod Shipping Holdings Ltd.
1 Temasek Avenue, #10-02 Millenia Tower,
Singapore, 039192
Email: ir@grindrodshipping.com
Website: www.grinshipping.com |
Investor Relations:
Email: ir@grindrodshipping.com |
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