Nordic Shipholding A/S Releases First Quarter Results

MarineLink.com
Thursday, May 30, 2013

Nordic Shipholding A/S announced its first quarter financial results for 2013.

Summary

(The comparison figures for first quarter 2012 are stated in parenthesis.)

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 in Q1 of this year notified the company that installments and loan covenants are only deferred until June 30, 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 the company's banks are in firm discussions with potential investors regarding potential equity injections. In case those discussions with the potential investors prove futile, the company's banks desire to carry out a controlled winding up of the company. The company and the company’s banks continue discussions regarding a potential extension of the moratorium that expires on June 30, 2013 in order to allow sufficient time to negotiate and conclude a potential equity injection or a controlled wind up 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 expected off-hire period is six months. The cost of approx. $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 Q1 2013 closed down dormant subsidiaries in Singapore and the USA and expects to close down dormant subsidiaries in Denmark in Q2.

In the first quarter of 2013, the Time Charter Equivalent (TCE) revenue decreased by $1.6 million to $5.7 million ($7.3 million). The off-hire of Nordic Ruth is the main reason for the decline in revenue. In Q1 in 2013 EBITDA declined from $3.4 million in Q1 2012 to $1.3 million.

Year to date, the cash flow from operations was $1.5 million primarily deriving from operating activities including working capital improvements. The comparable figure for Q1 2012 was $1 million.

This quarterly report covers the period January 1-March 31, 2013 and consists of figures related to both the chemical segment (discontinued operations) that was sold in Q2 2012 and product segment (continued operations).

www.nordicshipholding.com

 

Maritime Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter June 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

HCI Capital Renamed Ernst Russ AG

A vote was passed at the ordinary shareholders’ meeting of HCI Capital AG yesterday to change the company’s name to Ernst Russ AG. The Executive Board and Supervisory

CMA CGM to use Kingston As Transshipment Hub

French shipping giant CMA CGM plans to use Kingston Container Terminal,  Jamaica as a strategic Caribbean transshipment hub for an enlarged Panama Canal. The Port connects to US East Coast,

Conrad Shipyard Forms LNG Business Unit

Conrad Shipyard has formed a new business unit focused on LNG projects.   Conrad, builder of North America’s first LNG bunker barge scheduled for 2017 delivery,

Tanker Trends

VL-exit?

Earlier this week spot returns in the VLCC market touched their lowest level since October 2014, with TCE earnings for Middle East/Japan (TD3) falling close to $20,

RS Rules Conform to the IMO Goal-based Standards

The rules of the Russian Maritime Register of Shipping are in conformity to the International Maritime Organization (IMO)goal-based standards (GBS), the IMO’s Maritime

Asia Tankers-VLCC Rates to Climb Slowly

Around 47 MidEast charters fixed for July loading so far; older tonnage and new vessels a drag on freight rates. Freight rates for very large crude carriers

Finance

VEB Guarantees $3 Bln of Yamal LNG Debt

Russian development bank VEB said on Friday it had provided a guarantee for $3 billion of debt to the Yamal liquefied natural gas (LNG) project, led by Russian gas firm Novatek.

US Oil Drillers Cut Rigs after 3 Weeks of Additions

U.S. oil drillers cut rigs this week for a 20th week this year after three weeks of additions, according to a closely followed report on Friday, as crude prices

World Stocks Tumble as Britain Votes for EU Exit

Global capital markets reeled on Friday after Britain voted to leave the European Union, with $2 trillion in value wiped from equity bourses worldwide, while money

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Naval Architecture Offshore Oil Port Authority Ship Electronics Ship Repair Shipbuilding / Vessel Construction Sonar
rss | archive | history | articles | privacy | 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: 0.0825 sec (12 req/sec)