ADS Crude Carriers Plc (“ADS Crude Carriers” or the “Company”) announces the release of its third quarter 2020 report.
ADS Crude Carriers Q3 2020 Report (PDF)
HEADLINES Q3 2020:
- Net revenue¹ of USD 8.3 million; average TCE¹ of USD 37,344 per day for the quarter
- Net profit for the quarter USD 0.5 million
- ADS Stratus sold on 23 September for USD 25.5 million; debt reduced by USD 9.9 million
- Remaining two vessels sold post-quarter end for USD 25.5 million each: ADS Serenade sale completed 26 October, ADS Page sale completed 12 November
- Dividend declared of USD 4 million, or USD 0.17 per share
- Proposal to pay shareholders USD 51 million, or USD 2.18 per share, by way of reduction of share premium
KEY FINANCIALS
| Quarter | Nine months | Year | |||||
|---|---|---|---|---|---|---|---|
| (In thousands of USD) | Q3 2020 | Q3 2019 | Q3 2020 | Q3 2019 | 2019 | ||
| Charter revenue | 10 514 | 6 984 | 57 137 | 29 845 | 42 226 | ||
| Net revenue¹ | 8 340 | 2 134 | 43 532 | 13 406 | 20 047 | ||
| Vessel operating days | 223 | 127 | 743 | 670 | 885 | ||
| TCE¹ per day (in USD) | 37 344 | 16 801 | 58 565 | 20 010 | 22 653 | ||
| Operating profit | 1 529 | (2 102) | 22 579 | 1 387 | 1 674 | ||
| Net profit | 477 | (2 914) | 19 879 | (478) | (948) | ||
| EPS (in USD per share) | 0.02 | (0.12) | 0.85 | (0.02) | (0.04) | ||
| Dividend (in USD per share) | 0.17 | – | 0.65 | 0.06 | 0.15 | ||
| Cash flow from ops excl WC² | 4 236 | (864) | 33 121 | 5 137 | 8 713 | ||
| Cash flow from operations | 8 762 | 3 847 | 43 457 | 7 030 | 2 380 | ||
| Net cash flow | 14 666 | (3 964) | 26 492 | (771) | (8 381) | ||
| Cash and cash equivalents | 31 801 | 12 920 | 31 801 | 12 920 | 5 309 | ||
| Equity ratio | 73% | 55% | 73% | 55% | 52 % | ||
| Net interest-bearing debt¹ | (13 469) | 23 095 | (13 469) | 23 095 | 30 693 | ||
¹ Net revenue, TCE per day and NIBD are non-IFRS measures.
² Cash flow from operations before working capital movements.
Chairman of the Board of Directors, Bjørn Tore Larsen, commented:
“ADS Crude Carriers Plc recorded another profitable quarter and again we delivered on our commitment to return a high proportion of earnings, declaring a dividend of total USD 4 million or USD 0.17 per share to be paid in early December. Following the end of the third quarter, the Company completed the sales of ADS Serenade and ADS Page, following the sale of ADS Stratus in Q3 2020. Each of the vessels were sold at a premium to the price that the ships were acquired for in Q3 2018 and since the announcement of the first vessel sale our share price has increased over 60%.
In order to return the net cash sales proceeds as well as most of the accumulated cash currently held, we will call for an extraordinary general meeting (EGM) to request shareholders’ approval to return cash to shareholders by way of a repayment of share premium of USD 51 million. The timing of the payment of the share premium return is expected to be during Q1 2021, subject to shareholder and regulatory approval. As a result of the announced dividend and proposed share premium repayment, a total of USD 55 million will be returned to shareholders.
The Company intends to continue to evaluate further investment opportunities in the maritime sector, anchored by the principles that have helped it to be successful in creating shareholder value to date, including:
- being highly disciplined with regards to vessel entry price
- implementing an aggressive capital return policy
- ensuring low-cost operations with a balanced capital structure
As part of this broader strategic remit going forward, which may involve asset classes other than crude tankers, we propose to change the name of the Company to ADS Maritime Holding Plc, subject to a shareholder resolution.”