OceanFreight Inc. Reports Financial Results for the Third Quarter 2009
4:05p ET November 10, 2009 (Market Wire)
OceanFreight Inc. (NASDAQ: OCNF), a global provider of marine transportation services, today announced its financial results for the quarter ended September 30, 2009.
Financial Highlights
For the three-month period ended September 30, 2009, the Company reported Net Loss of $13.3 million or basic and diluted loss per share of $0.15. Included in these results are:
-- A book loss of approximately $20.8 million associated with the sale of
the M/V Richmond which was delivered to the new owners on September 30,
2009.
-- A loss of $2 million associated with the change in fair value of
interest rate swaps.
Excluding the above items Net Income for the third quarter of 2009 would be $9.5 million or $0.11 per share.
Anthony Kandylidis, the Company's President and Chief Executive Officer, commented:
"Excluding the one off charges due to the sale of an older panamax vessel, our net income on an operating basis would have been about 11 cents per share, well above analyst expectations. OceanFreight is very privileged not to have any capital commitments at this time. With our proven access to capital and our track record of sourcing modern high quality tonnage with fixed employment we continue to renew our fleet and enhance the longevity of our cash flows. As of the day of this press release we have secured gross revenues of $115 million until the end of 2010 with 92% fleet charter coverage for the remainder of 2009 and 72% for 2010. We remain uniquely positioned among our competitors to use fresh capital to finance asset opportunities at historically low values, which we believe will be accretive to shareholder value over the long term."
Fleet Developments
-- The Company delivered to their new owners the vessels M/V Lansing, the
M/V Richmond and the M/V Juneau on July 1, 2009, September 30, 2009 and
October 23, 3009, respectively, for an aggregate sale price of $62.4
million.
-- The Company took delivery of the M/V Partagas, a 2004-built 173,880
dwt Capesize drybulk carrier and the M/V Robusto a 2006-built 173,949
Capesize drybulk carrier, on July 30, 2009 and October 19, 2009,
respectively, for a total cost of $117.25 million. Upon delivery, the
vessels commenced fixed rate employment on time charters for a three year
and five year minimum period at a gross daily rate of $27,500 and $26,000
per day, respectively.
-- In addition, as previously announced the Company has entered into
agreements to purchase a 2006-built 174,200 dwt Capesize drybulk carrier,
to be renamed M/V Cohiba, for a purchase price of $61.25 million and a 2005-
built 180,263 dwt Capesize drybulk carrier, to be renamed M/V Montecristo,
for a purchase price of$49.5 million. We expect to take delivery of the M/V
Cohiba in December 2009 following which it will commence a time charter
employment for a minimum period of five years at a daily gross rate of
$26,250. We expect to take delivery of the M/V Montecristo in the second
quarter of 2010 following which it will commence on a time charter
employment for a minimum period of four years at a gross daily rate of
$23,500.
-- Upon completion of the above transactions, our fleet will consist of
14 vessels, comprised of 10 dry bulk carriers (4 Capesizes, 6 Panamaxes)
and 4 tankers (1 Suezmax, 3 Aframaxes) with a combined deadweight tonnage
of approximately 1.6 million tons and a weighted average age of
approximately 10.2 years.
Third Quarter 2009 Results
For the third quarter ended September 30, 2009, Voyage Revenues amounted to $29.5 million, Operating Loss amounted to $6.7 million which includes the effect of the loss from the sale of vessels and Net Loss amounted to $13.3 million or $(0.15) per share. EBITDA(1) for the third quarter of 2009 was $17.7 million as adjusted for the effect of the loss from the sale of vessels.
An average of 12.7 vessels were owned and operated during the third quarter of 2009, earning an average Time Charter Equivalent, or TCE rate, of $31,495 per day.
Financing
As of the date of this release we have raised approximately $62 million in net proceeds under the current Standby Equity Distribution Agreement with YA Global Master SPV ltd., an affiliate of Yorkville Advisors. The proceeds of this offering together with the existing loan facilities are expected to be sufficient to finance the vessel acquisitions announced to date. As of the date this release the Company has 142,600,001 shares outstanding.
