Pioneer Marine Inc. Announces First Quarter 2015 Results
(firmenpresse) - MAJURO, MARSHALL ISLANDS -- (Marketwired) -- 05/27/15 -- Pioneer Marine Inc. and its subsidiaries (OSLO-OTC: PNRM) ("Pioneer Marine," or the "Company"), a leading shipowner and global drybulk handysize transportation service provider, announced its financial and operating results for the first quarter ended March 31, 2015.
Net loss of $4.4 million, or $0.19 basic and diluted loss per share for the first quarter of 2015 as compared to a net loss of $1.7 million, or $0.09 basic and diluted loss per share for the first quarter of 2014.
Net Revenue amounted to $10.3 million for the first quarter of 2015 as compared to $6.1 million for the first quarter of 2014.
During first quarter of 2015 the Company made progress payments to the shipyards of $8.6 million relating to our vessels under construction.
Pankaj Khanna, Chief Executive Officer, commented, "The first quarter proved to be the worst freight market experienced in over 30 years with earnings for drybulk carriers dropping to levels last seen in the quarter post Lehman or previously in the 1980s. A marked slowdown in trade during the first quarter combined with the overcapacity built over the last 4 years were responsible for this decline. Coal imports into China are the main cause of demand weakness with a 36% year on year decline in the January-April period. Significantly increased hydro-electric production and the government''s desire to curb pollution are behind this decline but this seems over exaggerated in the first half of the year. Minor bulks on the other hand continue to grow and are projected to grow by 3% in 2015.
"There has been a marked supply reaction in response to the freight weakness with 16.6 million deadweight sold for scrap in January to May versus the same total in all of 2014. 82 Handys of 2.6 Mdwt with an average age of 28 years were scrapped so far this year and there are still just under 600 Handys that are 20 years or older. Interestingly this old fleet also matches the Handysize orderbook that is to be delivered over the next three years. This relief valve provides the opportunity for the supply-demand balance in the Handy sector to be rectified. The Handy fleet has experienced zero growth so far this year.
"With the signing of the $150 million loan for the newbuildings, we have the debt financing required for the entire 12 ship program. We highly appreciate the support offered by our banks in a difficult market. The sharp decline in asset values for second-hand ships is offering an interesting long-term investment opportunity. We remain constructive on the geared vessel sector and continue to work on opportunities to leverage the platform that we have built."
Net Revenue for the first quarter of 2015 amounted to $10.3 million as compared to $6.1 million in the first quarter of 2014. Net revenue increased by $4.2 million mainly due to the increased number of operating vessels and operating days of the fleet which increased to 1,145 days in the three month ended March 31, 2015 compared to 573.5 days for the three month ended March 31, 2014, partly offset by the lower average daily hires earned in the first quarter of 2015 compared to the same period in 2014.
Time Charter Equivalent ("TCE") revenue (Net Revenue less Voyage Expenses) amounted to $6.3 million in the first quarter of 2015 compared to $4.8 million for the first quarter of 2014. TCE per day for the first quarter of 2015 amounted to $5,489 as compared to $8,403 per day for the three month ended March 31, 2014.
Vessel Operating Expenses ("OPEX") amounted to $5.6 million for the first quarter of 2015 as compared to $3.9 million in the first quarter of 2014. The increase is attributable to the increased number of average operating vessels that amounted to 13 vessels in the first quarter of 2015 as compared to 7 vessels in the first quarter of 2014. First quarter 2015 ship days increased to 1,170 as compared to 627.3 days for the first quarter of 2014.
Depreciation expense for the first quarter of 2015 increased to $2.7 million from $1.5 million in the first quarter of 2014 due to the increased number of operating vessels as discussed above.
General and administration expenses for the first quarter of 2015 increased to $1.3 million as compared to $0.6 million in the three month period ended March 31, 2014. The increase is mainly attributable to an increase in personnel costs due to an increase in head count, professional fees, directors'' fees and various other expenses attributable to the increased operations and planned growth of the Company.
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About Pioneer Marine Inc.
Pioneer Marine Inc. is a leading shipowner and global drybulk handysize transportation service provider. Pioneer Marine currently owns twelve Handysize and one Handymax drybulk carriers with an additional 12 Handysize newbuildings on order for delivery through 2016. The Handysize Green Dolphins newbuildings are ''Eco'' vessels designed by SDARI.
Forward-Looking Statements
Matters discussed in this press release may constitute forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides safe harbor protections for forward-looking statements in order to encourage companies to provide prospective information about their business. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts. The Company desires to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and is including this cautionary statement in connection with this safe harbor legislation. The words "believe," "anticipate," "intends," "estimate," "forecast," "project," "plan," "potential," "may," "should," "expect," "pending" and similar expressions identify forward-looking statements.
The forward-looking statements in this press release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, our management''s examination of historical operating trends, data contained in our records and other data available from third parties. Although we believe that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, we cannot assure you that we will achieve or accomplish these expectations, beliefs or projections.
In addition to these important factors, other important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include the failure of counterparties to fully perform their contracts with us, the strength of world economies and currencies, general market conditions, including fluctuations in charter rates and vessel values, changes in demand for dry bulk vessel capacity, changes in our operating expenses, including bunker prices, drydocking and insurance costs, the market for our vessels, availability of financing and refinancing, charter counterparty performance, ability to obtain financing and comply with covenants in such financing arrangements, changes in governmental rules and regulations or actions taken by regulatory authorities, potential liability from pending or future litigation, general domestic and international political conditions, potential disruption of shipping routes due to accidents or political events, vessels breakdowns and instances of off-hires and other factors.
Pioneer Marine Inc.
Pankaj Khanna
President and CEO
+65 6513 8761
Capital Link, Inc.
Paul Lampoutis
+212 661 7566
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Datum: 27.05.2015 - 14:17 Uhr
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