Hunter Group ASA - Fourth Quarter Results 2019
28 February 2020
Financial highlights
Total revenues of USD 24.43m
− USD 12.03m pool revenue
− USD 12.31m gain on sale of H.No. 5457
− USD 0.10m primarily related to newbuild supervision services
Total operating expenses of USD 3.41m
− Vessel opex incl. insurance of USD 1.44m
− Voyage expenses of USD 1.97m, primarily relating to “start-up” fuel and voyage related insurance costs prior to pool entry
− G&A expenses of 0.41m
- USD 0.11m administrative expenses
- USD 0.07m legal expenses
- USD 0.23m non-cash expenses
Net profit of USD 16.11m
Average daily net pool earnings of USD 66,600, including maiden voyages for all pool vessels
Opex incl. insurance of USD 6,240 per day
Pool days and operating days of 181 and 231, respectively
USD 120m of yard payments of were made during the quarter, leaving USD 269m of remaining yard obligations as of year end 2019
Key events in Q4 2019
Hunter Saga was delivered on 19 October 2019, more than 40 days ahead of the original delivery schedule
Hunter Laga was delivered on 1 November 2019, more than 80 days ahead of the original delivery schedule
Both vessels were delivered to SFL in accordance with the Sale-and-Leaseback Agreement. The Company received proceeds of USD 120 million from the transaction and subsequently bareboat chartered the vessels back
Subsequently, all three of the delivered vessels entered the Tankers International Scrubber Pool, and have completed all necessary inspections
The Company took delivery of H.No. 5457 and the vessel was delivered to her new owner in accordance with the Memorandum of Agreement. All funds have been transferred and the transaction is complete
Subsequent events
The Company has secured a 3-year USD 220 million loan facility from a syndicate of banks consisting of Danske Bank, DNB, Nordea and SEB. The proceeds will be used to fund the final instalments for the Company's four remaining newbuild VLCCs, as well as general corporate purposes, and will be drawn on delivery of each vessel. The facility will carry a 275bps margin over LIBOR, and have a 16 year repayment profile. Subsequently, the RCF with Apollo has been cancelled
As of the date of this report around 70% of available pool days have been booked at an average TCE of approx. USD 88,300
Presentation
In connection with the release, a presentation will be held on March 6 2020, 11:00 (CET), at the offices of Danske Bank Norway, Bryggetorget 4, Oslo.
If you wish to attend, please register with Anna Mette Synnerström (ansy@danskebank.com)
Contact:
Erik A.S. Frydendal, CEO, ef@huntergroup.no, Ph.: +47 957 72 947
Lars M. Brynildsrud, CFO, lb@huntergroup.no, Ph.: +47 932 60 882
This information is subject to disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.