Diamond S Shipping Inc. Reports Fourth Quarter 2020 Results

GREENWICH, Conn.--()--Diamond S Shipping Inc. (NYSE: DSSI) (“Diamond S”, or the “Company”), one of the largest publicly listed owners and operators of crude oil and product tankers, today announced results for the fourth quarter of 2020.

Highlights for the Fourth Quarter and Recent Events

  • Reported net loss attributable to Diamond S of $57.8 million, or net loss of $1.45 basic and diluted earnings per share, and Adjusted EBITDA (see Non-GAAP Measures section below) of $8.0 million. The reported net loss includes a loss on vessel sales, related to the sale of the Aias and Amoureux, and a cancelled scrubber installation, which, in aggregate, was $29.6 million. Excluding the loss on vessel sales and the cost of the cancelled scrubber project, the net loss was $28.2 million, or $0.71 per share.

  • Agreed to sell two Suezmax vessels, the Aias and the Amoureux, which were delivered to buyers in January and February 2021 respectively. The sale of the vessels generated approximately $20 million in net proceeds before settlement of working capital.

  • Net debt at December 31, 2020 was $594.4 million, implying a net debt to asset value leverage ratio of approximately 44% based on broker valuations as of December 2020. At quarter end, total free liquidity available to the Company above bank minimum cash requirements was $108.1 million.

Craig H. Stevenson Jr., President and CEO of Diamond S, commented: “Although near-term market conditions will likely remain challenging, the positive long-term market dynamic remains unchanged. In fact, the permanent closures of certain refineries will result in increased tanker demand for product tankers once conditions normalize. Overall tanker demand is expected to gradually increase over the course of 2021 and eventually return to pre-pandemic levels next year as product demand recovers and inventory levels normalize. Diamond S will be well-positioned to create value for our shareholders as the recovery unfolds. Our recent sale of two Suezmax vessels highlights the disconnect between the tangible market value of our fleet and our current market capitalization. These sales also add to our strong liquidity position, reduce our interest expense and are consistent with our historical approach to managing our balance sheet conservatively.”

Fourth Quarter 2020 Results

Reported net loss attributable to Diamond S for the fourth quarter of 2020 was $57.8 million, or net loss of $1.45 basic and diluted earnings per share. Excluding the loss of vessel sales and cancelled scrubber project cost of $29.6 million, the net loss was $28.2 million or $0.71 per share compared to a net income of $26.1 million, or $0.65 per basic and diluted share, for the fourth quarter of 2019. The decrease in net income for the fourth quarter of 2020 compared to the fourth quarter of 2019 is primarily related to weaker tanker market conditions driven by the global pandemic.

The Company groups its business primarily by commodity transported and segments its fleet into a 16-vessel crude oil transportation fleet (the “Crude Fleet”) and a 50-vessel refined petroleum product transportation fleet (the “Product Fleet”). The Crude Fleet consists of 15 Suezmax vessels and one Aframax vessel. In December 2020, the Company agreed to sell two Suezmax vessels that were delivered in Q1 2021. The Product Fleet consists of 44 medium range (“MR2”) vessels and 6 Handysize (“MR1”) vessels.

Net revenues for the Company, which represents voyage revenues less voyage expenses, were $58.4 million for the fourth quarter of 2020 compared to $123.1 million for the fourth quarter of 2019. Net revenues from the Crude Fleet were $15.3 million in the fourth quarter of 2020 compared to $55.6 million for the fourth quarter of 2019. The decrease in net revenues for the Crude Fleet were primarily due to the continued impact of the pandemic on global oil demand. Net revenues from the Product Fleet were $43.1 million in the fourth quarter of 2020 compared to $67.5 million for the fourth quarter of 2019. The decrease in net revenues in the Product Fleet were driven by the same factors as the Crude Fleet.

Vessel expenses were $43.2 million for the fourth quarter of 2020 compared to $44.7 million for the fourth quarter of 2019. Vessel expenses, which include crew costs, insurance, repairs and maintenance, lubricants and spare parts, technical management fees and other miscellaneous expenses, decreased by $1.5 million primarily due to timing of crew reliefs and logistics for delivery of services and materials.