Liquidity
As of September 30, 2009, the Company had total liquidity of approximately $65.5 million.
Fleet Data
The following table reflects the calculation of our TCE rates for the periods then ended:
Financial Statements
The following are OceanFreight Inc.'s Consolidated Statements of Income for the three-month periods ended September 30, 2008 and 2009:
The following are OceanFreight Inc.'s Consolidated Balance Sheets as at December 31, 2008 and September 30, 2009:
EBITDA Reconciliation
OceanFreight Inc. considers EBITDA to represent net income before interest, taxes, depreciation and amortization and other non-cash items. EBITDA does not represent and should not be considered as an alternative to net income or cash flow from operations, as determined by United States generally accepted accounting principles, or U.S. GAAP and our calculation of EBITDA may not be comparable to that reported by other companies. EBITDA is included herein because it is a basis upon which the Company assesses its liquidity position, it is used by our lenders as a measure of our compliance with certain loan covenants and because the Company believes that it presents useful information to investors regarding a company's ability to service and/or incur indebtedness.
The following table reconciles net cash provided by operating activities to EBITDA as adjusted for the effect of the loss from the sale of vessels:
Fleet List
The table below describes our fleet and current employment profile as of November 10, 2009:
Current Gross Latest
Year Employ- Rate per Earliest Redel-
Built DWT Type ment Day Redelivery ivery
DRYBULK
Robusto 2006 173,949 Capesize TC $ 26,000 Sep-14 Jan-15
Partagas 2004 173,880 Capesize TC $ 27,500 Jul-12 Dec-12
Topeka 2000 74,710 Panamax TC $ 18,000 Jan-11 Mar-11
Helena 1999 73,744 Panamax TC $ 32,000 May-12 Jan-13
Pierre 1996 70,316 Panamax TC $ 23,000 Jun-10 Oct-10
Augusta 1996 69,053 Panamax TC $ 16,000 Nov-11 Mar-12
Austin 1995 75,229 Panamax TC $ 26,000 Apr-10 Aug-10
Trenton 1995 75,229 Panamax TC $ 26,000 Apr-10 Aug-10
TANKERS
Olinda 1996 149,085 Suezmax Pool - Blue Fin Tankers
Tigani 1991 95,951 Aframax TC $ 29,800 Sep-09 Nov-09
Tamara 1990 95,793 Aframax TC $ 27,000 Nov-10 Mar-11
Pink Sands 1993 93,723 Aframax TC $ 27,450 Oct-10 Jan-11
DRYBULK CARRIERS TO BE ACQUIRED
5 years from
Cohiba 2006 174,200 Capesize TC $ 26,250 delivery
4 years from
Montecristo 2005 180,263 Capesize TC $ 23,500 delivery
Conference Call and Webcast: Wednesday, November 11, 2009 at 08:30 A.M. EST
OceanFreight management team will host a conference call tomorrow, on November 11, 2009, at 08:30 A.M. Eastern Standard Time (EST) to discuss the Company's financial results for the Quarter ended September 30, 2009.
Conference Call details:
Participants should Dial-Into the call 10 minutes before the scheduled time using the following numbers: 1 866 819 7111 (U.S. Toll Free Dial -In), 0800 953 0329 (U.K. Toll Free Dial -In) or +44 (0) 1452 542 301 (Standard International Dial -In). Please quote "OceanFreight."
A telephonic replay of the conference call will be available until November 18, 2009 by dialing 1 866 247 4222 (U.S. Toll Free Dial-In), 0800 953 1533 (U.K. Toll Free Dial-In) or +44 (0) 1452 550 000 (Standard International Dial-In). Access Code: 7445162#.
Slides and audio webcast:
There will also be a simultaneous live webcast over the Internet, through the OceanFreight Inc. website (
Ocean Freight Inc.). Participants to the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.
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