Report 2nd quarter 2009
(Thomson Reuters ONE) - RESULTSBelships' operating income in the 2nd quarter of 2009 was USD13,247,000 (2nd quarter 2008: USD 25,705,000). The company'soperating result totalled USD -5,000 (USD 4,884,000). This reductionin operating income and operating profit is essentially due to thegenerally reduced rates and activity in Elkem Chartering's handysizeoperations.In the 2nd quarter the company had a positive result of financialitems, and result after tax was USD 309,000 (USD 4,477,000).Result after tax for the first six months of the year was USD1,734,000 (USD 8,342,000).The accounts for the 2nd quarter of 2009 were prepared in accordancewith IAS 34, Interim Financial Reporting. A statement on theaccounting principles applied by the group in preparing the accountsappears in the 2008 annual accounts. The interim accounts have beenprepared in conformity with the International Financial ReportingStandards (IFRS).OPERATIONSStrong Chinese demand for bulk goods, particularly iron ore, and areduction in the number of newbuildings delivered resulted in higherrates in the dry bulk market in the 2nd quarter.The rate level in the Atlantic was higher than in the Pacific. Thishad a negative effect on Elkem Chartering's earnings, which declinedcompared to the 1st quarter.The handymax ships M/S Pax Phoenix and M/S Legend Phoenix continuedtheir respective charters. The same applied to Belships' own tonnage,M/T Belaia and M/S Belisland.Negotiations concerning long-term financing of the company's threenewbuildings were concluded in the 2nd quarter with a satisfactoryresult.The first newbuilding was named M/S Belstar and was delivered on 14August.Belships exercised its option to buy M/S Belisland, and at the sametime an agreement was signed on sale of the ship to Greek buyers. Thetransactions are expected to provide a gain of USD 9 - 10 million,depending on the USD/YEN exchange rate. Delivery will take place inthe course of the last six months of 2009.FINANCIAL POSITION AND OTHER MATTERSAt 30 June, the Group's liquid reserves totalled USD 30.0 million,against USD 47.6 million at 31 December. As scheduled, USD 8.1million was paid during the 2nd quarter on the first newbuilding. Ofthe total contractual obligation of USD 118.2 million, USD 48.0million has been paid. At the end of the 2nd quarter the company hada debt of USD 20.0 million relating to bridge financing ofnewbuildings. This loan has now been repaid and replaced by along-term mortgage loan of USD 22.0 million. In addition, Belshipshas a bond loan of NOK 100 million (USD 15.6 million). The loan hasbeen hedged against currency risks and the unrealised loss from thistotalled USD 0.4 million at 30 June. The amount has been booked inthe balance sheet under long-term liabilities.Due to the general decline in the market over the past six months,the company carried out impairment tests for its assets in conformitywith IAS 36. The remaining newbuilding contracts were assessed on thebasis of observable values for corresponding contracts today and thetime charters concluded, which, based on a discretionary assessmentof counterparty risk, were discounted by 12%. Based on these internalvaluations there is, as per today, no need for impairment.At the end of the 2nd quarter, book value per share amounted to NOK12, while the book equity ratio was 50.3%.OUTLOOKIt seems that the authorities' measures to counteract theconsequences of the financial crisis are taking effect. Financialgrowth is again particularly strong in China.The high volume of iron ore import leads to stockpiling and a changein this will have a considerable impact on the rate level in the drybulk market.Elkem Chartering's portfolio of chartered tonnage is expected to bereduced considerably in the course of the second half of the year andthe profit contribution will depend on market developments.Oslo, 20 August, 2009The Board of BELSHIPS ASAhttp://hugin.info/17/R/1339031/319648.pdfThis announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.
Datum: 02.09.2009 - 14:24 Uhr
Sprache: Deutsch
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