Depreciation and amortization expense was $29.2 million in the fourth quarter of 2020 compared to $28.7 million for the fourth quarter of 2019.

General and administrative expenses were $6.7 million in the fourth quarter of 2020 compared to $8.3 million for the fourth quarter of 2019. The decrease of $1.6 million is attributable to the strategic change in commercial managers in the Product Fleet, which transitioned from an in-house MR desk of salaried employees to external managers in the Norient Product Pool, a decline in travel expenses due to the pandemic and a decline in legal and accounting professional fees related to regulatory filings.

Interest expense was $6.6 million in the fourth quarter of 2020 compared to $11.0 million for the fourth quarter of 2019. Interest expense decreased in the fourth quarter of 2020 due to a lower average debt balance as a result of debt repayments and a decrease in the effective interest rate. Total gross debt outstanding as of December 31, 2020 was $714.9 million, or 20% lower compared to December 31, 2019.

Other income, which consists primarily of interest income, was less than $0.1 million in the fourth quarter of 2020, compared to $0.3 million for the fourth quarter of 2019.

Liquidity

As of December 31, 2020, the Company had $104.2 million in cash and restricted cash and $60.0 million available under its revolving credit facility. Available liquidity as of December 31, 2020 was $108.1 million, net of $56.1 million in restricted cash and minimum cash required by debt covenants. Following the sales of the Aias and Amoureux, revolving credit capacity has decreased by $7 million under the provisions of our debt documents.

Outlook

We expect the tanker market to remain under pressure for the remainder of the first half of 2021. Demand for crude oil and refined products, while recovering from trough levels in Q2 2020, is expected to average about 96 million barrels per day, or 4 million barrels per day lower than pre-pandemic levels in 2021, according to OPEC. In the short term, however, tanker supply appears to be higher than current demand levels as improvements in consumption are being offset by draws in inventory.

We believe in the longer-term fundamentals of the tanker industry. Tanker supply remains balanced based on pre-pandemic demand levels, and the number of vessels on order nearly matches the number of vessels that might be expected to be scrapped, based on the average useful life of a vessel. We expect conditions to normalize and then gradually improve over the next 12 to 18 months.

As of March 5, 2021, approximately 81% of Crude Fleet revenue days operating in the spot market in the first quarter have been fixed at an average rate of approximately $9,200 per day. In the Product Fleet, 83% of revenue days operating in the spot market have been fixed at an average rate of approximately $8,800 per day in the first quarter of 2021. The Product Fleet includes a weighted average blend of MR2 vessels, fixed on 85% of revenue days at an average rate of $9,100 per day, and MR1 vessels, fixed on 72% of first quarter revenue days at an average rate of $6,700 per day.

We continue to monitor the effects of the COVID-19 virus on our business. The shipping industry is not only affected by the reduced economic activity caused by the global pandemic, but our direct operations face travel restrictions and health protocols that differ across every port that we are called to perform our services or to maintain the condition of our vessels. Our crews stand at the forefront of these challenges with the added health procedures to get on board and extending their contracted time aboard the vessel to ensure safe relief from the next crew. While the Company has faced increased costs in order to support the safe transition of our crews and the logistics for delivery of services and materials to vessels, we remain dedicated to ensure our crews are healthy and safe while operating our vessels and transitioning to and from our vessels.

Conference Call

The Company will hold a conference call on March 12, 2021 at 8:00 a.m. Eastern Time to discuss its results for the fourth quarter of 2020.

To access the call, participants should dial +1 866 211-4137 for domestic callers and +1 647 689-6723 for international callers. Participants are encouraged to dial in ten minutes prior to the call. Please enter passcode 7955988.

A live webcast of the conference call will be available from the Company’s website at www.diamondsshipping.com.

An audio replay of the conference call will be available starting at 11 a.m. ET on Friday March 12, 2021 through Friday, March 19, 2021 by dialing in +1 800 585-8367 or +1 416 621-4642 and entering the passcode 7955988.

About Diamond S Shipping Inc.

Diamond S Shipping Inc. (NYSE: DSSI) owns and operates 64 vessels on the water, including 13 Suezmax vessels, one Aframax and 50 medium-range (MR) product tankers. Diamond S is one of the largest energy shipping companies providing seaborne transportation of crude oil, refined petroleum and other petroleum products. The Company is headquartered in Greenwich, CT. More information about Diamond S can be found at www.diamondsshipping.com.

