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

People & Company News

Damen Responds to Evolving Fishing Practices

Maaskant Shipyards Stellendam meets fishing sector’s growing needs by performing electric pulse fishing conversions   As European fishing policies evolve, so fishing techniques advance.

Maaskant Shipyards Earns ISO 9001:2008 Certificate

Maaskant Shipyards (Stellendam), part of Damen Shipyards Group, has received certification from Bureau Veritas for aligning its quality and management systems with

Duffy Named President of Carnival Cruise Line

Christine Duffy has been named president of Carnival Cruise Line, Carnival Corporation & plc. announced today.   Duffy, currently president and CEO of Cruise Lines International Association (CLIA),

Tanker Trends

INTERTANKO Launches ECA Bunker Surcharge Clauses

INTERTANKO’s documentary committee has launched bunker surcharge clauses for Emission Control Areas (ECA).   Rising bunker prices due to rising oil prices and

DSME Returns for More Dual-Fuel Engines

MAN Diesel & Turbo received an order for four MAN B&W 5G70ME-GI engines in connection with Daewoo Shipbuilding & Marine Engineering Co.,Ltd. (DSME) agreeing a deal

USCG Addresses Future of Marine Fuels

The future of marine fuels from the Liquefied Gas Carrier National Center of Expertise   The Pacific Merchant Shipping Association hosted The Future of Marine

Finance

Transpacific Box Shippers Plan Freight Rate Rise

A container shipping organisation urged companies on Wednesday to raise Asia-U.S. freight rates by at least $600 per 40-foot container (FEU) from Jan. 15, corresponding to an increase of 26.

Container Volumes on the Rise in South Carolina

Container volume up 13 percent at South Carolina Ports Authority; Charleston benefiting from federal appropriations    The SC Ports Authority announced another

Liebherr Expects Turnover Dip

For the 2014 business year, the Liebherr Group is currently anticipating an overall turnover of 8,866 million euros (2013: 8,964 million euros). In the area of construction machines and mining,

News

Damen Responds to Evolving Fishing Practices

Maaskant Shipyards Stellendam meets fishing sector’s growing needs by performing electric pulse fishing conversions   As European fishing policies evolve, so fishing techniques advance.

Maaskant Shipyards Earns ISO 9001:2008 Certificate

Maaskant Shipyards (Stellendam), part of Damen Shipyards Group, has received certification from Bureau Veritas for aligning its quality and management systems with

Duffy Named President of Carnival Cruise Line

Christine Duffy has been named president of Carnival Cruise Line, Carnival Corporation & plc. announced today.   Duffy, currently president and CEO of Cruise Lines International Association (CLIA),

 
 
Maritime Careers / Shipboard Positions Maritime Security Maritime Standards Navigation Pod Propulsion Port Authority Salvage Ship Electronics Shipbuilding / Vessel Construction Sonar
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: 0.2186 sec (5 req/sec)