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 July 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

KEP Marine Unveils KMGBL

KEP Marine – the manufacturer of type approved displays, computers and peripherals, announced  the release of the affordable, high-quality KMGBL Glass Bridge Light Displays.

New Load Measurement Solution for Port of Dampier

Strainstall designs and delivers a load measurement solution for the world’s largest floating wharf at Port of Dampier.   Strainstall, part of James Fisher and Sons plc,

Rolls-Royce Power Package for USS Zumwalt

Rolls-Royce announced delivery of the twin fixed pitch propellers to Bath Iron Works for installation on the U.S. Navy’s most modern surface combatant, the future USS Zumwalt,

Tanker Trends

Singapore MPA Wants LNG Bunkering Options

Singapore's Maritime Port Authority is seeking proposals on liquefied natural gas bunker supplies as it shifts away from fossil fuels towards gas while trying to

NewLead Holdings Announces Commercial Competency of MT Sofia

NewLead Holdings Ltd.announced today a review of the commercial competency of one of its bitumen tanker vessels, the MT Sofia since the vessel was delivered to NewLead's fleet.

Scorpio Tankers to Acquire Product Tanker

Scorpio Tankers Inc. announced today that it has entered into an agreement to purchase an MR product tanker. The Company reached an agreement with an unrelated

Finance

Work Begins on $1.6 bln Container Terminal at Jebel Ali Port

DP World Chairman Sultan Ahmed Bin Sulayem announced the start of construction work on a brand new container terminal at Jebel Ali Port, Dubai.   Phase 1 of the

Singapore MPA Wants LNG Bunkering Options

Singapore's Maritime Port Authority is seeking proposals on liquefied natural gas bunker supplies as it shifts away from fossil fuels towards gas while trying to

China's Navy Drills in South China Sea

China said it conducted air and sea drills in the South China Sea on Tuesday as it stakes an increasingly assertive claim to virtually the whole sea despite rival claims by neighbours.

 
 
Maritime Careers / Shipboard Positions Maritime Security Maritime Standards Offshore Oil Pod Propulsion Port Authority Salvage Ship Electronics Sonar Winch
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: 0.1610 sec (6 req/sec)