Aries Maritime Transport suspends dividends
Nasdaq-listed tanker owner Aries Maritime Transport has suspended its quarterly dividend.
The suspension announcement has come even though it recently sold-off some of its vessels, a move which reports said should boost the Greece-based company's second quarter (Q2) profits.
The company's full Q2 results are slated to be released this Thursday September 18.
The suspension “follows the management's strategic review of the company's business and reflects the company's focus on improving its long-term strength and operational results,” said Aries to the Nasdaq last Friday.
“The board has made a prudent decision to suspend Aries' quarterly dividend as management implements a comprehensive turnaround plan aimed at improving future performance and enhancing shareholder value.”
Industry sources have highlighted market pessimism at the company's financial health, especially for the rest of this year.
Even though the company has announced an expected net Q2 profit of $13.1 million, $13.6 million of this comes from the vessel sales, which basically means it has suffered an operating loss for Q2.
“The company has incurred a net loss, has a net working capital deficit and has not met certain of its financial covenants of debt agreements with lenders,” accountants PricewaterhouseCoopers were quoted saying earlier this year.