Pioneer Marine Inc. Announces Third Quarter 2014 Results
(firmenpresse) - MAJURO, MARSHALL ISLANDS -- (Marketwired) -- 12/09/14 -- Pioneer Marine Inc. (OSLO-OTC: PNRM) ("Pioneer Marine," or the "Company"), a leading shipowner and global drybulk handysize transportation service provider, announced its unaudited financial and operating results for the third quarter ended September 30, 2014.
For the third quarter 2014, the Company reported a net loss of $5.0 million, or $0.22 basic and diluted loss per share, as compared to a loss of $2.5 million or $0.11 basic and diluted loss per share for the second quarter of 2014.
During the third quarter, Pioneer drew down on a $47.4 million facility with CIT Finance LLC and on a $72 million facility with ABN AMRO Bank N.V. and DVB Bank Ltd. to partially refinance the purchase price of thirteen vessels.
On November 20, 2014, ABN AMRO Bank N.V. committed to participate, subject to the satisfaction of certain conditions, as one of the lenders to a Senior Secured Facility of up to $156.6 million for the purpose of financing our newbuilding program. ABN AMRO will also act as Bookrunning Mandated Lead Arranger to the facility. The facility will be for 12 newbuildings and will be partly covered by a Sinosure guarantee. Pioneer expects to receive further commitments from other participating banks within the upcoming weeks.
During the third quarter of 2014 the Company made progress payments of $17.3 million relating to eight hulls delivering in 2015 and 2016.
Pankaj Khanna, Chief Executive Officer, commented, "We are pleased with the arrangement of the debt facility for our Green Dolphin newbuildings and appreciate the support provided by our banks as we continue to grow.
"Pioneer has now built a Handysize focused operating platform and is among the top 15 Handysize owners. We are positioned to consolidate this fragmented sector further with like-minded operators and financial sponsor backed companies. The benefits of scale are most evident for smaller vessels as operational synergies, access to cargo and capital is available for the larger, well capitalized companies with modern fleets.
"The return of volatility in the drybulk freight market for the larger vessels signifies a supply-demand equation that appears to be coming back into balance after four years of over-supply. The market recovery has been delayed due to the 7% decline seen in Chinese coal imports (Jan-Sep 2014 versus prior period) precipitated by a 24% surge in hydro-electric production in the same period. However, forecasts for 2015 suggest that Chinese coal imports may rebound as hydro-electric production returns to more normal levels. The demand for minor bulk has been negatively impacted during 2014 by the ban on Indonesian exports of unprocessed mineral, however, we are now seeing long-haul trades of bauxite from West Africa and elsewhere to China, as stocks built in anticipation of the ban are rundown. Overall drybulk demand forecasts for 2015 are still in the 5-7% range based on volume alone and not accounting for the tonne-mile effect for example from rising Brazilian iron ore exports. We remain cautiously optimistic about the prospects for 2015."
Net revenue for the three month ended September 30, 2014 amounted to $11.1 million as compared to $12.2 million in the three months period ended June 30, 2014, decreased by $1.1 million or 8.7%. The number of operating days in the third quarter of 2014 increased to 1,182.5 days as compared to 1,138.8 days in the second quarter of 2014 and 573.5 operating days in the first quarter of 2014. During first quarter of 2014 eight vessels were added to the existing operating fleet of four vessels and during second quarter MV Jupiter Bay was delivered to us, increasing the total operating fleet to 13 vessels at the end of the second and third quarter.
Time Charter Equivalent ("TCE") revenue (Net Revenue less Voyage Expenses) amounted to $6.8 million in the three month period ended September 30, 2014 as compared to $7.5 million in the three month period ended June 30, 2014. TCE per day for the three month period ended September 30, 2014 amounted to $5,712, while for the three month period ended June 30, 2014 amounted to $6,551.
Vessel Operating Expenses ("OPEX") increased by $0.5 million for the three month period ended September 30, 2014 to $6.9 million as compared to $6.4 million in the three month period ended June 30, 2014, partially due to the increased fleet size and consequently increased ship days of the fleet. Daily OPEX increased to $5,749 per day in the three month period ended September 30, 2014 as compared to the three month period ended June 30, 2014 that amounted to $5,519.
General and Administration Expenses increased by $0.4 million for the three month period ended September 30, 2014 to $1.3 million as compared to $0.9 million in the three month period ended June 30, 2014 mainly due to increased professional fees and increased headcount.
Interest expense and finance cost, net incurred during the three month period ended September 30, 2014 amounted to $0.9 million and relates to bank loan interest of $0.9 million, amortization of deferred finance fees and other finance charges of $0.2 million partially offset with interest of $0.3 million capitalised to vessels under construction.
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About Pioneer Marine Inc.
Pioneer Marine Inc. is a leading shipowner and global drybulk handysize transportation service provider. Pioneer Marine currently owns twelve Handysize and one Handymax drybulk carriers with an additional 14 Handysize newbuildings on order for delivery in 2015. The Handysize Green Dolphins newbuildings are 'Eco' vessels designed by SDARI.
Forward-Looking Statements
Matters discussed in this press release may constitute forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides safe harbor protections for forward-looking statements in order to encourage companies to provide prospective information about their business. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts. The Company desires to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and is including this cautionary statement in connection with this safe harbor legislation. The words "believe," "anticipate," "intends," "estimate," "forecast," "project," "plan," "potential," "may," "should," "expect," "pending" and similar expressions identify forward-looking statements.
The forward-looking statements in this press release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, our management's examination of historical operating trends, data contained in our records and other data available from third parties. Although we believe that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, we cannot assure you that we will achieve or accomplish these expectations, beliefs or projections.
In addition to these important factors, other important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include the failure of counterparties to fully perform their contracts with us, the strength of world economies and currencies, general market conditions, including fluctuations in charter rates and vessel values, changes in demand for dry bulk vessel capacity, changes in our operating expenses, including bunker prices, drydocking and insurance costs, the market for our vessels, availability of financing and refinancing, charter counterparty performance, ability to obtain financing and comply with covenants in such financing arrangements, changes in governmental rules and regulations or actions taken by regulatory authorities, potential liability from pending or future litigation, general domestic and international political conditions, potential disruption of shipping routes due to accidents or political events, vessels breakdowns and instances of off-hires and other factors.
Pioneer Marine Inc.
Pankaj Khanna
President and CEO
Capital Link, Inc.
Paul Lampoutis
+212 661 7566
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Datum: 09.12.2014 - 18:00 Uhr
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News-ID 358299
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