ADS Crude Carriers Plc (“ADS Crude Carriers” or the “Company”) announces the release of its second quarter 2019 report.
ADS Crude Carriers Q2 2019 report (PDF)
HEADLINES Q2 2019:
- Net revenue down USD 1.7 million (27%) from Q1 2019 due to 28% reduction in TCE per day to USD 17,463
- Net profit of USD 0.6 million, down USD 1.2 million from Q1 2019
- Announcement of second consecutive quarterly dividend, total USD 0.5 million or USD 0.02 per share
- Amendment of vessel loan completed in the quarter, providing financing for forthcoming intermediate surveys
- Commencement of scrubber installation and intermediate survey program post quarter end
- Approximately 50% of vessel days in Q3 2019 expected to be related to intermediate survey & scrubber fitting
- Backlog estimated for 45% of vessel days in Q3 2019 booked at an average TCE per day of USD 20,000
KEY FINANCIALS
| Quarter ended | Half-year | ||||||
| (In thousands of USD) | 30-Jun-19 | 31-Mar-19 | 31-Dec-18 | 30-Jun-19 | 30-Apr-18 to 31-Dec-18 |
||
| Revenue | 11 161 | 11 700 | 10 466 | 22 861 | 13 432 | ||
| Net revenue | 4 767 | 6 505 | 6 816 | 11 272 | 7 907 | ||
| TCE per day (in USD) | 17 463 | 24 093 | 24 697 | 20 761 | 18 962 | ||
| Operating profit | 1 115 | 2 374 | 2 642 | 3 489 | 903 | ||
| Net profit | 601 | 1 835 | 2 168 | 2 436 | 102 | ||
| EPS (in USD per share) | 0.03 | 0.08 | 0.09 | 0.10 | 0.01 | ||
| Cash flow from operations | (806) | 3 989 | 3 221 | 3 183 | (2 595) | ||
| Net cash flow | 910 | 2 284 | 2 336 | 3 195 | 13 689 | ||
| Cash and cash equivalents | 16 884 | 15 974 | 13 689 | 16 884 | 13 689 | ||
| Equity ratio | 58 % | 64 % | 61 % | 58 % | 61 % | ||
| Net interest-bearing debt | 19 131 | 13 502 | 15 787 | 19 131 | 15 787 | ||
Chairman of the Board of Directors, Bjørn Tore Larsen, commenting on the Q2 2019 results said:
“The seasonally weak tanker market impacted our second quarter earnings, resulting in a 27% lower average Time Charter Equivalent quarter-on-quarter of USD 17,463 per day and providing a net profit of USD 0.6 million, of which we will immediately return USD 0.5 million back to shareholders by way of a dividend. This is the Company’s second successive quarterly dividend and, in addition to the previous dividend paid in June, the total declared dividends for the first six months of the year is USD 0.06 per share, equivalent to an annualized yield of approximately 6%.
As planned, subsequent to quarter end we have seen two of our vessels go into yard to perform mandatory intermediate surveys and retrofitting of scrubbers, with the third vessel expected to enter yard around the end of September. The yard stays remain on schedule with two expected to finish before end of Q3 2019 and one during Q4 2019. Following completion of the dockings all of our vessels will be well positioned to take advantage of the impact of the impending IMO 2020 regulations.
During the second quarter we successfully completed an amendment to the vessel loans, raising USD 6.6 million in total cash, proceeds which will be mainly used to finance the intermediate vessel surveys. Our total expected investment in scrubber systems and taking the vessels through intermediate surveys is approximately USD 6.5 million per vessel, up from the previously guided USD 5.5 million per vessel, with the change mainly due to increased estimated costs necessary to maintain the highest level vessel rating.
The yard stays will reduce available revenue generating days in the third quarter as we expect approximately 50% of vessel days in Q3 2019 to be spent associated with the yard stays, while we have secured estimated backlog for 45% of vessel days in Q3 2019 booked at an average TCE per day of USD 20,000.
The general market sentiment appears positive for the near term future and into next year. Our immediate focus is on completing the ongoing vessel dockings on schedule and we look forward to taking delivery of our upgraded vessels after which they will immediately commence in the spot market where we believe they will be best positioned for generating returns to our shareholders.”
Contacts
Terje Bodin Larsen, CEO
+47 905 35 543
tbl@ads.no
Ben Boiling, CFO
+47 912 40 945
ben.boiling@ads.no
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: ADS Page, ADS Stratus and ADS Serenade.
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.