Sinon activez ce lien:
?code=9c8125c1efbb5ead09898213bc5d01fd&addr=worldshippingnews.abcd123%40blogger.com&
TBS International plc Reports Second Quarter 2010 financial results and six months
TBS International plc announced Friday its financial and operating results for the second quarter and six months ended June 30, 2010. Management Commentary
Joseph E. Royce, Chairman, Chief Executive Officer and President stated:
“TBS’ Second Quarter of 2010 started with a continuation of the
improving freight rates experienced in Q1 2010 for the carriage of bulk
and breakbulk cargoes. Demand for aggregates in the Middle East
increased with expanded imports by Kuwait. Our carriage of sugar, salt,
and grain cargoes to Nigeria were stable throughout the quarter.
“Our multipurpose tweendeckers showed improvement in both cargo volumes
and freight rates as our traditional customer base increased exports of
steel, liner, project and general cargoes, restoring operational and
rotational balance. Cargo volumes were solid on our trade route from
Asia to South America with all vessels filled to capacity. Exports of
minerals and metals from the west coast of South America to Asia stayed
strong even in the face of reduced iron ore imports by China. Steel
parcel exports by our long-standing Brazilian clients remained firm
although diminished somewhat by domestic demand.
“Between May 17, 2010 and July 15, 2010, the Baltic Dry Index, or BDI,
the industry indicator for spot dry bulk freight rates, experienced a
continuous slide from a value of 3,939 down to 1,700, declining by about
57%. This regression in the dry bulk market freight rates impacted the
TBS fleet, especially our bulk carriers and the impact is continuing in
Q3 2010. However, market freight rates in our sector appear to have
stabilized in recent weeks.
“Despite the adversities just mentioned, overall in Q2 2010, top line
revenues, average daily Time Charter Equivalent, voyage earnings and
EBITDA showed improvement over Q2 2009. Our income from operations,
excluding the loss of $5.2 million on the M/V Savannah Belle, also
improved to $0.8 million for Q2 2010 from a loss of $12.7 million in Q2
2009.
We incurred the following non-cash charges during the quarter:
– $5.2 million on the vessel M/V Savannah Belle that was held for sale
– $3.3 million of non-cash equity compensation granted to employees
Together these items represented $(0.28) of the $(0.32) loss per share.
“We are on track with our fleet renewal and expansion program. In July
2010, we sold the M/V Savannah Belle, the smallest handysize bulk
carrier in TBS’ fleet, we expect to launch the M/V Comanche Maiden on
August 12 and anticipate we will take delivery of our third newbuilding,
the M/V Montauk Maiden, in September.
“We continue to capitalize on the alliances we built during the past
year to expand the TBS brand and Five Star Service in Latin America and
Africa, which we view as emerging continents, rich in energy and mineral
resources that can sustain viable growth for decades to come. Last
month, our Log.Star joint venture obtained an operational license in
Brazil to provide domestic shipping services meeting the growing demand
for a Brazilian coastal and Amazon River domestic transportation
service. This joint venture capitalizes on our domestic market
knowledge, our international breakbulk shipping expertise and our long
standing customer relationships enabling us to enter a new market
segment with growth potential.”
Ferdinand V. Lepere, Executive Vice President and Chief Financial
Officer, commented: “As already announced on May 7, 2010, TBS
successfully renegotiated its credit facilities and is in compliance
with the financial covenants. The financial covenants, such as the
consolidated leverage ratio, fixed interest coverage ratio and minimum
cash balance requirements, have been modified through the maturity of
the respective credit facility. Our Balance Sheet therefore returned to
the traditional classification of short-term debt and long-term debt.
“TBS remains in a solid financial condition. At the end of June 30,
2010, our net debt to capitalization ratio was 36.6% which we believe to
be at a modest level as compared to industry standards. Our cash
balances at the end of June 30, 2010 were about $30.1 million excluding
$6.6 million of restricted cash on deposit, to be used to fund our share
of payments to the shipyard for our newbuilding program. During the six
months ended June 30, 2010, we made scheduled debt repayments in the
amount of $35.1 million.
“In June 2010, we entered into an agreement to sell the M/V Savannah
Belle, the smallest handysize bulk carrier in our fleet at 22,558
deadweight tons, for a gross price of $2.8 million. We delivered the
vessel to its new owners on July 20, 2010 and the Company used the net
proceeds to pay down the Bank of America Credit Facility. As a result,
$5.2 million was recorded on June 30, 2010 on the vessel held for sale
to write down to the net realized value.
“With the sale of this vessel, TBS’ current fleet is comprised of 48
vessels with an aggregate of 1.44 million DWT, consisting of 26
tweendeckers and 22 handymax/handysize bulk carriers.
