Gener8 Maritime, Inc. Announces Second Quarter 2017 Financial Results

NEW YORK, Aug. 1, 2017

Highlights

• Including a non-cash loss of $67.9 million due to ships held for sale, recorded net loss of $82.5 million, or $0.99 basic and diluted loss per share, for the three months ended June 30, 2017, compared to net income of $38.0 million, or $0.46 basic and diluted earnings per share for the same period in the prior year. 
• Recorded adjusted net loss of $8.9 million, or $0.11 basic and diluted adjusted loss per share, for the three months ended June 30, 2017, compared to adjusted net income of $42.0 million or $0.51 basic and diluted adjusted earnings per share for the same period in the prior year.
• Increased vessel operating days by 18.0% to 3,352 in the three months ended June 30, 2017 compared to 2,841 in the same period in the prior year.  Increased full fleet "ECO" operating days to 54.2% in the three months ended June 30, 2017, compared to 30.8% in the same period in the prior year. 
• Entered into a series of transactions that are expected to increase cash on the balance sheet by more than $87 million and reduce total indebtedness by approximately $144 million.  These include:
• Modified the Company's interest rate swap agreements, resulting in aggregate net cash proceeds of $18.2 million in April 2017.
• Sold the following vessels for net cash proceeds of $65.4 million after debt repayment of $119.7 million:
• A 2002-built Aframax (Gener8 Daphne), two 2016-built VLCCs (Gener8 Noble and Gener8 Theseus), and a 2002-built Suezmax (Gener8 Orion).
• Entered into agreements in July 2017 to sell the following vessels for expected net cash proceeds of $3.4 million after debt repayment of $24.1 million:
• Two 1999-built Suezmax tankers, Gener8 Horn and Gener8 Phoenix, for demolition prior to the vessels' special surveys, and the 2002-built Aframax Gener8 Elektra

"We continue to take important steps to strengthen our platform and balance sheet" said Peter Georgiopoulos, Chairman and Chief Executive Officer of Gener8 Maritime. "In this seasonally weaker rate environment, we remain focused on maximizing our financial flexibility in order to manage our business for the near- and long-term.  We continue to dispose of older vessels, streamlining our fleet and focusing on high quality tonnage with the best return profile.  This strengthens our competitive position in the market. We believe the strategy we are pursuing is prudent and reflects our approach to managing our balance sheet and market exposure."

Leo Vrondissis, Chief Financial Officer, added, "Our balance sheet is expected to be further strengthened during the second quarter, by our agreeing to transactions that are expected to provide over $87.0 million of additional liquidity. The sales of our older vessels have also been timely, as several have come before the vessels' 2017 special surveys, which according to budgeted amounts will preserve an additional $18 million of liquidity."

Fleet Performance

The average TCE rates earned by Gener8 Maritime's vessels are detailed below:

Gener8 Maritime Average Daily TCE Rates(1) ARIVA.DE Börsen-Geflüster Kurse Gener8 Maritime -   0,00%
		Three Months Ended
		Jun-17		Jun-16
	VLCC
	Average Spot TCE Rate	$26,961		$44,806
	Average Time Charter TC Rate	-		$48,399
	SUEZMAX
	Average Spot TCE Rate	$15,361		$31,500
	Average Time Charter TC Rate	-		-
	AFRAMAX
	Average Spot TCE Rate	$9,858		$20,477
	Average Time Charter TC Rate	-		-
	PANAMAX
	Average Spot TCE Rate	$4,647		$15,071
	Average Time Charter TC Rate	-		-
	FULL FLEET
	Average Spot TCE Rate	$21,713		$35,635
	Average Time Charter TC Rate	-		$48,399

Second Quarter 2017 Results Summary 

The Company recorded net loss for the three months ended June 30, 2017 of $82.5 million, or $0.99 basic and diluted loss per share, compared to net income of $38.0 million, or $0.46 basic and diluted earnings per share, for the prior year period.

Adjusted net loss was $8.9 million, or $0.11 basic and diluted adjusted loss per share, for the three months ended June 30, 2017, compared to adjusted net income of $42.0 million, or $0.51 basic and diluted adjusted earnings per share, for the prior year period.

Adjusted EBITDA for the three months ended June 30, 2017 was $38.2 million, compared to $71.0 million for the prior year period. Please refer to the tables at the end of this press release for a reconciliation of adjusted net income and adjusted EBITDA to net income.

The average daily spot TCE rate obtained by the Company's VLCC fleet, including its vessels that were deployed in the Navig8 pools, was $26,961 for the three months ended June 30, 2017. During the three months ended June 30, 2017, the Company's "ECO" VLCC fleet earned an average daily TCE rate of $27,920, and the Company's non-"ECO" VLCC fleet earned an average daily TCE rate of $20,670.  The average daily TCE rate obtained by the Company on a full-fleet basis was $21,713 during the three months ended June 30, 2017, compared to $35,825 for the prior year period. 

Net voyage revenues decreased by $29.0 million, or 28.5%, to $72.8 million for the three months ended June 30, 2017 compared to $101.8 million dollars for the prior year period. The decrease in net voyage revenues was primarily attributable to the decrease in the Company's average daily fleet TCE rate by $14,112, or 39.4%, to $21,713 for the three months ended June 30, 2017 compared to $35,825 for the prior year period.  The decrease in the Company's average daily fleet TCE rate resulted in a decrease in net voyage revenue of approximately $40.1 million during the three months ended June 30, 2017 compared to the prior year period. The decrease in net voyage revenues was partially offset by an increase in the Company's vessel operating days of 512 days, or 18.0%, to 3,352 days, for the three months ended June 30, 2017 compared to 2,841 days for the prior year period.  The increase in the Company's vessel operating days resulted in an increase in net voyage revenue of approximately $11.1 million for the three months ended June 30, 2017 compared to the prior year period. The increase in the Company's vessel operating days was primarily the result of the deployment of 9 additional VLCC newbuilding vessels since the end of the prior year period.  

