MAJURO, MARSHALL ISLANDS, Nov. 09, 2018 (GLOBE NEWSWIRE) -- Pioneer Marine Inc. and its subsidiaries (OSLO-OTC: PNRM) ("Pioneer Marine," or the "Company") a leading shipowner and global drybulk handysize transportation service provider announced its financial and operating results for the third quarter ended September 30, 2018.
Financial Highlights:
• Net Income /(Loss)
• Time Charter equivalent (TCE) revenue
• Adjusted EBITDA*
Recent Events:
Liquidity & Capital Resources:
As of September 30, 2018, the Company had a total liquidity of $28.6million inclusive of $11.6 million in restricted cash. The Company has no capital commitments.
*For reconciliation and definition of Adjusted EBITDA refer to “Summary of Operating Data (unaudited)” section within this press release.
Torben Janholt, Chief Executive Officer commented: “We are pleased with our results during the third quarter which have seen an important increase in our TCE earnings of about 20% as compared to the same prior year period. In actual figures, the daily TCE earning went from $7,498 per day to $9,008 per day.
“Along with our positive results and the successful completion of the refinancing of our major loan facilities with ABN Amro and DVB Bank, we are well prepared for new opportunities. We believe in a positive development of our market segment and our vessels are well positioned to take advantage of this.”
Financial Review: Three months ended September 30, 2018
TCE revenue for the three-month period ended September 30, 2018 increased by $4.1 million, or 38%, to $15.0 million as compared to $10.9 million for the respective period of 2017. The increase is mainly attributable to the improved market rates for the third quarter of 2018, and partially due to the addition of three newly acquired Handysize vessels. TCE per day rate for the third quarter of 2018 increased to $9,008 per day as compared to $7,498 per day for the third quarter of 2017, increased by 20%.
Adjusted EBITDA for the three-month period ended September 30, 2018 increased by $3 million compared to same period in previous year. The increase is mainly due to $4.1 million increase in TCE revenue as described above, partially offset with an increase of $1.1 million in Operating Expenses which mainly derives from the addition of the three new acquired vessels.
One off items for the three-month period ended September 30, 2018 include the $0.5 million loss on debt extinguishment resulting from the refinancing of two of the Company’s existing facilities, while one off items for the same period in 2017 included $0.3 million restructuring costs.
After adjusting net income/loss for the one-off items occurred within the three months ended September 30, 2018 and 2017 respectively, the Adjusted Net Loss decreased by $0.4 million to $0.1 million for the third quarter of 2018 as compared to the Adjusted Net Loss of $0.5 million for the same period in previous year.
Financial Review: Nine months ended September 30, 2018
TCE revenue for the nine-month period ended September 30, 2018 increased by $9.4 million, or 29%, to $41.4 million as compared to $32.0 million for the respective period of 2017. The increase is mainly attributable to the improved market rates prevailing the market throughout 2018, and partially due to the addition of three newly acquired Handysize vessels. TCE per day rate for the nine months of 2018 increased to $9,153 per day as compared to $7,496 per day for the same period of 2017, increased by 22%.
Adjusted EBITDA for the nine-month period ended September 30, 2018 increased by $9.1 million compared to same period in previous year. The two main factors affected this increase are: i) $9.4 million increase in TCE revenue as described above, ii) $0.4 million increase in Operating expenses due to the addition of the three new acquired vessels and, iii) $0.1 million decrease in General and Administrative expenses.
One off items for the nine month period ended September 30, 2018 include the $1.3 million loss on debt extinguishment resulting from the refinancing of three of the Company’s existing loan facilities, while one off items for the nine months ended September 30, 2017 include the $0.1 million loss on vessel disposition resulting from the sale of M/V Azure Bay and the $1.3 million restructuring costs expensed in the same period.
After adjusting net income/loss for the one-off items occurred within the nine months ended September 30, 2018 and 2017 respectively, the Adjusted Net Income increased by $9.3 million to $3.1 million for the nine months of 2018 as compared to the Adjusted Net Loss of $6.2 million for the same period in previous year. The increase is attributable to the increased Adjusted EBITDA of $9.1 million as described above, the decrease of $0.7 million relating to the drydock expense, partially offset with the increase of $0.2 million in Interest expense and interest income net, and the increased depreciation by $0.3 million.
