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Exmar provides trading update for third quarter |
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Wednesday, 28 October 2009 |
 The Executive Committee of EXMAR NV yesterday reported its trading update for the third quarter of 2009.
LPG
The operating result (EBIT) of the LPG fleet in the third quarter was
USD 0.4 million (compared to USD 6.2 million for the third quarter of
2008).
Midsize – The fleet enjoys the benefit of a very significant cover
portfolio with highly reputable counterparties. This advantageous
position is key for EXMAR while the overall market is experiencing very
challenging conditions. The balance of the year on EXMAR’s fleet is
covered for about 95% at rewarding levels. Secured coverage on the
fleet amounts to more than 80% in 2010 and 50% for 2011, at which time
it is anticipated that trading conditions will improve substantially.
Results for the fleet were influenced by approx. 90 off-hire days during the quarter.
VLGC – EXMAR’s fleet cover of more than 50% has been supportive but
exposure to the spot market has had more than an offsetting effect.
Despite the fact that freight levels seem to have bottomed-out the
market remains depressed with spot earnings
not exceeding operating costs. Reduced LPG export volumes from the
Middle East and the lack of long-haul trading opportunities still
generate considerable idle time, particularly East of Suez.
The fleet is covered for the balance of the year at 56% on fixed hire
income at premium levels to the spot market. Cover for 2010 is 50%.
Similar to the Midsize segment, it is anticipated that the trading
situation will become more favourable within the next twelve to
eighteen months.
Pressurised - EXMAR and Wah Kwong took delivery of two more vessels,
HELANE (5,000 m³) and MARIANNE (3,500 m³), on respectively 4th August
and 9th September. Whereas the only spot vessel of the fleet remains
dedicated to petrochemical trading, two more time-charters have been
concluded for LPG transportation within Northwest Europe.
As much as 85% of the delivered pressurised fleet is covered for the balance of the year.
LNG
The LNG fleet contributed USD 10.9 million to the operating result
(EBIT) of the third quarter (compared to USD 10.7 million for the same
period in 2008).
On 19th October, EXMAR sold its 50% interest in LNGRV EXQUISITE to
Excelerate Energy. EXMAR will remain responsible for the operations and
maintenance of the vessel.
Construction of the LNGRV’s EXPEDIENT and EXEMPLAR continues with
deliveries planned on 30th November 2009 and thirdquarter 2010,
respectively. These two vessels will be employed by Excelerate Energy
under 25-year time-charter contracts.
The EXCEL remains under short-term employment with extension
discussions currently underway. Due to currently low employment
conditions, the revenue deficiency mechanism in place to ensure minimum
income for the vessel is utilised.
OFFSHORE
The Offshore activities contributed USD -0.5 million to the operating
result (EBIT) of the third quarter (USD 0.1 million for the third
quarter in 2008).
The refurbishment of the accommodation barge KISSAMA will soon be
completed. Two potential employment opportunities are currently being
discussed.
The semi-submersible production platform OPTI-EX™ was delivered by
Kiewit Offshore on 31st July. Employment discussions are ongoing for
projects in Brazil, West Africa and the U.S. Gulf.
SERVICES & HOLDING
The contribution to the operating result of the Services activities
(EXMAR Shipmanagement, BELGIBO and TRAVEL PLUS) is USD 0.6 million for
the third quarter. Combined with Holding activities, the operating
result becomes USD -1.0 million (compared to USD -0.8 million for the
third quarter of 2008).
On 16th October, the Board of Directors of EXMAR decided to propose to
the shareholders to realise a capital increase in the amount of EUR 100
million. All existing shareholders will have the opportunity to
participate in the transaction through the exercise of their
preferential rights. An Extraordinary Shareholders’ Meeting is
scheduled on 13th November 2009. The proposed capital increase is
intended to strengthen the balance sheet of EXMAR and to support the
further growth ambitions of the Group.
Source: Exmar
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