ADS Crude Carriers Plc (“ADS Crude Carriers” or the “Company”) announces the release of its first quarter 2019 report.
HEADLINES Q1 2019:
- Revenue of USD 11.7 million, up 12% from Q4 2018
- Net revenue¹ of USD 6.5 million, down 5% from Q4 2018
- TCE¹ per day of USD 24,093, down 2% from Q4 2018
- Operating profit of USD 2.4 million, down 10% from Q4 2018
- Net profit of USD 1.8 million, down 15% from USD 2.2 million in Q4 2018
- EPS of USD 0.08, down 15% from Q4 2018
- Net cash flow USD 2.3 million, same level as Q4 2018
- Announcement of the Company’s first quarterly dividend, USD 0.04 per share
- Backlog estimated at 90% of Q2 2019 vessel operating days booked at an average TCE per day of USD 16,000
|KEY FINANCIALS||Quarter ended / as at||Period / as at|
|(In thousands of USD)||31-Mar-19||31-Dec-18||30-Apr-18 to 31-Dec-18|
|Revenue||11 700||10 466||13 432|
|Net revenue¹||6 505||6 816||7 907|
|TCE¹ per day (in USD)||24 093||24 697||18 962|
|Operating profit||2 374||2 642||903|
|Net profit||1 835||2 168||102|
|EPS (in USD per share)||0.08||0.09||0.01|
|Cash flow from operations||3 989||3 221||(2 595)|
|Dividend per share (in USD per share)||0.04||–||–|
|Net cash flow||2 284||2 336||13 689|
|Cash and cash equivalents||15 974||13 689||13 689|
|Equity ratio||64 %||61 %||61 %|
|Net interest-bearing debt¹||13 502||15 787||15 787|
Chairman of the Board of Directors, Bjørn Tore Larsen, commenting on the Q1 2019 results said:
We are pleased to announce the Company’s first quarterly dividend in what is only our second quarter of full vessel operations, thus delivering on our commitment we made during the start-up of the Company last year to return surplus earnings back to shareholders. The first quarter saw ADS record earnings at a consistent level compared to the previous quarter, recording an average time charter equivalent per day of 24,093, which resulted in earnings per share of USD 0.08, of which half we return immediately to shareholders by way of a dividend of USD 0.04 per share.
The tanker market has been weaker in the second quarter to-date, which is reflected in the backlog at a time charter equivalent rate of USD 16,000 per day. Although we will not make any predictions about the future, the general market sentiment appears positive for the second half of the year and next year.
The third quarter will see all our vessels go into drydock to perform the mandatory intermediate surveys and retrofitting of scrubbers. The scrubber investments are financed by an amount ofUSD 3 million per vessel raised in the Company’s 2018 equity issue, and our immediate focus is on making sure we have sufficient liquidity available to ensure the dockings go smoothly, including evaluating financing options for the intermediate surveys. Following completion of the dockings, our fleet will be well positioned to take advantage of the impact of the impending enforcement of the IMO 2020 regulations.
Our first priority is on generating returns to shareholders from our current fleet of three VLCCs. We will be opportunistic in terms of fleet expansion, but will be disciplined and patient in terms of further acquisitions, only growing the business in the event that it provides added value for the shareholders.
Terje Bodin Larsen, CEO
+47 905 35 543
Ben Boiling, CFO
+47 912 40 945
About ADS Crude Carriers
ADS Crude Carriers Plc is a public limited company listed on the Merkur Market at the Oslo Stock Exchange (ticker ADSC-ME). The Company is incorporated and domiciled in Cyprus and has Norwegian subsidiaries based in Arendal, Norway. The principal activities of the Company are operating tanker vessels in the global tanker market. The Company currently owns and operates a fleet of three VLCCs: Front Page, ADS Stratus and ADS Serenade.
For more information, visit www.adsmh.com
Forward looking statements
The information included herein may contain forward looking statements. Forward looking statements include all statements that are not historical facts, including but not limited to statements expressing or implying the Company’s intent, belief or current expectations with respect to, among other things, forecasts, estimates, and predictions. Such forward looking statements necessarily involve risks and uncertainties and are dependent on assumptions, information, data or methods that may be incorrect or imprecise. Actual results could differ materially from expectations expressed in the forward-looking statements if one or more of the underlying assumptions or expectations proves to be inaccurate or is unrealized. Actual results may differ materially from those expected or projected in the forward-looking statements. The Company undertakes no responsibility or obligation to update or alter forward-looking statements for any reason.