Disclosure Regarding Forward-Looking Statements

Matters discussed in this press release may constitute forward-looking statements including, but not limited to, 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 forward-looking statements herein are based upon various assumptions, many of which are based, in turn, upon further assumptions, including, without limitation, management’s examination of historical operating trends, data contained in the Company’s records and other data available from third parties. Although management believes 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 the Company’s control, there can be no assurance that the Company will achieve or accomplish these expectations, beliefs or projections. Such statements reflect the Company’s current views with respect to future events and are subject to certain risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described herein as anticipated, believed, estimated, expected or intended. The Company is making investors aware that such forward-looking statements, because they relate to future events, are by their very nature subject to many important factors that could cause actual results to differ materially from those contemplated. Some of the factors that could cause our actual results or conditions to differ materially include, but are not limited to, unforeseen liabilities; future capital expenditures, revenues, expenses, earnings, synergies, economic performance, indebtedness, financial condition, losses, future prospects, business and management strategies for the management, expansion and growth of the Company’s operations; risks relating to the integration of assets or operations of entities that it has or may in the future acquire and the possibility that the anticipated synergies and other benefits of such acquisitions may not be realized within expected timeframes or at all; the failure of counterparties to fully perform their contracts with the Company; the strength of world economies and currencies; the duration and impact of the COVID-19 (coronavirus) outbreak; general market conditions, including fluctuations in charter rates and vessel values; changes in demand for tanker vessel capacity; changes in the Company’s operating expenses, including bunker prices; drydocking and insurance costs; the market for the Company’s 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. Please see the Company's filings with the SEC for a more complete discussion of certain of these and other risks and uncertainties. The Company undertakes no obligation, and specifically declines any obligation, except as required by law, to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

 

DIAMOND S SHIPPING INC. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

as of December 31, 2020 and December 31, 2019

(In Thousands, except for share and per share data)

(Unaudited)

 

 

December 31,

2020

December 31,

2019

Assets

 

 

Current assets:

 

 

Cash and cash equivalents

$

98,059

 

$

83,609

 

Due from charterers – Net of provision for doubtful accounts of $1,577 and $1,415, respectively

 

39,141

 

 

80,691

 

Inventories

 

17,457

 

 

32,071

 

Vessels held for sale

 

45,351

 

 

 

Prepaid expenses and other current assets

 

7,737

 

 

13,179

 

Restricted cash

 

6,140

 

 

 

Total current assets

 

213,885

 

 

209,550

 

 

 

 

Noncurrent assets:

 

 

Vessels – Net of accumulated depreciation of $650,259 and $553,483, respectively

 

1,702,749

 

 

1,865,738

 

Other property – Net of accumulated depreciation of $886 and $584, respectively

359

642

Deferred drydocking costs – Net of accumulated amortization of $27,343 and $17,975, respectively

 

32,391

 

 

37,256

 

Advances to Norient pool

 

8,001

 

 

 

Restricted cash

 

 

 

5,610

 

Time charter contracts acquired – Net of accumulated amortization of $4,686 and $2,296, respectively

 

2,214

 

 

5,004

 

Other noncurrent assets

 

2,244

 

 

4,582

 

Total noncurrent assets

 

1,747,958

 

 

1,918,832

 

Total

$

1,961,843

 

$

2,128,382

 

 

 

 

Liabilities and Equity

 

 

Current liabilities:

 

 

Current portion of long-term debt

$

196,325

 

$

134,389

 

Accounts payable and accrued expenses

 

25,817

 

 

44,062

 

Deferred charter hire revenue

 

3,051

 

 

1,934

 

Derivative liabilities

 

580

 

 

 

Total current liabilities

 

225,773

 

 

180,385

 

 

 

 

Long-term debt – Net of deferred financing costs of $12,531 and $15,866, respectively

 

506,065

 

 

744,055

 

Derivative liabilities

 

569

 

 

 

Total liabilities

 

732,407

 

 

924,440

 

 

 

 

 

 

 

Equity:

 

 

