Wednesday, March 25, 2009
Aries Maritime Transport Limited Announces Fourth Quarter and Full Year 2008 Financial Results
Wednesday, 25 March 2009
Aries Maritime Transport Limited yesterday reported its unaudited financial results for the three and twelve months ended December 31, 2008. The following financial review discusses the results for the three months ended December 31, 2008, compared with the results for the three months ended December 31, 2007 as well as results for the twelve months ended December 31, 2008, compared with the results for the twelve months ended December 31, 2007. In June 2008, Aries completed the sale of its three oldest vessels, the Energy 1, MSC Oslo and the Arius, which resulted in a gain on sale of $13.6 million during the second quarter of 2008. The results for these vessels and related gain on disposal are reported as discontinued operations.
Fourth Quarter Results
Revenues of $19.2 million from continuing operations were recorded for the three months ended December 31, 2008, compared to revenues of $19.8 million recorded for the three months ended December 31, 2007. Excluding deferred revenue due to the assumption of charters associated with certain vessel acquisitions as well as commissions and voyage expenses, total revenues were $16.5 million and $18.3 million for the three month periods ended December 31, 2008 and December 31, 2007, respectively. The decrease in revenues is primarily attributable to lower utilization for the Saronikos Bridge and the Nordanvind as well as lower charter rates for the MSC Seine and the Chinook during the three months ended December 31, 2008, compared to the three months ended December 31, 2007. Vessel operating days totalled 1,104 for both quarters. The Company defines operating days as the total days the vessels were in the Company's possession for the relevant period. Total revenue days for the three months ended December 31, 2008, were 1,018 and total revenue days for the three months ended December 31, 2007, were 1,007. The Company defines revenue days as the total days the vessels were not off hire or out of service.
Net loss from continuing operations was $40.5 million or $1.41 basic and diluted loss per share, for the three months ended December 31, 2008, compared to a net loss of $5.8 million, or $0.21 basic and diluted loss per share, recorded for the three months ended December 31, 2007. The results for the fourth quarter of 2008 include a $30.1 million non-cash impairment charge on the value of the Company's three container vessels as well as a $5.8 million non-cash loss from the change in the fair value of derivatives. The results for the same period of 2007 include a $2.5 million non-cash loss from the change in the fair value of derivatives.
Net loss from continuing and discontinued operations for the three months ended December 31, 2008, was $42 million, or $1.46 basic and diluted loss per share, compared to a net loss of $7.0 million, or $0.25 basic and diluted loss per share, recorded for the three months ended December 31, 2007.
Adjusted EBITDA for the three months ended December 31, 2008, was $6.5 million compared to $7.2 million for the three months ended December 31, 2007. (Please refer to the Summary of Selected Data table later in this document for a reconciliation of Adjusted EBITDA to net income.)
Jeff Parry, Chief Executive Officer, commented, ``During the fourth quarter and year-to-date, Aries' new management team continued to take proactive measures aimed at improving the Company's financial performance. Specifically, our wholly owned technical management subsidiary, AMT Management, has become a fully licensed ship manager. In accomplishing this important goal, we have strengthened our ability to maintain a cost efficient operating structure and increase the utilization of our diversified fleet. We also continued to implement our period charter approach through new contracts for two double-hull products tankers. Based on our progress to date, the Company posted an increase in Adjusted EBITDA to $6.5 million for the fourth quarter of 2008 from $2.1 million for the third quarter of 2008. Management remains dedicated to improving the Company's ship operations as we continue to execute our comprehensive turnaround plan. Going forward, we will maintain our focus on positioning Aries for long-term success and enhancing shareholder value.''
Twelve-Month Results
Revenues of $81.3 million from continuing operations were recorded for the twelve months ended December 31, 2008, compared to revenues of $81.1 million recorded for the twelve months ended December 31, 2007. Excluding deferred revenue due to the assumption of charters associated with certain vessel acquisitions as well as commissions and voyage expenses, total revenues were $64.8 million and $70.9 million for the twelve month periods ended December 31, 2008, and December 31, 2007, respectively. The decrease in revenues is primarily attributable to lower utilization as well as lower charter rates for certain vessels in the Company's fleet during the twelve months ended December 31, 2008, compared to the twelve months ended December 31, 2007. During the twelve months ended December 31, 2008, total vessel operating days were 4,392 compared to total vessel operating days of 4,380 for the twelve months ended December 31, 2007. Total revenue days for the twelve months ended December 31, 2008, and December 31, 2007, were 4,100 and 4,159, respectively.
Net loss from continuing operations was $48.7 million or $1.70 basic and diluted loss per share, for the twelve months ended December 31, 2008, compared to net loss of $1.9 million, or $0.07 basic and diluted loss per share, recorded for the twelve months ended December 31, 2007. The results for the twelve months ended December 31, 2008, include a $30.1 million non-cash impairment charge on the value of the Company's three container vessels and a $6.5 million non-cash loss from the change in the fair value of derivatives. Results for the twelve months ended December 31, 2007 include a $4.1 million non-cash loss from the change in the fair value of derivatives.
Net loss from continuing and discontinued operations for the twelve months ended December 31, 2008, was $39.4 million, or $1.38 basic and diluted loss per share, compared to a net loss of $8.7 million, or $0.31 basic and diluted loss per share, recorded for the twelve months ended December 31, 2007.
Adjusted EBITDA for the twelve months ended December 31, 2008 was $24.6 million compared to $40.8 million for the twelve months ended December 31, 2007.
Fleet Report
Aries operates a fleet of nine double-hull products tankers and three container ships. Currently, nine of the Company's 12 vessels are secured on period charters with established international charterers. The charters have remaining periods ranging from approximately 0.1 to 1.75 years. Charters for two of Aries' products tanker vessels currently have profit-sharing components.
On October 2, 2008, Aries announced it secured a period charter for the High Land, a 1992-built products tanker, and the High Rider, a 1991-built products tanker, with IPG for 12 months. The net rate for both vessels has been renegotiated to $14,822.50 per day for the High Land and $15,015 per day for the High Rider pending certain oil major approvals.
Source: Aries Maritime Transport Ltd.
0 comments:
Post a Comment