ADS Crude Carriers Plc (“ADS Crude Carriers” or the “Company”) announces the release of its third quarter 2019 report.
ADS Crude Carriers Plc Q3 2019 report (PDF)
HEADLINES Q3 2019:
- Completion of fleet wide scrubber installation and intermediate survey program post quarter end
- Net revenue down USD 2.6 million (55%) from Q2 2019 due to reduction in available vessel days as a result of time spent at yard performing planned intermediate survey and scrubber installations
- TCE per day of USD 16,801, down 4% from Q2 2019
- Net loss of USD 2.9 million, down from net profit USD 0.6 million in Q2 2019
- Approximately 25% of vessel days in Q4 2019 expected to be related to intermediate survey & scrubber fitting
- Backlog estimated for around 60% of vessel days in Q4 2019 booked at an average TCE per day of USD 27,000
- Terms agreed for USD 7.5 million Revolving Credit Facility post-quarter end
KEY FINANCIALS
| Quarter ended | 9 months | |||||||
|---|---|---|---|---|---|---|---|---|
| (In thousands of USD) | 30-Sep-19 | 30-Jun-19 | 31-Mar-19 | 31-Dec-18 | 30-Sep-18 | 30-Sep-19 | 30-Apr-18 to 31-Dec-18 |
|
| Revenue | 6 984 | 11 161 | 11 700 | 10 466 | 2 967 | 29 845 | 13 432 | |
| Net revenue | 2 134 | 4 767 | 6 505 | 6 816 | 1 091 | 13 406 | 7 907 | |
| Vessel operating days | 127 | 273 | 270 | 276 | 141 | 670 | 417 | |
| TCE per day (in USD) | 16 801 | 17 463 | 24 093 | 24 697 | 7 736 | 20 010 | 18 962 | |
| Operating profit | (2 102) | 1 115 | 2 374 | 2 642 | (1 738) | 1 387 | 903 | |
| Net profit | (2 914) | 601 | 1 835 | 2 168 | (2 066) | (478) | 102 | |
| EPS (in USD per share) | (0.12) | 0.03 | 0.08 | 0.09 | (0.11) | (0.02) | 0.01 | |
| Cash flow from operations | 3 847 | (806) | 3 989 | 3 221 | (5 815) | 7 032 | (2 595) | |
| Net cash flow | (3 964) | 910 | 2 284 | 2 336 | 11 352 | (769) | 13 689 | |
| Cash and cash equivalents | 12 920 | 16 884 | 15 974 | 13 689 | 11 353 | 12 920 | 13 689 | |
| Equity ratio | 55 % | 58 % | 64 % | 61 % | 64 % | 55 % | 61 % | |
| Net interest-bearing debt | 23 095 | 19 131 | 13 502 | 15 787 | 18 123 | 23 095 | 15 787 | |
Chairman of the Board of Directors, Bjørn Tore Larsen, commenting on the Q3 2019 results said:
“As expected, the third quarter earnings were impacted by the scheduled yard stays for our fleet of three vessels, reducing the number of available vessel operating days by 53% to 127 days and resulting in a reduction in net revenue of 55% to USD 2.1 million compared to the previous quarter. TCE achieved in the quarter was USD 16,801, which was less than the estimated backlog figure for the quarter we announced on 22 August as a result of higher than expected voyage costs on one vessel towards the end of the quarter.
In-line with ADS Crude Carriers1 strategy to comply with IMO 2020 regulations and be well positioned to take advantage of economic benefits offered by exhaust emissions cleaning technology, the scheduled upgrades to the Company’s fleet have all been successfully completed. The last of the three vessels, ADS Stratus, completed her yard stay 17 November, while ADS Page completed in October and ADS Serenade in September.
The total estimated cost of the intermediate vessel surveys is USD 10.5 million in total for the full fleet, up from the estimated USD 7.5 million previously guided. The higher cost is a result of work required to ensure the fleet maintains the highest-level vessel rating. There is no change to the scrubber investment cost of USD 12 million for the fleet, or USD 4 million per vessel. Remaining payments relating to the vessel upgrades are spread through Q4 2019 and Q1 2020. Partly as a result of higher than originally estimated upgrade costs, and to provide a sufficient working capital buffer, the Company has agreed terms for an unsecured USD 7.5 million Revolving Credit Facility, provided by the Company’s two largest shareholders, Ship Finance International Ltd and ADS Shipping Ltd, at market terms.
VLCC rates observed in the spot market post-quarter end have been significantly higher than levels seen during the first nine months of the year. ADS Crude Carriers’ full exposure to the spot market leaves us well positioned to take advantage of healthy market rates.
The yard stays have reduced available revenue generating days in the fourth quarter and approximately 25% of vessel days in Q4 2019 are expected to be spent associated with the dockings. As expected, the first vessel voyages after completion of intermediate surveys are at lower than the market benchmark and all three of our vessels will have their first voyage after intermediate survey impacting the fourth quarter. As of today1s date, we have secured estimated backlog for 60% of vessel days in Q4 2019 booked at an average TCE per day of USD 27,000.”
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.