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

People & Company News

Henderson, Hanes & Associates Opens Doors in Miami

Ocean Engineering/ Naval Architecture Firm Brings Innovation to the Mega Yacht Community The Miami-based ocean engineering and naval architecture firm of Henderson & Associates, Inc.

DOF Installer Sells Offshore Vessel

DOF Subsea AS subsidiary, DOF Installer ASA, reported the sale of one of its three sister ships, an anchor handling tug supply (AHTS) vessel, to an international buyer.

Scanjet Secures 30-ship Tank Management Order

Scanjet Group has followed up its Tank Management order from Stolt-Nielsen with a series of contracts for its ITAMA Intelligent Tank Management concept including Tankcleaning,

Tanker Trends

Scanjet Secures 30-ship Tank Management Order

Scanjet Group has followed up its Tank Management order from Stolt-Nielsen with a series of contracts for its ITAMA Intelligent Tank Management concept including Tankcleaning,

Odfjell Finalizes LPG/Ethylene Joint Venture Deal

Following Odfjell SE’s May 16, 2014 announcement declaring the signing of a definitive agreement to form a LPG/E shipping joint venture, Odfjell today announced

Scanjet Bags Multiple Tank Management Orders

SCANJET Group has followed up its breakthrough Tank Management order from Stolt-Nielsen with a series of contracts for its ITAMA Intelligent Tank Management concept including Tankcleaning,

Finance

DryShips: Public Offering of Its Senior Secured Notes

DryShips Inc. announced today that it intends to offer senior secured notes due 2017 (the “Notes”) pursuant to its effective shelf registration statement. The Company

DOF Installer Sells Offshore Vessel

DOF Subsea AS subsidiary, DOF Installer ASA, reported the sale of one of its three sister ships, an anchor handling tug supply (AHTS) vessel, to an international buyer.

Port City Plans for New Cargo Taxes Angers Kenya Govt, Shippers

Proposals by a local authority to impose new taxes on cargo at Kenya's main port has drawn opposition from the government and shippers, saying it will hike import

 
 
Maritime Security Maritime Standards Naval Architecture Navigation Port Authority Salvage Ship Electronics Ship Repair 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: 0.1066 sec (9 req/sec)