Common stock, par value $0.001; 100,000,000 shares authorized; issued and outstanding 39,968,323 and 39,890,699 shares at December 31, 2020 and 2019, respectively

 

40

 

 

40

 

Treasury stock – at cost; 137,289 shares at December 31, 2020

 

(1,418

)

 

 

Additional paid-in capital

 

1,241,822

 

 

1,237,658

 

Accumulated other comprehensive loss

 

(1,149

)

 

 

Accumulated deficit

 

(45,250

)

 

(68,567

)

Total Diamond S Shipping Inc. equity

 

1,194,045

 

 

1,169,131

 

Noncontrolling interests

 

35,391

 

 

34,811

 

Total equity

 

1,229,436

 

 

1,203,942

 

Total

$

1,961,843

 

$

2,128,382

 

 

DIAMOND S SHIPPING INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Operations

for the Three and Twelve Months Ended December 31, 2020 and 2019

(In Thousands, except for share and per share data)

(Unaudited)

 

 

For the Three Months Ended
December 31,

For the Twelve Months Ended
December 31,

 

 

2020

 

 

 

2019

 

 

 

2020

 

 

 

2019

 

Revenue:

 

 

 

 

Spot revenue

$

46,214

 

$

162,762

 

$

465,383

 

$

511,573

 

Time charter revenue

 

16,101

 

 

23,545

 

 

79,397

 

 

68,211

 

Pool revenue

 

27,720

 

 

 

 

51,130

 

 

 

Total revenue

 

90,035

 

 

186,307

 

 

595,910

 

 

579,784

 

 

 

 

 

 

Operating expenses:

 

 

 

 

Voyage expenses

 

31,655

 

 

63,234

 

 

188,581

 

 

230,675

 

Vessel expenses

 

43,161

 

 

44,686

 

 

171,193

 

 

153,662

 

Depreciation and amortization expense

 

29,185

 

 

28,741

 

 

115,783

 

 

108,703

 

Loss on sale of vessels and cancelled projects

 

29,551

 

 

 

 

29,551

 

 

18,344

 

General and administrative expenses

 

6,711

 

 

7,683

 

 

30,005

 

 

26,794

 

Other corporate expenses

 

 

 

594

 

 

 

 

2,657

 

Total operating expenses

 

140,263

 

 

144,938

 

 

535,113

 

 

540,835

 

Operating income

 

(50,228

)

 

41,369

 

 

60,797

 

 

38,949

 

Other (expense) income:

 

 

 

 

Interest expense

 

(6,636

)

 

(10,959

)

 

(34,742

)

 

(46,772

)

Loss on extinguishment of debt

 

 

(3,978

)

 

 

 

(3,978

)

Other income

 

2

 

 

326

 

 

341

 

 

1,719

 

Total other expense – Net.

 

(6,634

)

 

(14,611

)

 

(34,401

)

 

(49,031

)

Net (loss) income

 

(56,862

)

 

26,758

 

 

26,396

 

 

(10,082

)

Less: Net income (loss) attributable to noncontrolling interest (1)

 

913

 

 

640

 

 

3,079

 

 

(776

)

Net (loss) income attributable to Diamond S Shipping Inc.

$

(57,775

)

$

26,118

 

$

23,317

 

$

(9,306

)

 

 

 

 

 

Net (loss) earnings per share – basic

$

(1.45

)

$

0.65

 

$

0.58

 

$

(0.25

)

Net (loss) earnings per share – diluted

$

(1.45

)

$

0.65

 

$

0.58

 

$

(0.25

)

 

 

 

 

 

Weighted average common shares outstanding – basic

 

39,945,070

 

 

39,890,699

 

 

39,896,339

 

 

36,857,615

 

Weighted average common shares outstanding – diluted

 

39,945,070

 

 

40,143,591

 

 

40,123,051

 

 

36,857,615

 

(1)

The Company is a 51% owner in NT Suez Holdco LLC (“NT Suez”), a joint venture that owns two Suezmax vessels. The Company also performs commercial, technical and administrative services for this joint venture.

