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Baltic Trading Limited Announces Fourth Quarter Financial Results

Wednesday, 22 February 2012 | 00:00
Baltic Trading Limited yesterday reported its financial results for the three and twelve months ended December 31, 2011. The following financial review discusses the results for the three months and years ended December 31, 2011 and December 31, 2010.
Financial Review: 2011 Fourth Quarter
The Company recorded net income for the fourth quarter of 2011 of $1.8 million, or $0.08 basic and diluted earnings per share. Comparatively, for the three months ended December 31, 2010, the Company recorded net income of $3.7 million, or $0.17 basic and diluted earnings per share.
EBITDA was $6.6 million for the three months ended December 31, 2011 versus $8.4 million for the three months ended December 31, 2010.
John C. Wobensmith, President and Chief Financial Officer, commented, "During the fourth quarter and full year 2011, Baltic Trading continued to employ its entire fleet of modern drybulk vessels on spot market-related time charters with multi-national companies while maintaining an efficient cost structure and strong balance sheet with low debt. Based on the implementation of our corporate strategy in a challenging drybulk market, we declared a fourth quarter dividend of $0.13 per share, representing our seventh consecutive dividend since going public in March of 2010. As we maintain our focus on distributing a substantial portion of our cash flows to shareholders, we plan to continue to secure our high-quality vessels on contracts at rates closely correlated with the various Baltic Dry indices."
Baltic Trading Limited's revenues decreased to $13.1 million for the three months ended December 31, 2011 compared to $15.2 million for the three months ended December 31, 2010 due to lower spot market rates achieved by our vessels during the fourth quarter of 2011.
The average daily time charter equivalent, or TCE, rates obtained by the Company's fleet was $15,437 per day for the three months ended December 31, 2011 as compared to $18,596 per day for the three months ended December 31, 2010. The decrease was due to lower spot rates achieved by the vessels in our fleet during the fourth quarter of 2011 versus the fourth quarter of 2010. The return of iron ore and coal cargoes during the second half of the year benefited earnings on our vessels that trade on spot-market related charters. Capesize rates for the quarter peaked in December, followed by relative weakness in the last two weeks of the year.
Total operating expenses were $10.2 million for the three months ended December 31, 2011 compared to $10.4 million for the three months ended December 31, 2010. Vessel operating expenses increased to $4.3 million for the three months ended December 31, 2011 from $4.2 million for the three months ended December 31, 2010 due to the expansion of our fleet during the fourth quarter of 2010. General, administrative and technical management fees decreased to $1.3 million in 2011 from $1.7 million during the comparative period. Depreciation and amortization expenses for the fourth quarter of 2011 were $3.7 million, in line with the same period during 2010. For the year beginning January 1, 2011, the Company revised its estimated residual scrap value from $175 per lightweight ton to $245 per lightweight ton which had the impact of decreasing depreciation expense by $0.1 million for the three months ended December 31, 2011. The change in residual scrap value will only affect depreciation on a prospective basis.
Daily vessel operating expenses, or DVOE, marginally decreased to $5,133 per vessel per day for the fourth quarter of 2011 from $5,167 per vessel per day for the same period the prior year. We believe daily vessel operating expenses are best measured for comparative purposes over a 12month period in order to take into account all of the expenses that each vessel in our fleet will incur over a full year of operation. Based on estimates provided by our technical managers and management's expectations, we expect DVOE for 2012 to be $5,300 per vessel per day on a weighted average basis.
Financial Review: Full Year 2011
The Company recorded a net loss of $0.4 million or $0.02 basic and diluted net loss per share for the year ended December 31, 2011, compared to net income of $8.3 million or $0.46 basic and diluted earnings per share for the year ended December 31, 2010. Voyage revenues increased to $43.5 million for the year ended December 31, 2011 compared to $32.6 million for the year ended December 31, 2010 due to operation of a larger fleet. EBITDA was $18.8 million for the year ended December 31, 2011 versus $17.7 million for the year ended December 31, 2010. TCE rates obtained by the Company decreased to $13,050 per day for the year ended December 31, 2011 from $19,692 per day for the year ended December 31, 2010 mainly due to lower rates achieved for our vessels in 2011 as opposed to the year before. Total operating expenses were $39.4 million for the year ended December 31, 2011 compared to $22.2 million for the year ended December 31, 2010 due to the operation of a larger fleet, and daily vessel operating expenses per vessel were $4,872 in 2011 versus $5,016 in 2010.
Source: Baltic Trading Ltd.
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