Current Fleet List
Vessel | Yard | DWT | Year Built |
Handysize | |||
Calm Bay | Saiki Heavy Industries | 37,534 | 2006 |
Reunion Bay | Kanda Shipbuilding | 32,354 | 2006 |
Fortune Bay | Shin Kochijyuko | 28,671 | 2006 |
Ha Long Bay | Kanda Kawajiri | 32,311 | 2007 |
Teal Bay | Kanda Kawajiri | 32,327 | 2007 |
Eden Bay | Shimanami Shipyard | 28,342 | 2008 |
Emerald Bay | Kanda Shipbuilding | 32,258 | 2008 |
Mykonos Bay | Jinse Shipbuilding | 32,411 | 2009 |
Resolute Bay | Hyundai Vinashin | 36,767 | 2012 |
Jupiter Bay | Tsuji Heavy Industries | 30,153 | 2012 |
Venus Bay | Tsuji Heavy Industries | 30,003 | 2012 |
Orion Bay | Tsuji Heavy Industries | 30,009 | 2012 |
Falcon Bay | Yangzhou Guoyu Shipbuilding | 38,464 | 2015 |
Kite Bay | Yangzhou Guoyu Shipbuilding | 38,419 | 2016 |
Alsea Bay | Hyundai Mipo Dockyard Co. Ltd | 36,892 | 2011 |
Liberty Bay | Hyundai Mipo Dockyard Co. Ltd | 36,892 | 2012 |
Monterey Bay | Hyundai Mipo Dockyard Co. Ltd | 36,887 | 2013 |
Handymax | |||
Paradise Bay | Oshima Shipbuilding | 46,232 | 2003 |
Supramax | |||
Tenacity Bay | Jiangsu Hantong Ship Heavy Industry | 56,842 | 2008 |
Summary of Operating Data (unaudited)
(In thousands of U.S. Dollars except per share data)
Three Months Ended September 30, 2018 | Three Months Ended September 30, 2017 | Nine Months Ended September 30, 2018 | Nine Months Ended September 30, 2017 | ||||||
Revenue, net | 16,175 | 12,387 | 48,234 | 35,655 | |||||
Voyage expenses | (1,204 | ) | (1,465 | ) | (6,800 | ) | (3,633 | ) | |
Time charter equivalent revenue | 14,971 | 10,922 | 41,434 | 32,022 | |||||
Vessel operating expense | (7,863 | ) | (6,840 | ) | (21,760 | ) | (21,384 | ) | |
Drydock expense | (1,860 | ) | - | (2,453 | ) | (3,216 | ) | ||
Depreciation expense | (2,422 | ) | (2,003 | ) | (6,509 | ) | (6,152 | ) | |
General and administration expense | (1,289 | ) | (912 | ) | (3,041 | ) | (3,106 | ) | |
Loss on vessel disposition | - | - | - | (62 | ) | ||||
Loss on debt extinguishment | (533 | ) | - | (1,287 | ) | - | |||
Restructuring costs | - | (284 | ) | - | (1,286 | ) | |||
Interest expense and finance cost | (1,644 | ) | (1,379 | ) | (4,578 | ) | (4,231 | ) | |
Interest income | 140 | 157 | 561 | 455 | |||||
Other expenses and taxes, net | (100 | ) | (430 | ) | (594 | ) | (585 | ) | |
Net (loss) /Income | (600 | ) | (769 | ) | 1,773 | (7,545 | ) | ||
Adjusted net (loss)/Income (2) | (67 | ) | (485 | ) | 3,060 | (6,197 | ) | ||
Net (loss) /Income per share, basic and diluted | (0.02 | ) | (0.03 | ) | 0.06 | (0.26 | ) | ||
Adjusted net (loss)/Income per share, basic and diluted (2) | (0.00 | ) | (0.02 | ) | 0.11 | (0.21 | ) | ||
Three Months Ended September 30, 2018 | Three Months Ended September 30, 2017 | Nine Months Ended September 30, 2018 | Nine Months Ended September 30, 2017 | ||||||
Net (loss)/ Income | (600 | ) | (769 | ) | 1,773 | (7,545 | ) | ||
Add: Loss on vessel disposition | - | - | - | 62 | |||||
Add: Restructuring costs | - | 284 | - | 1,286 | |||||
Add: Loss on debt extinguishment | 533 | - | 1,287 | - | |||||
Adjusted Net (loss)/ Income | (67 | ) | (485 | ) | 3,060 | (6,197 | ) | ||
Add: Depreciation expense | 2,422 | 2,003 | 6,509 | 6,152 | |||||
Add: Drydock expense | 1,860 | - | 2,453 | 3,216 | |||||
Add: Interest expense and finance cost | 1,644 | 1,379 | 4,578 | 4,231 | |||||
Add: Other taxes | 54 | 29 | 139 | 132 | |||||
Less: Interest income | (140 | ) | (157 | ) | (561 | ) | (455 | ) | |
Adjusted EBITDA (1) | 5,773 | 2,769 | 16,178 | 7,079 |
Vessel Utilization: | Three Months Ended September 30, 2018 | Three Months Ended September 30, 2017 | Nine Months Ended September 30, 2018 | Nine Months Ended September 30, 2017 | |||||
Ship days (2) | 1,746 | 1,472 | 4,681 | 4,461 | |||||
Less: Off-hire days | 11 | 15 | 65 | 89 | |||||
Less: Off-hire days due to drydock | 73 | - | 89 | 100 | |||||
Operating days (3) | 1,662 | 1,457 | 4,527 | 4,272 | |||||
Fleet Utilization (4) | 95.2 | % | 99 | % | 96.7 | % | 95.8 | % | |
TCE per day- $ (1) | 9,008 | 7,498 | 9,153 | 7,496 | |||||
Opex per day- $ (6) | 4,503 | 4,647 | 4,649 | 4,794 | |||||
Adjusted G&A expenses per day- $ (7) | 447 | 620 | 488 | 696 | |||||
Vessels at period end | 19 | 16 | 19 | 16 | |||||
Average number of vessels during the period (5) | 19 | 16 | 17 | 16 |
Condensed Consolidated Balance Sheets (Unaudited)
(In thousands of U.S. Dollars)
As at | September 30, 2018 | December 31, 2017 | ||
ASSETS | ||||
Cash & cash equivalents | 17,018 | 61,354 | ||
Restricted cash (current and noncurrent) | 11,576 | 12,468 | ||
Vessels, net | 204,157 | 171,387 | ||
Other receivables | 8,476 | 5,449 | ||
