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Nordic Shipholding Announces Interim Report for H1 2019

Logistic News - Published on Fri, 23 Aug 2019

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Nordic Shipholding started 2019 on a positive note as the average daily Time Charter Equivalent rate in Q1 2019 for the six vessels was approximately 23% higher than the average TCE rate in Q4 2018. However, the TCE rate started to decline from May 2019. The average TCE earned by the six vessels in H1 2019 was 19% higher than the average TCE earned in H1 2018. For the 6 months ended 30 June 2019, the Group incurred a loss after tax of USD 1.3 million.

TCE earnings rose 19.0% to USD 12.2 million (USD 10.2 million) in H1 2019. Expenses relating to the operation of vessels in H1 2019 decreased marginally to USD 7.1 million (USD 7.2 million).

EBITDA increased significantly to USD 4.3 million (USD 1.9 million) as a result of improved TCE earnings in H1 2019. Other external costs were reduced by USD 0.4 million to USD 0.6 million (USD 1.0 million) due mainly to the reduction in management fees charged by the corporate manager of the Group and other corporate expenses.

The Group recognised an impairment loss on asset-held-for-sale of USD 0.3 million in H1 2019 related to the sale of Nordic Ruth in July 2019. The Group did not make any impairment nor reversal of impairment on the remaining vessels in H1 2019.

As part of the loan restructuring concluded with the lending banks in Q4 2018, the financial covenants under the original loans such as (i) minimum value (fair market value of vessels as a percentage of outstanding loan) and (ii) minimum equity ratio are waived whilst the minimum liquidity level is reduced. The relief from these financial covenants are provided till 30 September 2020. In addition, the quarterly loan instalments are deferred from December 2018 to September 2020.

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Posted By : Mohan Sharma on Fri, 23 Aug 2019
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