“Our newbuilding program for the six Roymar Class multipurpose
tweendeckers is progressing well and we have the requisite bank
financing for them in place. We have taken delivery of our first two
vessels in September 2009 and March 2010. Of the remaining four vessels,
we expect two vessels to be delivered in the second half of 2010 and
two in 2011.
“In the second quarter of 2010, we continued our drydocking program and
have drydocked five vessels with 110 drydocking days without
significantly impacting our operational efficiency.
“We granted 832,000 fully vested shares having a value of $5.6 million
to employees in June 2010. Non-cash equity compensation expense of $3.3
million and $5.9 million for the three and six months ended June 30,
2010, respectively are included in G&A expenses.”
Second Quarter 2010 Results:
For the second quarter ended June 30, 2010, total revenues were $111.2
million, an increase of 54.0% compared to the $72.2 million for the same
period in 2009. Net loss for the second quarter 2010 was $9.7 million,
after loss attributable to the non-controlling interests, which is an
improvement of 42.6% compared to $16.9 million loss for the same period
in 2009. Loss per share on a basic and diluted basis were $(0.32) in the
second quarter of 2010, calculated based on 29,973,420 shares, compared
to $(0.57) for the second quarter of 2009, calculated based on
29,827,345 shares. Net loss for the quarter ended June 30, 2010 includes
a loss of $5.2 million on the sale of M/V Savannah Belle and a $3.3
million expense for the amortization of non-cash equity compensation.
EBITDA, which is a non-GAAP measure, increased to $22.2 million for the
quarter ended June 30, 2010 from $11.2 million in 2009. Please see
“Non-GAAP Reconciliations – EBITDA” following the financial statements
in this press release for a reconciliation of EBITDA to net (loss).
Revenues:
Total revenues for the second quarter of 2010 were $111.2 million and
include voyage revenues of $70.6 million, time charter revenues of $37.7
million and logistics and other revenues of $2.9 million.
An average of 48 vessels (excluding off-hire) were operated during the
second quarter 2010 compared to 45 vessels (excluding off-hire) during
the same period in 2009.
Voyage Revenues:
Voyage revenues for the quarter ended June 30, 2010 were $70.6 million,
an increase of $10.9 million or 18.3% from $59.7 million for the same
period in 2009. The increase in voyage revenue is primarily attributable
to the increase in freight rates.
Total cargo volume (including aggregates) decreased 75,000 tons or 3.1%
to 2,374,000 tons for the quarter ended June 30, 2010, from 2,449,000
tons for the same period in 2009. This decrease is mainly attributable
to the decrease in agricultural and bulk cargoes transported.
Non-aggregate revenue tons carried decreased by 199,000 tons for second
quarter 2010 whereas aggregate revenue tons carried increased by 124,000
tons for second quarter 2010 as compared to second quarter 2009.
Freight rates excluding aggregates increased by $16.13 per ton or 40.0%
to $56.46 per ton for quarter ended June 30, 2010 from $40.33 per ton
during the same period in 2009 and an increase of 6.85% from $52.84 per
ton in the first quarter of 2010.
Average Daily Voyage Time Charter Equivalent, which is an industry
standard metric reflecting the daily net earnings of a voyage after
deducting all voyage expenses from voyage revenues, was $14,463 per day
for the second quarter of 2010, an increase of 28.4% from $11,268 per
day during the second quarter of 2009 and an decrease of 0.3% from
$14,511 per day during the first quarter of 2010.
Time Charter Revenues:
Time charter revenues increased by $25.5 million to $37.7 million for
the quarter ended June 30, 2010 from $12.2 million for the quarter ended
June 30, 2009. The increase was primarily due to higher average charter
hire rates and an increase in time charter-out days.
Average Daily Time Charter Equivalent, which is an industry standard
metric reflecting time charter-out revenues during the period reduced by
commissions, was $18,532 per day for the second quarter of 2010, an
increase of $8,890 from $9,642 per day during the same period in 2009
and an increase of 13.7% from $16,299 per day during the first quarter
of 2010.
Expenses:
Total operating expenses for the quarter ended June 30, 2010 increased
by $30.6 million or 36.0% to $115.6 million from $85.0 million for the
same period in 2009.
Voyage expenses, which include fuel costs, commissions, port call
charges and stevedoring, increased by $10.0 million or 36.4% to $37.3
million for the quarter ended June 30, 2010. The rise was primarily due
to increase in fuel expenses as a result of increased average fuel costs
and commission expenses due to a rise in freight and time charter
revenues, as well as increase in port call expenses and stevedore and
other cargo-related expenses.
Vessel expenses, which consist of operating expenses relating to owned
and controlled vessels, such as crewing, stores, repairs and
maintenance, insurance and charter hire fees for vessels that are
chartered-in, increased by $6.2 million or 24.3% to $31.7 million for
the second quarter 2010 as compared to $25.5 million for the second
quarter of 2009. The increase in vessel operating expense was due to an
increase in the average operating expense day rate due to higher stores
and maintenance expenses. In addition, our new Brazilian joint venture
subsidiary added to vessel operating expenses caused by the three
Brazilian flagged vessels having higher crewing expenses and higher
repair expenses.