Other assets | 59 | 62 | ||
Total assets | 241,286 | 250,720 | ||
LIABILITIES AND EQUITY | ||||
Accounts payable and accrued liabilities | 6,728 | 4,249 | ||
Deferred revenue | 1,033 | 656 | ||
Total debt, net of deferred finance costs | 109,572 | 92,535 | ||
Total liabilities | 117,333 | 97,440 | ||
Shareholders' equity | 123,953 | 153,280 | ||
Total liabilities and shareholders’ equity | 241,286 | 250,720 | ||
Condensed Consolidated Statement of Cash Flows (Unaudited)
(In thousands of U.S. Dollars)
Nine Months Ended September 30, 2018 | Nine Months Ended September 30, 2017 | |||
Cash flows from operating activities | ||||
Net Income/ (Loss) | 1,773 | (7,545 | ) | |
Adjustments to reconcile net income/ (loss) to net cash provided by/ (used in) | ||||
operating activities: | ||||
Depreciation | 6,509 | 6,152 | ||
Amortization of deferred finance fees | 472 | 610 | ||
Loss on debt extinguishment | 1,287 | - | ||
Loss on vessel disposition | - | 62 | ||
Changes in operating assets and liabilities | (484 | ) | (1,628 | ) |
Net cash provided by/(used in) operating activities | 9,557 | (2,349 | ) | |
Cash flows from investing activities | ||||
Payments for vessel acquisition and improvements | (39,215 | ) | (357 | ) |
Cash proceed from vessel sale | - | 6,982 | ||
Purchase of other fixed assets | (29 | ) | (10 | ) |
Net cash (used in)/provided by investing activities | (39,244 | ) | 6,615 | |
Cash flows from financing activities | ||||
Loan Proceeds | 93,710 | - | ||
Payment of Debt extinguishment fees | (637 | ) | (90 | ) |
Loan repayments and prepayments | (77,271 | ) | (16,895 | ) |
Payment of deferred finance fees and other loan fees | (258 | ) | - | |
Repurchase of common stock | (6,231 | ) | - | |
Dividends paid | (24,854 | ) | - | |
Net cash used in financing activities | (15,541 | ) | (16,985 | ) |
Net decrease in cash and cash equivalents | (45,228 | ) | (12,719 | ) |
Cash and cash equivalents and Restricted cash at the beginning of the period | 73,822 | 81,822 | ||
Cash and cash equivalents and Restricted cash at period end | 28,594 | 69,103 | ||
About Pioneer Marine Inc.
Pioneer Marine is a leading ship owner and global drybulk handysize transportation service provider. Pioneer Marine currently owns seventeen Handysize, one Handymax and one Supramax drybulk carriers.
Forward-Looking Statements
Matters discussed in this press release may constitute forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides safe harbor protections for forward-looking statements in order to encourage companies to provide prospective information about their business. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts. The Company desires to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and is including this cautionary statement in connection with this safe harbor legislation. The words "believe," "anticipate," "intends," "estimate," "forecast," "project," "plan," "potential," "may," "should," "expect," "pending" and similar expressions identify forward-looking statements.
The forward-looking statements in this press release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, our management's examination of historical operating trends, data contained in our records and other data available from third parties. Although we believe that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, we cannot assure you that we will achieve or accomplish these expectations, beliefs or projections.
In addition to these important factors, other important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include the failure of counterparties to fully perform their contracts with us, the strength of world economies and currencies, general market conditions, including fluctuations in charter rates and vessel values, changes in demand for dry bulk vessel capacity, changes in our operating expenses, including bunker prices, drydock and insurance costs, the market for our vessels, availability of financing and refinancing, charter counterparty performance, ability to obtain financing and comply with covenants in such financing arrangements, changes in governmental rules and regulations or actions taken by regulatory authorities, potential liability from pending or future litigation, general domestic and international political conditions, potential disruption of shipping routes due to accidents or political events, vessels breakdowns and instances of off-hires and other factors.
Contact:
Pioneer Marine Inc.
Torben Janholt CEO
+45 21 639 232, +30 212222 3750
Investor Relations / Media
Capital Link, Inc.
Paul Lampoutis
+212 661 7566
pioneermarine@capitallink.com