Direct vessel operating expenses, which include crew costs, provisions, deck and engine stores, lubricating oil, insurance, and maintenance and repairs for owned vessels increased by $2.4 million, or 9.2%, to $27.9 million for the three months ended June 30, 2017 compared to $25.5 million for the prior year period. The increase was primarily due to increases in the Company's average fleet size to 39.2 vessels for the three months ended June 30, 2017 from 33.4 vessels for the prior year period and associated increases in crew costs and other costs.  The increase in direct vessel operating expenses was partially offset by a decrease in daily direct vessel operating expenses per vessel of $601, or 7.1%, to $7,807 per day for the three months ended June 30, 2017 compared to $8,408 per day for the prior year period, primarily as a result of lower operating costs, including crew cost, repair and maintenance and other costs, associated with the Company's newly delivered vessels.

General and administrative expenses increased by $2.6 million, or 37.0%, to $9.6 million for the three months ended June 30, 2017, compared to $7.0 million in the prior year period. During the three months ended June 30, 2017, we recorded as general and administrative expenses a write-off of assets of $1.5 million and litigation loss of $0.4 million, both of which are related to a May 2017 arbitration tribunal decision regarding a 2013 charter dispute submitted by a vessel owning subsidiary of the Company.

Depreciation and amortization increased by $6.7 million, or 33.8%, to $26.7 million for the three months ended June 30, 2017 compared to $20.0 million for the prior year period. The increase in depreciation and amortization was primarily due to an increase in vessel depreciation of $6.7 million, or 37.3%, to $25.0 million for the three months ended June 30, 2017 compared to $18.3 million in the prior year period. The increase in vessel depreciation was primarily due to an increase in the Company's fleet size during the three months ended June 30, 2017 compared to the prior year period.

Loss on disposal of vessels, net increased by $68.6 million, to $67.9 million for the three months ended June 30, 2017 compared to a gain of $0.7 million for the prior year period. The increase in loss on disposal of vessels, net was primarily due to non-cash losses associated with the disposal of vessels and certain vessel equipment of $66.8 million related to the potential sale of the Gener8 Noble and Gener8 Theseus, which were moved to assets held for sale, and the sale of the Gener8 Orion, which was completed in June 2017.

Net interest expense increased by $10.0 million to $20.4 million for the three months ended June 30, 2017 compared to $10.4 million for the prior year period.  The increase was primarily attributable to the decrease in capitalized interest of $7.0 million, or 89.1%, to $0.8 million for the three months ended June 30, 2017 compared to $7.8 million in the prior year period related to the capitalization of interest expense associated with vessels under construction as a result of the funding of the acquisition of the Company's VLCC newbuildings. Also contributing to the increase during the three months ended June 30, 2017, was an increase in interest expense associated with the Company's senior secured credit facilities of $3.5 million, or 37.4%, to $12.8 million compared to $9.3 in the prior year period due to an increase in the Company's outstanding borrowings under its senior secured credit facilities and senior notes, which totaled $1.6 billion and $1.3 billion as of June 30, 2017 and 2016, respectively.  The increase in net interest expense was partially offset by a reduction in net interest expense of $1.1 million related to the modification of the interest rate swaps agreements that were entered into on April 10, 2017, which included changes to the notional amounts, maturity dates, and an increase in the fixed rates payable under the interest rate swaps.

During the three months ended June 30, 2017, the Company's interest rate swap agreements were ineffective, and the Company recorded $2.8 million of expenses related to the impact of the interest rate swap agreements.

As of June 30, 2017, the Company's cash balance was $160.1 million, compared to $94.7 million as of December 31, 2016. As of June 30, 2017, the Company's total debt was $1.6 billion and net debt was $1.4 billion.

As of June 30, 2017, there were 82,988,946 shares of the Company's common stock outstanding. 

Gener8 Maritime Fleet Profile (as of July 31, 2017)

Vessels on the Water
	Type	Vessel Name	DWT	Year Built	Employment
1	VLCC	Gener8 Ethos	298,991	2017	VL8 Pool
2	VLCC	Gener8 Hector	297,363	2017	VL8 Pool
3	VLCC	Gener8 Theseus(1)	299,392	2016	VL8 Pool
4	VLCC	Gener8 Noble(1)	298,991	2016	VL8 Pool
5	VLCC	Gener8 Miltiades	301,038	2016 Werbung Mehr Nachrichten zur Gener8 Maritime Aktie kostenlos abonnieren E-Mail-Adresse Bitte überprüfe deine die E-Mail-Adresse. Benachrichtigungen von ARIVA.DE (Mit der Bestellung akzeptierst du die Datenschutzhinweise) -1 Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink. Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte. Andere Nutzer interessierten sich auch für folgende News 10:33 - PR Newswire Norges Bank - Form 8.3 - BHP Group Limited 08:56 - PR Newswire Samson Rock Capital LLP - Form 8.3 - Accrol Group Holdings plc 08:52 - PR Newswire Samson Rock Capital LLP - Form 8.3 - Network International Holdings Plc SolarBank    Wie die Revolution der sauberen Energie eine solide Investitionsmöglichkeit bieten könnte weiterlesen» Anzeige wo-site-teaser-box-16755_site-teaser-box_2024-04-25_09%253A00%253A00_2024-04-26_09%253A00%253A59