 

DIAMOND S SHIPPING INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows

for the Twelve Months Ended December 31, 2020 and 2019

(In Thousands)

(Unaudited)

 

 

For the Twelve Months Ended
December 31,

 

 

2020

 

 

2019

 

Cash flows from Operating Activities:

 

 

Net income (loss)

$

26,396

 

$

(10,082

)

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

 

 

Depreciation and amortization expense

 

115,783

 

 

108,703

 

Loss on sale of vessels and cancelled projects.

 

29,551

 

 

18,344

 

Amortization of deferred financing costs

 

3,558

 

 

4,135

 

Amortization of time charter hire contracts acquired

 

2,790

 

 

2,389

 

Loss on extinguishment of debt

 

 

 

3,978

 

Amortization of the realized gain from recouponing swaps

 

 

 

(5,917

)

Stock-based compensation expense

 

4,931

 

 

3,521

 

Changes in assets and liabilities

 

35,564

 

 

(44,407

)

Payments for drydocking

 

(5,543

)

 

(17,314

)

Net cash provided by operating activities

 

213,030

 

 

63,350

 

 

 

 

Cash flows from Investing Activities:

 

 

Acquisition costs, net of cash acquired of $16,568

 

 

 

(292,683

)

Transaction costs

 

 

 

(19,084

)

Proceeds from sale of vessels

 

 

 

31,800

 

Payments for vessel additions and other property

 

(13,333

)

 

(14,563

)

Net cash used in investing activities

 

(13,333

)

 

(294,530

)

 

 

 

Cash flows from Financing Activities:

 

 

Borrowings on long-term debt

 

 

 

815,000

 

Principal payments on long-term debt

 

(134,389

)

 

(101,452

)

Borrowings on revolving credit facilities

 

 

 

61,000

 

Payments to retire credit facilities

 

 

 

(500,603

)

Repayments on revolving credit facilities

 

(45,000

)

 

(26,323

)

Shares repurchased

 

(1,418

)

 

 

Proceeds from partners’ contributions in subsidiaries

 

 

 

980

 

NT Suez Holdco LLC distribution

 

(2,499

)

 

 

Cash paid to net settle employee withholding taxes on equity awards

 

(767

)

 

 

Payments for deferred financing costs

 

(644

)

 

(16,361

)

Net cash (used in) provided by financing activities

 

(184,717

)

 

232,241

 

Net increase (decrease) in cash, cash equivalents and restricted cash

 

14,980

 

 

1,061

 

Cash, cash equivalents and restricted cash – Beginning of period

 

89,219

 

 

88,158

 

Cash, cash equivalents and restricted cash – End of period

$

104,199

 

$

89,219

 

 

 

 

Supplemental disclosures:

 

 

Cash paid for interest

$

31,984

 

$

45,426

 

Common stock issued to CPLP

$

 

$

236,848

 

Unpaid vessel additions in Accounts payable and accrued expenses at the end of the period

$

183

 

$

3,270

 

 

DIAMOND S SHIPPING INC. AND SUBSIDIARIES

Crude & Product Operating Data

(Unaudited)

 

For the Three Months Ended

December 31,

For the Twelve Months Ended

December 31,

2020

 

2019

 

2020

 

2019

 

Crude

Fleet

Product

Fleet(A)

Crude

Fleet

Product

Fleet(A)

Crude

Fleet

Product

Fleet(A)

Crude

Fleet

Product

Fleet(A)

 

Time Charter TCE per day(1)

$26,364

$13,850

$26,335

$14,153

$26,298

$14,279

$26,242

$14,347

 

Spot TCE per day(1),(2)

6,716

9,241

43,703

15,677

29,128

13,578

24,339

13,860

 

Total TCE per day(1),(2)

$10,374

$9,812

$40,443

$15,322

$28,580

$13,704

$24,517

$13,969

 

Vessel operating expenses per day(3)

$7,543

$6,993

$7,829

$7,092

$7,569

$6,815

$7,316

$6,632

 

Revenue days(4)

1,470

4,545

1,471

4,534

5,645

18,021

5,324

16,378

 

Operating days(4)

1,472

4,600

1,472

4,600

5,856

18,300

5,496

16,957

 

(A) Product Fleet Operating Data

For the Three Months Ended

December 31,

For the Twelve Months Ended

December 31,

2020

 

2019

 

2020

 

2019

 

