COPENHAGEN: The comparison figures for period ended 31 March 2016 are stated in parenthesis.
In Q1 2017, the average daily Time Charter Equivalent (“TCE”) rate earned by the vessels in the two pools was marginally lower than the forecasted daily rate, whilst the LR1 vessel (Nordic Anne) tracked the forecasted daily rate.
Expenses relating to the operation of vessels in Q1 2017 inched up to USD 4.0 million (USD 3.8 million) mainly due to increased expenditure on spares and repairs of vessels.
EBITDA fell to USD 2.3 million (USD 4.2 million) due to the reduction in TCE revenue and higher vessel operating cost in Q1 2017.
The Group did not make any impairment nor reversal of impairment during the quarter.
After accounting for depreciation, interest expenses and other finance expenses, the loss after tax in Q1 2017 was USD 0.2 million (profit after tax of USD 1.5 million).
Under the loan agreement, cash in excess of USD 6.0 million will be used to pay down the loan facility. As the cash balance did not exceed USD 6.0 million, there was no cash sweep for this quarter (cash sweep of USD 2.7 million), in addition to the regular loan amortisation.
Between 31 March 2016 and 31 March 2017, equity decreased from USD 45.6 million to USD 39.1 million as a result of the cumulative loss during the period. Consequently, the equity ratio decreased from 34.3% to 33.0% between 31 March 2016 and 31 March 2017.
During the financial period, cash flow generated from operations was USD 1.3 million (USD 3.8 million) mainly from earnings by the two pools and time-charter income received for Nordic Anne, offset by payment of periodic interest expenses on the term loan. During the financial period, the Group did not invest in dry-docking (USD 0.2 million). The Group made a partial repayment of USD 1.7 million (USD 4.0 million, including a USD 2.7 million cash sweep) on the term loan facility.
As at 31 March 2017, cash and cash equivalents was USD 4.6 million (USD 6.3 million).
