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Thursday, May 14, 2009

Goldenport sees revenue of $176 mln for 2009, '10, '11


Thursday, 14 May 2009

Goldenport released yesterday the update on the trading of its fleet as of 12 May 2009 and the Interim Management Statement covering the period from 1 January 2009. Assuming earliest charter expiration, the estimated total revenue for the years 2009, 2010 and 2011 deriving from contracts already fixed for the operational part of the fleet is US$ 176 million (US$ 174 million as of 9 March 2009). This calculation excludes the nine new-build vessels for which we expect delivery in the future.
CEO Statement:
Captain Paris Dragnis, Founder and Chief Executive Officer of the Company, commented:
"The crisis that commenced in the fourth quarter of 2008 continued into the first quarter of 2009, which was one of the most challenging periods for the global economy, the financial markets and for the shipping industry.
"We are pleased to report that our proactive and defensive management initiatives safeguarded our Company during this difficult period and positioned it to benefit from the eventual market recovery.
"During the first months of 2009 we optimized the employment of our container fleet by shifting contracts fixed during 2008 on older vessels of our fleet to younger vessels that were re-opening for rechartering. This strategy enabled us to maintain profitable employment for our younger tonnage in a period where a large portion of the global fleet is idle. The older and fully depreciated vessels, on which we exchanged their charters, are likely to be sold for scrap further strengthening our balance sheet with the relevant proceeds.
"We also continued with our planned fleet expansion, taking delivery of two vessels, a new-build dry-bulk and a reconstructed container vessel, both of which commenced their pre-agreed time charters. Taking advantage of the weak market conditions, we acquired a 1995 built container vessel which commenced its operation within April. The addition of these three vessels to our operational fleet expands our revenue base and profit generation potential. Finally, we also sold at a profit a 1977 built and fully depreciated dry-bulk carrier further adding to our cash reserves.
"In the present environment of market volatility and uncertainty, we are particularly pleased to report strong forward coverage for our fleet especially in the container segment where, assuming earliest charter expiration, 94% of the available days for 2009 and 63% for 2010 are already fixed under period employment with first class charterers.
"In the next few months several of our existing vessels become debt free. This will enable us to seek refinancing for these vessels enhancing our cash position and reinforcing our ability to seek attractive acquisition opportunities, as in today's market we could acquire second hand vessels at much more reasonable prices compared to before. Our Company is in a strong financial condition given that as of 31 March 2009 our net debt was only US$ 134.7 million and our net debt to book capitalisation was 33.9%, a moderate figure for our industry."
Fleet utilisation for the period of 94.2% (97.5% for 2008) would have been higher, but  the vessel 'Procyon' was delivered to the Company on 4 March 2009 and was not  operational as at the end of the quarter and the vessel 'MSC Socotra'  experienced a technical problem which although claimable still affects the utilisation.
Given that the 'Procyon' commenced operation during April 2009 and that the vessel 'MSC Socotra' was operational during the second quarter and is likely to be sold for scrap after May 2009, the Company expects the fleet utilisation to rise.
The Company has repaid US$ 10.8 million of scheduled loan instalments and has drawn-down US$ 10.1  million of previously committed bank debt in order to finance the new building programme and US$ 6.2 million in order to finance the acquisition of the vessel 'Procyon'.
In January 2009, the Company also refinanced existing debt of US$38.1 million, of which US$33.1  million  was maturing within 2009.
As of 31 March the net debt was US$ 134.7 million (US$ 116.2 million as of 31 December 2008) and net debt to book capitalisation was 33.9% (30.5% as of 31 December 2008).
Vessel Deliveries
•    On 11 February 2009 the Company took delivery of the 53,800 DWT new bulk carrier 'Marie-Paule' which commenced its agreed three-year time charter;
•    On 23 February 2009 the Company delivered the reconstructed vessel 'MSC Fortunate' to the charterer to commence a four-year time charter.
Vessel Acquisitions - Rescheduling of Deliveries
•    On 26 January 2009 the Company announced that it had reached an agreement with COSCO (Zhoushan) Shipyard Co., Ltd, to reschedule the delivery dates of the four new-build 57,000 DWT bulk carriers on order with the yard, at no additional cost. Pursuant to the rescheduling, the delivery dates for those four vessels will now take place between four and eighteen  months after their originally agreed delivery dates in late 2009. Two vessels are now expected to be delivered in the first half 2010 and the other two in the first half of 2011.  The  existing  charter contracts remain valid and will commence upon delivery of the respective vessels. The already secured bank financing remains in place.
•    On 4 March 2009, the Company acquired the vessel NYK Procyon, a 1995-built container vessel with carrying capacity of 4,953 TEU, for a total consideration of US$ 10.5 million.
Vessel disposal
•    On 12 February 2009 the fully depreciated bulk carrier vessel 'Athos' (built 1977) was sold at a profit. The Company has arranged with the charterer to terminate the charter contract earlier than initially agreed and received for this a considerable cash consideration.

Source: Goldenport Holdings Inc

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