MR

Fleet

Handy

Fleet

MR

Fleet

Handy

Fleet

MR

Fleet

Handy

Fleet

MR

Fleet

Handy

Fleet

 

Time Charter TCE per day(1)

$13,761

$14,325

$14,738

$12,491

$14,464

$13,291

$14,946

$12,317

 

Spot TCE per day(1),(2)

9,849

4,570

15,499

17,775

14,073

9,703

13,903

13,230

 

Total TCE per day(1),(2)

$10,313

$6,154

$15,350

$15,116

$14,140

$10,542

$14,103

$12,768

 

Vessel operating expenses per day(3)

$6,905

$7,636

$7,186

$7,538

$6,773

$7,125

$6,682

$7,282

 

Revenue days(4)

3,997

548

3,987

547

15,833

2,188

14,736

1,642

 

Operating days(4)

4,048

552

4,048

552

16,104

2,196

15,283

1,674

(1)

Time charter equivalent (“TCE”) revenue represents voyage revenues, which commence at the time a vessel departs its last discharge port and end at the time the discharge of cargo at the next discharge port is complete, less voyage expenses incurred over such time. TCE rates are a non-GAAP measure, generally used in the shipping industry, used to compare revenue generated from voyage charters to revenue generated from time charters. TCE rates assist the Company’s management in making decisions regarding the deployment and use of its vessels and in evaluating the financial performance of vessels under commercial management. See Non-GAAP Measures below.

(2)

Revenues are derived on a discharge-to-discharge basis less voyage expenses which primarily consist of fuel costs and port charges incurred over the same period. Voyage revenues, as presented in the income statement, are reported under a load-to-discharge basis under U.S. GAAP. A reconciliation is provided in the Non-GAAP Measures section of the press release.

(3)

The vessel operating expenses primarily consist of crew wages and associated costs, insurance premiums, lubricants and spare parts, technical management fees and repair and maintenance costs and excludes nonrecurring items.

(4)

Operating days include the calendar days in the period of owned vessels. Revenue days represent operating days less technical off-hire and drydocking.

Non-GAAP Measures

To supplement the Company’s financial information presented in accordance with accounting principles generally accepted in the U.S. (“GAAP”), management uses certain “non-GAAP financial measures” as such term is defined in Regulation G promulgated by the Securities and Exchange Commission (the “SEC”). Generally, a non-GAAP financial measure is a numerical measure of a company’s operating performance, financial position or cash flows that excludes or includes amounts that are included in, or excluded from, the most directly comparable measure calculated and presented in accordance with GAAP. Management believes the presentation of these measures provides investors with greater transparency and supplemental data relating to the Company’s financial condition and results of operations, and therefore a more complete understanding of factors affecting its business than GAAP measures alone.

TCE revenue, TCE per day, earnings before interest, taxes, depreciation and amortization (“EBITDA”), and EBITDA adjusted for the impact of certain items that we do not consider indicative of our ongoing operating performance (“Adjusted EBITDA”) are non-GAAP financial measures that are presented in this press release and that the Company believes provide investors with a means of evaluating and understanding how the Company’s management evaluates the Company’s operating performance. These non-GAAP financial measures should not be considered in isolation from, as substitutes for, nor superior to financial measures prepared in accordance with GAAP. Please see below for reconciliations of TCE revenue, TCE per day, EBITDA and Adjusted EBITDA.

Reconciliation of Voyage Revenue to TCE per Day

For the Three Months Ended December 31,

For the Twelve Months Ended December 31,

2020

2019

2020

2019

(in thousands of U.S. dollars, except fleet data)

Crude

Fleet

Product

Fleet

Crude

Fleet

Product

Fleet

Crude

Fleet

Product

Fleet

Crude

Fleet

Product

Fleet

 

 

 

 

 

 

 

 

 

 

 

 

Voyage revenue

$32,768

 

$57,267

 

$79,684

 

$106,623

 

$235,563

 

$360,347

 

$212,788

 

$366,996

 

Voyage expense

(17,437

)

(14,218

)

(24,055

)

(39,179

)

(73,337

)

(115,244

)

(88,438

)

(142,237

)

Amortization of time charter contracts acquired

581

 

14

 

581

 

176

 

2,324

 

466

 

1,762

 

627

 

Off-hire bunkers in voyage expenses

10

 

