Pioneer Marine Inc. Announces Financial Results for the Third Quarter and Nine Months Ended September 30, 2017
(firmenpresse) - MAJURO, MARSHALL ISLANDS -- (Marketwired) -- 11/08/17 -- Pioneer Marine Inc. and its subsidiaries (OSLO-OTC: PNRM) ("Pioneer Marine," or the "Company") a leading shipowner and global drybulk handysize transportation service provider announced its financial and operating results for the third quarter and nine months ended September 30, 2017.
-- $10.9 million for Q3 2017, increased by $3.1 million or 39% compared to Q3 2016; Similarly, TCE per day was increased by 30% to $7,498 per day for the same period.
-- $32 million for the nine months in 2017, increased by $12.4 million or 63% compared to the same period in 2016; Similarly, TCE per day was increased by 55% to $7,496 per day for the same period.
-- $2.8 million positive Adjusted EBITDA for Q3 2017, increased by $2.3 million compared to $0.4 million for Q3 2016
-- $7.1 million positive Adjusted EBITDA for the nine months in 2017, increased by $9.5 million compared a negative figure for the same period in 2016
-- $0.8 million or $0.03 per share for Q3 2017, decreased by $2.1 million compared to Q3 2016
-- $7.5 million or $0.26 per share for the nine months in 2017, decreased by $15.9 million compared to the same period in 2016
Net loss for the third quarter and nine months ended September 30, 2017 include $1.3 million of restructuring costs and $0.1 million loss on vessel disposition, excluding these expenses, the net loss is $0.5 million or $0.02 per share basic and diluted for the third quarter of 2017 and $6.2 million or $0.21 per share basic and diluted for the nine months ended September 30, 2017, respectively.
During the nine-month period ended September 30, 2017, six vessels completed their Special Surveys resulting in Drydock expenditure of $3.2 million that are recognized as operating costs in the period.
The Company entered into an agreement with BaltNav A/S of Copenhagen, Denmark ("BaltNav") whereby part of the fleet will be commercially managed by BaltNav at an agreed daily fee. To date, two vessels have been delivered to BaltNav, with another six vessels expected to be delivered within the fourth quarter of 2017.
As of September 30, 2017, the Company had a total liquidity of $69.1 million inclusive of $12.8 million in restricted cash. The Company has no capital commitments
*For reconciliation and definition of Adjusted EBITDA refer to "Summary of Operating Data (unaudited)" section within this press release.
"The general sense of optimism pervading the freight market in the last three months or so, was in line with the latest update by the International Monetary Fund (IMF). The projected growth of 3.7% in 2018 is expected to be reflected to the demand for dry bulk market with a raise of tonmile and consequently the freight rates. Slower pace of bulker recycling caused a slight increase in the fleet growth rate, since the orderbook keeps declining from the subdued level of contracting.
"Dry bulk market made an impressive run during Q3 due to the constant demand for coal and iron ore along grains. BHSI index started the quarter around $6,800 per day before reaching around $9,000 per day by quarter end, a 32% increase. The market increase was mainly driven by Chinese demand. China is aiming to use higher quality iron ore and coal which creates optimistic prospects of growth for the fourth quarter. In the Atlantic, market turned around drastically and rates in USG kept going upwards. We anticipate good days to continue in the East as well.
"After the successful completion of the organizational changes over the last 6 months, the new Executive Management Team is fully committed to work towards successful accomplishment of the goal to maximize shareholders value. Our focus is on the two main drivers of profitability:
Strategic decisions to increase current fleet earnings and exploring new potential sources of revenues
Implementation of cost reduction measures for both operating expenses and general administration expenses without jeopardizing quality and safety of our fleet and people aiming to make Pioneer platform even more competitive and efficient.
"We strongly believe that the positive Drybulk market sentiment and the prospects for the forthcoming year as expected by various market players, will create opportunities for Pioneer to successfully accomplish its goals."
Time Charter Equivalent ("TCE") revenue amounted to $10.9 million in the third quarter of 2017 compared to $7.9 million for the third quarter of 2016. TCE per day for the third quarter of 2017 increased by 39% to $7,498 per day and utilization rate increased to 99% as compared to $5,763 per day and utilization rate of 98.6% for the third quarter of 2016.
The Company continues to keep vessels operating expenses ("OPEX") under control at $6.8 million or $4,647 per day for the third quarter of 2017. The total Opex are increased by only 10% in line with a similar increase of 7% to the ship days within the period.
General and administration expenses for the third quarter of 2017 decreased to $0.9 million or $620 per day, which is significantly reduced by 24% as compared to same quarter in 2016. The decrease in G&A expenses per day is attributed to the successful restructuring of the Company. The restructuring was completed within the third quarter of 2017and has positively contributed to our bottom line for the third quarter of 2017.
Interest expense and finance cost for both the three-month period ended September 30, 2017 and September 30, 2016 amounted to $1.4 million which is due to increased floating rates despite the decreased indebtedness.
Restructuring costs for the third quarter of 2017 amounted to $0.3 million and mainly includes consulting fees, legal fees and various expenses incurred in same period.
Time Charter Equivalent ("TCE") revenue amounted to $32 million for the nine months ended September 30, 2017 or $7,496 per day compared to $19.6 million or $4,830 per day in the same prior year period. The above figures present an increase of 63% in TCE revenues and 55% in TCE per day figures.
Vessel Operating Expenses ("OPEX") in line with Company's effort to maintain low operating cost, have amounted to $21.4 million for the nine months ended September 30, 2017 or at $4,794 per day. This represent a slight increase of 7% in the daily OPEX figures mainly attributable to the additional expenses incurred for the vessels that went into drydock in the first half of 2017 in relation to routine repair work and spares delivered while in drydock.
Drydock expense for the nine-month period ended September 30, 2017 amounted to $3.2 million since six vessels completed their special surveys within this period. No vessels were drydocked during the same period in 2016.
General and administration expenses for the nine-month period ended September 30, 2017 decreased to $3.1 or $696 per day as compared to $3.5 million or $858 per day during the same period in 2016. The decrease in G&A expenses per day is attributed to the successful restructuring the Company that was completed within the third quarter of 2017.
Interest expense and finance cost for the nine-month period ended September 30, 2017 increased to $4.2 million mainly due to reduction of capitalised interest given that Company's newbuilding program was effectively terminated on May 23, 2016.
Restructuring costs for the nine-month period ended September 30, 2017 amounted to $1.3 million and mainly includes severance payments to senior management, consulting fees, legal fees and various expenses incurred following the change of senior management announced by the Company on May 30, 2017.
About Pioneer Marine Inc.
Pioneer Marine is a leading ship owner and global drybulk handysize transportation service provider. Pioneer Marine currently owns fourteen Handysize, one Handymax and one Supramax drybulk carriers.
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, drydock 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.
Torben Janholt CEO
+45 21 639 232, +30 212222 3750
Capital Link, Inc.
Paul Lampoutis
+212 661 7566
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Datum: 08.11.2017 - 17:30 Uhr
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