Earnings 3rd quarter 2009
(Thomson Reuters ONE) - RESULTBelships' operating income in the 3rd quarter of 2009 was USD14,643,000 (3rd quarter 2008: USD 22,569,000). The company'soperating profit totalled USD 1,056,000 (USD 7,459,000). Thisreduction in operating income is essentially due to reduced activityin Elkem Chartering's handysize operations. The operating result forthe 3rd quarter included a profit of NOK 3.5 million relating to thecancellation of a charter.In the 3rd quarter, the company had net financial expenses of USD632,000, and the net result of the period amounted to USD 387,000(USD 5,024,000).Profit after tax in the first three quarters of the year was USD2,121,000 (USD 13,366,000).The accounts for the 3rd quarter of 2009 were prepared in accordancewith IAS 34, Interim Financial Reporting. A statement on theaccounting policies 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).OPERATIONSThe rates for large bulkers fell considerably in the course of theperiod due to less activity among Chinese steel producers. For thesmaller vessels, on the other hand, the rates were relatively stableand at a level that is strong historically, but far below the levelof one year back.Elkem Chartering continued its operations at a lower level ofactivity than what has been typical over the last few years. Thisreflects a lack of new interesting opportunities, combined withcaution due to uncertain market developments.In August, Belships received the first newbuilding from China, whichwas named M/S Belstar. The vessel entered immediately on itslong-term charter for Canadian charterers and its technicalperformance has been excellent.As reported previously, the option to purchase the M/S Belisland wasexercised, and an agreement was signed at the same time on sale ofthe vessel to Greek buyers. Delivery took place in the beginning ofOctober, and the profit of about USD 10 million will be booked in the4th quarter. The M/T Belaia continued on its charter without anysignificant interruptions.FINANCIAL POSITION AND OTHER MATTERSAt 30 September, the group's liquid reserves totalled USD 17.5.6million, against USD 30.0 million at 30 June. The M/S Belstar wasdelivered in the 3rd quarter. The vessel was financed through along-term mortgage loan of USD 22 million. The bridge financing ofUSD 20 million was repaid in August. Of the total contractualliability of USD 77.6 million on the two remaining newbuildings, USD23.4 million has been paid and USD 44 million has been securedthrough long-term debt financing. Belships has a bond loan of NOK101.4 million (USD 16.1 million). An agreement was signed with thebondholders in May this year on partial extension of the term of theloan, and on an option for Belships to pay the current coupon withnew bonds (payment in kind). This option was exercised in the 3rdquarter, and interest accrued during the period was added to theoriginal loan amount. The loan has been hedged against USD.The company has carried out impairment tests for its assets inconformity with IAS 36. The M/S Belstar and the remaining newbuildingcontracts were assessed on the basis of observable market values andthe time charters concluded, which, based on a discretionaryassessment of counterparty risk, were discounted by 12%. Based onthese internal valuations, there is, as per today, no need forimpairment.At the end of the 3rd quarter, book value per share amounted to NOK10.75, while the book equity ratio was 48.4%.OUTLOOKSo far in the 4th quarter, the dry-bulk market has been strengthened,and this applies in particular to the rate level for the largestvessels. Newbuilding prices have dropped considerably, notunexpectedly, and this is spreading also to second-hand bulkerprices.Elkem Chartering's earnings in the 4th quarter are expected to be onthe level of that of the previous quarter.Oslo, 29 October 2009The Board of BELSHIPS ASAhttp://hugin.info/17/R/1352229/327058.pdfThis announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.
Datum: 03.11.2009 - 11:00 Uhr
Sprache: Deutsch
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