General and administrative expenses increased by $5.7 million or 68.0%
to $14.0 million for the quarter ended June 30, 2010, primarily due to
the non-cash equity compensation expense.
Operating expenses for the second quarter 2010 also includes an expense
of $1.7 million related to TBS Logistics Incorporated, our cargo and
transport management subsidiary.
Results for the Six Months ended June 30, 2010:
For the six months ended June 30, 2010, total revenues were $211.3
million, an increase of 47.4% compared to the $143.4 million for the
same period 2009. Net loss for the six months 2010 was $17.5 million,
after loss attributable to the non-controlling interests, which is an
improvement of 54.2% compared to $38.2 million loss for the same period
2009. Loss per share on a basic and diluted basis were $(0.59) for the
six months ended June 30, 2010, calculated based on 29,930,634 shares,
compared to $(1.28) for the same period of 2009, calculated based on
29,822,402 shares. Net loss for the six months ended June 30, 2010
includes a $5.2 million loss on the sale of the M/V Savannah Belle and a
$3.3 million expense for non-cash equity compensation.
EBITDA, which is a non-GAAP measure, increased by 184.4% to $45.5
million for the six months ended June 30, 2010 from $16.0 million in
2009. Please see “Non-GAAP Reconciliations – EBITDA” following the
financial statements included in this press release for a reconciliation
of EBITDA to net income.
An average of 47 vessels (excluding off-hire) were operated during the
six months 2010 compared to 45 vessels (excluding off-hire) during the
same period of 2009.
Total revenues of $211.3 million for the six months 2010 include voyage
revenues of $145.0 million, time charter revenues of $60.6 million and
logistic and other revenues of $5.7 million.
Brazilian Joint Venture:
The Company entered into a joint venture agreement with an un-affiliated
Brazilian corporation, Log-In Logistica Intermodal S/A (BOSVESPA:
LOGN3), to form, Log.Star Navegac?o S.A., or Log.Star, in January 2010.
TBS owns 70% of the joint venture with the remaining 30% owned by Log-In
Logistica. Log.Star is a Brazilian flag shipping company formed to
concentrate on the movement of breakbulk, bulk parcel, heavy left,
general and project cargoes along Brazil’s coastline and Amazon River
basin. This joint venture has recently obtained an operational licence
in Brazil to provide domestic shipping services, for which it has
chartered-in three vessels on a three year bareboat agreement.
Fleet Expansion and Newbuilding Program:
The TBS Newbuilding Program to construct six Roymar Class multipurpose
vessels with retractable tweendecks proceeded with the delivery of two
vessels: the first in September 2009 and the second in March 2010. Two
vessels are scheduled to be delivered in the third and fourth quarters
of 2010, and the remaining two vessels in 2011.
Each of these vessels has box-shaped holds, open hatches and fully
retractable hydraulic tweendecks and is geared with 35-and 40-ton cranes
combinable up to 80 tons. Each will also have a modern fuel-efficient
engine enabling the vessel to operate effectively at 15 knots.
TBS previously entered into a $150 million term loan credit agreement
with a syndicate of lenders led by The Royal Bank of Scotland to finance
the building and purchase of these six new multipurpose vessels. As of
June 30, 2010, the Company has made cumulative payments of $98.0 million
to the Shipyard towards the purchase of these vessels.
TBS 2010 Drydock Program and Vessel Upgrade Program:
For 2010, TBS’ plan is to drydock 16 vessels for approximately 406
drydocking days with a steel renewal of about 2,151 metric tons at a
total cost of approximately $16.3 million. This includes two vessels
that entered into drydocking during the fourth quarter of 2009.
Our anticipated 2010 drydocking schedule is as follows:
– During the three months ended March 31, 2010, TBS had two vessels
that entered into drydock during the fourth quarter of 2009 that
continued their drydock for 28 days in the first quarter of 2010. In
addition, two vessels entered into drydock for 45 days, requiring about
85 metric tons of steel.
– During the second quarter 2010, five vessels entered into drydocking
requiring about 481 metric tons of steel and 110 drydock days.
– In the third quarter 2010, TBS plans to drydock five vessels
requiring about 1,090 metric tons of steel and about 149 drydock days.
Two vessels that entered into drydock in the second quarter are expected
to continue their drydocking in this quarter.
– In the fourth quarter 2010, TBS plans to drydock two vessels,
requiring about 495 metric tons of steel and about 74 drydock days. Two
vessels scheduled to enter into drydock in the third quarter are planned
to continue their drydocking in this quarter.
Source: TBS International plc
No comments:
Post a Comment