Nordic Interim Report H1 2013

MarineLink.com
Thursday, August 29, 2013

Nordic Shipholding released a report covering the period January 1-June 30, 2013 and consisting of figures related to both the chemical tankers (discontinued operations) that was sold in Q2 2012 and product tankers (continued operations).

The company has had a moratorium on its product tanker debt in the past years and has therefore been in close dialogue with its banks and several potential solutions to the company’s financial problems have been considered.

However, the banks have notified the company that installments and loan covenants are only deferred three months at a time and latest until December 31, 2013. As a consequence of this, the company has by the end of 2012 written-down the value of its vessels to an estimated market level of $123 million, accordingly, the share capital is lost, and the debt is reclassified as short-term.

Both the company and its banks are in firm discussions with a potential investor regarding equity injections. The company expects to enter into an agreement with the new investor. In case these discussions with the potential investor prove futile, the company's banks desire to carry out a controlled winding up of the company. The company and its banks continue discussions regarding a potential extension of the moratorium that expires on December 31, 2013 in order to allow sufficient time to negotiate and conclude a potential equity injection or a controlled wind up and to ensure there is no disruption to the operation of the vessels.

In December 2012, Nordic Ruth went off-hire due to severe damages in the vessel’s water ballast tanks. The vessel went on-hire again in July 2013 and is now trading in the Handytankers pool. The cost of approximately $8.5 million related to the repair and part of the off-hire period is expected to be covered by the insurance.

The company has in 2013 closed down 12 subsidiaries in Singapore, the U.S. and Denmark by solvent liquidation, which were dormant after the sale of the chemical tanker activity.

In the first half of 2013, the Time Charter Equivalent (TCE) revenue decreased by $1.6 million to $11.8 million ($13.4 million). The decline in revenue is due to the off-hire of Nordic Ruth.

EBITDA declined from $4.7 million in the first half 2012 to $ 1.7 million in 2013.

Year to date, the cash flow from operations was -$2.0 million primarily deriving from operating activities and was impacted by decreased TCE revenue due to Nordic Ruth being off-hire and other one-off costs. The comparable figure for the first half 2012 was -$3.5 million excluding discontinued activities.

The average broker valuation of the fleet is on par with book values.

For both the handy tanker vessels and the LR1 vessel the spot earnings have declined in Q3 compared to the average earnings in the first half of 2013.

nordicshipholding.com
 

Maritime Reporter February 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Zamakona, Finnish GS-Hydro Ink Deal

The presentation ceremony of the Finnish multinational leader in water services GS-Hydro, new partner of Zamakona Yards in Canarias was held yesterday (January 29th at 7 p.

Naval EXPO Coming to Washington

For the first time ever, the general public will be admitted free to the Naval Future Force Science and Technology EXPO general exhibit hall Feb. 4-5 where they

Adani Group Revamps Businesses

Adani Enterprises Limited together with its subsidiaries Adani Ports and Special Economic Zone Limited (“APSEZ”) and Adani Power Limited (“APL”) today announced

Finance

Adani Group Revamps Businesses

Adani Enterprises Limited together with its subsidiaries Adani Ports and Special Economic Zone Limited (“APSEZ”) and Adani Power Limited (“APL”) today announced

PHA Budgets $ 275 mi for Capital Improvements

In 2015, the Port of Houston Authority has budgeted $275 million for various capital improvement projects. About $184 million is being allocated to its container

Shippers Must Monitor Greek Government Changes

Moore Stephens says shipping must monitor developments in wake of Greek government change   International accountant and shipping adviser Moore Stephens says

News

Zamakona, Finnish GS-Hydro Ink Deal

The presentation ceremony of the Finnish multinational leader in water services GS-Hydro, new partner of Zamakona Yards in Canarias was held yesterday (January 29th at 7 p.

Naval EXPO Coming to Washington

For the first time ever, the general public will be admitted free to the Naval Future Force Science and Technology EXPO general exhibit hall Feb. 4-5 where they

Adani Group Revamps Businesses

Adani Enterprises Limited together with its subsidiaries Adani Ports and Special Economic Zone Limited (“APSEZ”) and Adani Power Limited (“APL”) today announced

Insurance

A HERO on the Seas

The expansion of the Panama Canal has opened up an opportunity for WWL to develop its next generation RoRo carriers. Due to its importance to international trade,

ZIM Launches Monitoring and Tracking Service

ZIM integrated shipping services has announced the launching of a new monitoring, tracking and security services package, specifically designed for valuable and

Oil Tankers are Front Line of Libya's Struggles

Crew members killed in tanker attack this month; West fears worsening violence could lead to civil war. Oil shippers face higher costs and the possible loss of insurance cover on Libyan voyages,

 
 
Maritime Contracts Maritime Security Maritime Standards Naval Architecture Offshore Oil Pipelines Salvage Ship Simulators Sonar Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.3651 sec (3 req/sec)