Rickmers Maritime reports results for FY2013
Rickmers Trust Management Pte. Ltd., the Trustee - Manager of Mainboard - listed Rickmers Maritime, today announced the financial performance of the Trust for the fourth quarter and full year ended 31 December 2013, the company said in its press release.
Charter revenue remained stable at US$36.4 million in 4Q2013, marginally higher than the US$36.3 million recorded in the previous corresponding quarter (“4Q2012 ” ). Vessel operating expenses increased 2% year - on - year in both 4Q2013 and FY2013, to US$9.0 million and US$36.1 million respectively, as a result of a contractual increase in fixed operating expenses and vessel management fees. However, the increases were offset by lower finance expenses due to a reduction in outstanding bank loans and the expiry of five interest rate swap contracts over the course of the year.
Finance expenses decreased to US$5.7 million in 4Q2013 and US$27.5 million in FY2013 , down 42% and 31% from US$9.8 million in 4Q2012 and US$ 39.6 million in the previous corresponding year (“FY2012” ). During the reporting period, a US$2.4 million provision for vessel impairment was made for Kaethe C. Rickmers . A goodwill impairment of US$18.4 million was also recognised in 4Q2013 , up from US$2.1 million a year ago.
Consequently, the Trust reported a net loss of US$8.0 million in 4Q2013 and a lower net profit of US$23.5 million in FY2013, compared to net profits of US$2.2 million and US$27.6 million in 4Q2012 and FY2012 respectively. The Trust remained operationally robust, reporting adjusted EBITDA of US$26.7 million in 4Q2013 and US$104 .5 million in FY2013, broadly in line with the US$26 .8 million and US$106 .2 million reported in the previous corresponding quarter and year respectively. Repaying US$126.1 million of secured bank loans over the course of 2013, Rickmers Maritime successfully strengthened its balance sheet. As at 31 December 2013, the Trust’s cash balance stood at US$61.6 million.
Reporting US$5.1 million to be distributed to unitholders for 4Q2013, the Trust maintained a distribution per unit of 0.6 0 US cents , consistent with previous quarters. The declared distribution will be paid to unitholders on 27 March 2014 .
Rickmers Maritime ’s fleet of 16 containerships is fully chartered out on fixed - rate time charters. The fleet utilisation rate was consistently high throughout the year, at 99.7% for both 4Q 20 13 and FY2013 . The charter of Kaethe C. Rickmers to Mediterranean Shipping Company S.A. (“MSC”) has been renewed for a further three months from 23 March 2014, with an option for MSC to extend the charter for another three months .
The Trust has US$338.7 million of secured revenue for the period between 1 January 2014 and the expiry of the last charter party contract in 20 19 through existing charter agreements . Rickmers Maritime’s fleet is 85 % covered at this point for the remainder of 2014. With the majority of the Trust’s fleet employed until 2015, barring any unforeseen circumstances, the existing leases will continue to generate ongoing positive cash flow.
Trade growth is projected to reach 6.0% in 2014, subject to global economic development, compared to an estimated 5.0% growth in 2013. While uncertainty in the global economy remains , there are signs that a recovery in the shipping industry could begin this year. A significant number of new containerships, mostly in excess of 10,000 TEU, are scheduled for delivery over the next twelve months. Despite an increase in the scrapping of existing ships and continued slow - steaming, demand is unlikely to absorb the prevailing over - supply within the near term. As a result, time charter rates and vessel values are expected to onl y begin recovering towards the end of 2014.
Mr Thomas Preben Hansen , the Chief Executive Officer of RTM, commented, “ The actions we have taken in recent months, coupled with Rickmers Maritime’s fun damentally strong structure, have enabled the Trust to weather the challenging conditions still fac ed by the shipping industry. We will continue the process of strengthening our balance sheet, and positioning ourselves to take advantage of opportunities in the market when they arise”.