Grindrod Shipping has announced its unaudited financial results for 3Q23

Financial highlights for the three months ended 30 September 2023

• Revenues of US$112.5 million
• Gross profit of US$4.2 million
• Loss for the period and attributable to owners of the company of US$8.5 million, or US$0.44 per ordinary share
• Adjusted net loss of US$6.5 million, or US$0.33 per ordinary share
• Adjusted EBITDA of US$11.2 million
• Handysize and supramax/ultramax TCE per day of US$9744 and US$12 380, respectively

Financial highlights for the nine months ended 30 September 2023

• Revenues of US$298.3 million
• Gross profit of US$27.7 million
• Loss for the period and attributable to owners of the Company of US$7.2 million, or US$0.37 per ordinary share
• Adjusted net loss of US$5.2 million, or US$0.27 per ordinary share
• Adjusted EBITDA of US$51.2 million
• Handysize and supramax/ultramax TCE per day of US$10 252 and US$13 446, respectively
• Period end cash and cash equivalents of US$69.0 million and restricted cash of US$6.9 million

Unaudited results for the three months ended 30 September 2023 (2023) and for the three months ended 30 September 2022 (2022)

Revenue was US$112.5 million for 2023 and US$107.2 million for 2022. Vessel revenue was US$54.0 million for 2023 and US$107.0 million for 2022. Revenue increased due to Ship sale revenue generated from the sale of a handysize vessel and two supramax/ultramax vessels in 3Q23 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 US$33.5 million and US$78.9 million, respectively, for 2023, and US$43.6 million and US$63.6 million, respectively, for 2022. Handysize vessel revenue and supramax/ultramax vessel revenue was US$22.4 million and US$31.6 million, respectively, for 2023, and US$43.5 million and US$63.5 million, respectively, for 2022. The results for 2023 were negatively impacted by weaker spot markets. Handysize ship sale revenue and supramax/ultramax ship sale revenue was US$11.0 million and US$47.4 million, respectively, for 2023, which was due to the sale of a handysize vessel and two supramax/ultramax vessel in 3Q23 compared to no sales for the same period in 2022.

Handysize TCE per day was US$9744 per day for 2023 and US$23 257 per day for 2022. Supramax/ultramax TCE per day was US$12 380 per day for 2023 and US$25 645 per day for 2022.

Cost of sales was US$108.3 million for 2023 and US$68.7 million for 2022. Cost of sales increased primarily as a result of the sale of a handysize vessel and two supramax/ultramax vessels in 3Q23 compared to no sale for the same period in 2022. This was partially offset by a decrease in charter-in costs on short-term charters as spot rates weakened during 3Q23.

Our handysize segment and supramax/ultramax segment cost of sales was US$33.1 million and US$75.8 million, respectively, for 2023 and US$25.9 million and US$43.7 million, respectively, for 2022. Cost of sales increased due to the sale of a handysize and two supramax/ultramax vessels in 3Q23 compared to no sale for the same period in 2022, which was partially offset by a decrease in voyage expenses and charter hire as a result of the weaker market.

Handysize voyage expenses and supramax/ultramax voyage expenses were US$6.7 million and US$12.5 million, respectively, for 2023 and US$7.6 million and US$15.8 million, respectively, for 2022. Handysize charter hire expense and supramax/ultramax charter hire expense were US$5.3 million and US$2.2 million, respectively, for 2023 and US$5.7 million and US$11.9 million, respectively, for 2022. Handysize vessel operating costs and supramax/ultramax vessel operating costs were US$7.2 million and US$4.3 million, respectively, for 2023, and US$8.1 million and US$4.6 million, respectively, for 2022. Handysize vessel operating costs per day were US$5 981 per day for 2023 and US$5 883 per day for 2022. Vessel operating costs per day were higher in the handysize drybulk carrier segment for 2023 in comparison to 2022 due to increased cost of lubricating oils, increased repairs to certain of the older vessels and additional crew to manage ongoing repairs as an intermediary measure between drydockings. Supramax/ultramax vessel operating costs were US$5 930 per day for 2023 and US$5 105 per day for 2022. Vessel operating costs per day were higher in the supramax/ultramax drybulk carrier segment for 2023 in comparison to 2022 due to increased cost of lubricating oils, increased repairs on a small number of vessels and additional crew to manage ongoing repairs as an intermediary measure between drydockings.

Gross profit was US$4.2 million for the three months ended September 30, 2023 and US$38.5 million for the three months ended September 30, 2022.

Loss for the three months ended September 30, 2023 was US$8.5 million compared to a profit of US$22.2 million for the three months ended September 30, 2022.

For the full results from Grindrod follow the link here.

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