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Grindrod Shipping Holdings Ltd 1H19 financial results

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Dry Bulk,


Grindrod Shipping Holdings Ltd, a provider of maritime transportation services in the dry bulk and product tanker sectors, today announced its first half 2019 earnings results for the period ended 30 June 2019.

Financial highlights

  • Revenues of US$167.2 million.
  • Gross profit of US$5.9 million.
  • Adjusted EBITDA of US$14.7 million.
  • Loss for the period of (US$19.0 million) or (US$0.99)/ordinary share including a (US$4.3) million impairment loss on vessel sales.
  • Handysize and Supramax/Ultramax TCE/day of US$7030 and US$10 481, respectively, outperformed the Baltic Handysize TC Index (BHSI) and Baltic Supramax-58 TC Index (BSI-58) benchmarks by approximately 22.2% and 34.2% respectively.
  • Medium Range (MR) product tanker TCE/d of US$14 276 outperformed Clarksons’ Average MR Clean Earnings/d assessment of US$12 448 by approximately 14.7%, and small tanker TCE/d of US$12 015.
  • Period end cash and cash equivalents (including restricted cash) of US$50.5 million.

Operational highlights

  • The company sold the 2005-built Handysize vessel IVS Kawana for a gross price of US$7.8 million with delivery to the buyers in April 2019.
  • The company took delivery of the IVS Phoenix, a Japanese-built eco ultramax dry bulk carrier newbuilding in June 2019. The vessel has been chartered-in from its owner for a minimum period of three years with options to extend for up to 2 additional years, at the company’s election.
  • In June 2019, it completed a financing arrangement with a Japanese shipowner relating to the 2010-built Handysize vessel IVS Knot for a cash amount of US$13.0 million. The transaction generated net proceeds of US$6.3 million after settling the debt associated with the vessel. The IVS Knot continues to be considered part of its owned fleet.
  • The company wound up the Leopard Tankers JV with Vitol, resulting in the company acquiring 100% ownership of the 2013-built medium range eco tankers Leopard Sun and Leopard Moon in January and February, respectively, for US$27.0 million/vessel.
  • The company’s joint venture with Engen Petroleum sold the 2010-built medium range tanker Lavela for a gross price of US$14.9 million with delivery to the buyers in March 2019. The vessel was the last vessel owned by this joint venture.
  • The company sold the 2011-built small product tanker Umgeni for a gross price of US$8.9 million with delivery to the buyers in June 2019.

Latest developments

  • The company have agreed in principle to acquire the 33.25% stake of one of its two JV partners in IVS Bulk, which would result in increasing its ownership percentage to 66.75%. It is currently in advanced discussions with lenders to refinance all of the existing debt of IVS Bulk, as well as provide us sufficient capital to acquire the additional 33.25% stake. The remaining partner intends to retain its 33.25% stake in IVS Bulk. The company says that it can provide no assurance that it will complete the acquisition until such time that agreements have been finalised and the financing has been obtained.
  • On 8 August, the company took delivery of the IVS Okudogo, one of its two owned Ultramax eco new buildings built in Japan. It finalised and drew down US$15.7 million in financing with IYO Bank in conjunction with the delivery. An additional US$15.7 million remains available to partially finance the purchase of the IVS Prestwick, which is expected in late September.
  • Subject to documentation, the company has agreed to enter into a financing arrangement with a Japanese shipowner on attractive terms relating to the 2011-built Handysize vessel IVS Kinglet. The transaction would be on similar terms to the recently completed IVS Knot financing and would result in net cash proceeds of US$6.3 million, after repayment of debt associated with the vessel. The transaction is expected to be completed in late September, though it can provide no assurances that the transaction will close.

For more details, click here.

Read the article online at: https://www.drybulkmagazine.com/ports-terminals/03092019/grindrod-shipping-holdings-ltd-first-half-2019-financial-results/

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