Rickmers Trust Management Pte. Ltd. (“RTM”), the Trustee - Manager of Mainboard - listed Rickmers Maritime (the “Trust”), today announced the financial performance of the Trust for the third quarter and nine months ended 30 September 2013 , the company said in its press release.
Charter revenue held steady in 3Q2013, increasing 1% year - on - year to US$36.6 million. Vessel operating expenses increased marginally by 2% from US$8.8 million in the third quarter ended 30 September 2012 (“3Q2012”) to US$9.0 million in 3Q2013 , due to a con tractual increase in fixed operating expenses and vessel management fees. However , this was offset by reduced finance expenses, which fell 47% year - on year from US $ 10.9 million in 3Q2012 to US$5. 8 million in 3Q2013 , as a result of reduced outstanding bank loan balances and the expiry of interest rate swaps contracts which in turn lowered interest expenses incurred during the reporting quarter.
Consequently, net profit in 3Q2013 rose significantly by 59% from a year ago to US$13. 1 million. Rickmers Maritime successfully deleveraged its balance sheet further during the reporting quarter, repaying US$20. 5 million of secured bank loans, thereby lowering its outstanding secured bank loans to US$456.1 million. The Trust’s cash balance stood at US$57.8 million as at 30 September 2013 .
US$5.1 million to be distributed to u nitholders for 3Q2013 , the Trust maintain ed a distribution per unit of 0.6 US cent . The declare d distribution will be paid to u nith olders on 27 November 2013.
Rickmers Maritime achieved a n outstanding vessel utilisation rate of 99.9% in 3Q2013. Its fleet of 16 containerships is fully chartered out, all of which are on fixed - rate time charters with an average remaining charter period of 2.5 years. Moreover, the vessel Kaethe C. Rickmers ’ charter to M editerranean Shipping Company S. A. was extended during the quarter by a further six mont hs, from 25 September 2013 to 24 March 2014 1 . Through existing charter agreements, the Trust has US$372.1 million of se cured revenue between 1 October 2013 and the expiry of the last charter party contract in 2019 .
Rickmers Maritime’s fleet is fully employed in 2013 and , at this point , 83% employed in 2014 . W ith the majority of the Trust’s fleet employed till 2015, the existing leases will continue to generate ongoing positive cash flow, barring any unforeseen circumstances. OUTLOOK Trade growth is projected to reach around 4.7% in 2013 2 , and accelerate to around 6.2% in 2014 2 , subject to global economic developments. Continued uncertainty in the global economy and high oil prices pose downside risks. A significant number of new ships, mostly very large vessels in excess of 10,000 TEU, is scheduled to be delivered over the next 12 mo nths.
This would add to the prevailing over - supply, which is likely to outstrip demand in the near term despite an increase in the scrapping of existing ships and continued slow - steaming . Vessel values and time charter rates are therefore expected to begin recover ing only in 2014. Mr Thomas Preben Hansen , the Chief Executive Officer of RTM, commented, “ Given hopes of an e xpected beginning of recovery in the container shipping industry next year, we will continue strengthening our balance sheet , positioning us to capitalise on growth opportunities as and when 1 +/ - 30 days at the charterer’s option 2 According to Clarkson Research Services, September 2013 Page 3 of 3 they arise. Until then, we remain in a resilient position , with our defensive fixed - rate charter agreements providing us with stable and positive cash flows.” End This press release should be read in conjunction with Rickmers Maritime’s Third Quarter and Nine Months Ended 30 September 2013 Financial Statements and Presentation Ma terials released via SGXNet on 22 October 201 3 .