42

 

6

 

262

 

503

 

376

 

625

 

1,539

 

Commercial management pool fees

-

 

1,344

 

 

-

 

-

 

 

-

 

2,377

 

 

-

 

-

 

Load-to-discharge/Discharge-to-discharge

(676

)

150

 

3,265

 

1,514

 

(3,730

)

(1,359

)

3,800

 

1,809

 

Revenue from sold vessels

-

 

(5

)

-

 

77

 

-

 

(15

)

-

 

50

 

TCE Revenue

$15,246

 

$44,594

 

$59,481

 

$69,473

 

$161,323

 

$246,948

 

$130,537

 

$228,784

 

Operating days

1,472

 

4,600

 

1,472

 

4,600

 

5,856

 

18,300

 

5,496

 

16,957

 

Off-hire/Dry Docking days

2

 

55

 

1

 

66

 

211

 

279

 

172

 

579

 

Revenue days

1,470

 

4,545

 

1,471

 

4,534

 

5,645

 

18,021

 

5,324

 

16,378

 

TCE per day

$10,374

 

$9,812

 

$40,443

 

$15,322

 

$28,580

 

$13,704

 

$24,517

 

$13,969

 

Reconciliation of Net Income/(Loss) to EBITDA and Adjusted EBITDA

EBITDA represents net income (loss) before interest expense, income taxes and depreciation and amortization expense. Adjusted EBITDA consists of EBITDA adjusted for the impact of certain items that we do not consider indicative of our ongoing operating performance. EBITDA and Adjusted EBITDA are presented to provide investors with meaningful additional information that management uses to monitor ongoing operating results and evaluate trends over comparative periods. EBITDA and Adjusted EBITDA do not represent, and should not be considered a substitute for, net income (loss) or cash flows from operations determined in accordance with GAAP. EBITDA and Adjusted EBITDA have limitations as analytical tools, and should not be considered in isolation, or as a substitute for analysis of our results reported under GAAP. Some limitations are:

  • EBITDA and Adjusted EBITDA do not reflect our cash expenditures, or future requirements for capital expenditures or contractual commitments;
  • EBITDA and Adjusted EBITDA do not reflect changes in, or cash requirements for, our working capital needs; and
  • EBITDA and Adjusted EBITDA do not reflect the significant interest expense, or the cash requirements necessary to service interest or principal payments, on our debt.

While EBITDA and Adjusted EBITDA are frequently used by companies as a measure of operating results and performance, neither of those items as prepared by the Company is necessarily comparable to other similarly titled captions of other companies due to differences in methods of calculation. The following table reconciles net income/(loss), as reflected in the consolidated statements of operations, to EBITDA and Adjusted EBITDA:

 

For the Three Months

Ended December 31,

For the Twelve Months

Ended December 31,

(in thousands of U.S. dollars)

2020

2019

 

2020

 

2019

 

 

 

 

 

 

 

 

Net income (loss)

$(56,862

)

$26,758

 

 

$26,396

 

 

$(10,082

)

Total other expense, net

6,634

 

14,611

 

 

34,401

 

 

49,031

 

Operating income

(50,228

)

41,369

 

 

60,797

 

 

38,949

 

Depreciation and amortization

29,185

 

28,741

 

 

115,783

 

 

108,703

 

Noncontrolling interest

(1,727

)

(1,541

)

 

(6,508

)

 

(2,936

)

EBITDA

$(22,770

)

$68,569

 

 

$170,072

 

 

$144,716

 

Fair value of TC amortization

595

 

 

757

 

 

2,789

 

 

2,389

 

Nonrecurring corporate expenses

628

 

 

594

 

 

1,474

 

 

2,657

 

Loss on sale of vessels/cancelled project cost

29,551

 

 

-

 

 

29,551

 

 

18,344

 

Adjusted EBITDA

$8,004

 

$69,920

 

 

$203,886

 

 

$168,106

 

 

Contacts

Investor Relations Inquiries:
Robert Brinberg
Tel: +1-212-517-0810
E-mail: IR@diamondsshipping.com

Contacts

Investor Relations Inquiries:
Robert Brinberg
Tel: +1-212-517-0810
E-mail: IR@diamondsshipping.com