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ADS Maritime Holding
Quarterly Report • May 28, 2021
8170_rns_2021-05-28_e8b1da81-c9b6-40ac-9c45-40acec6206df.pdf
Quarterly Report
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Q1 2021
first quarter report
Contents
| Key financials | 3 |
|---|---|
| Future outlook and strategy | 3 |
| Interim consolidated statement of comprehensive income | 4 |
| Interim consolidated statement of financial position | 5 |
| Interim consolidated statement of cash flows | 6 |
| Interim consolidated statement of changes in equity | 7 |
| Notes to the interim consolidated financial statements | 8 |
Key financials
| 3 months | 12 months | |||
|---|---|---|---|---|
| (In thousands of USD) | Q1 2021 | Q1 2020 | 2020 | |
| Revenue | - | 25 236 | 57 160 | |
| Operating profit | (132) | 11 582 | 23 088 | |
| Net profit | (130) | 10 797 | 19 554 | |
| EPS (in USD per share) | (0.01) | 0.46 | 0.84 | |
| Dividend (in USD per share) | - | 0.30 | 0.48 | |
| Net cash flow | (50 509) | 8 857 | 50 373 | |
| Cash and cash equivalents | 5 173 | 14 167 | 55 682 | |
Following the vessel sales towards the end of 2020 the Company had no revenue generating assets during Q1 2021 and thus revenue was nil (Q1 2020 – USD 25.2 million). Total operating costs during the quarter were USD 0.1 million (Q1 2020 – USD 13.7 million) and the Company recorded a net loss of USD 0.1 million (Q1 2020 – USD 10.8 million).
During Q1 2021 the Company returned USD 51 million to shareholders by way of a capital payment, funded by the net proceeds from the vessels sales. At the end of the quarter the Company held cash and cash equivalents of USD 5.2 million (Q1 2020 – USD 14.2 million).
Future outlook and strategy
The Company's strategy is to make counter-cyclical investments in quality ships bought at prices discounted to new building parity, particularly tankers and bulkers, as well as projects with longterm secured cashflow, low residual risk, and solid returns on equity. The Company continues to evaluate investment opportunities in a range of vessel types and segments. The Company has a
cash balance of approximately USD 5 million at the end of Q1 2021 and expects to be reliant on new financing in order to acquire vessels in the future. In shipping, timing is essential and we will return to our shareholders at the 'right time'.
Interim consolidated statement of comprehensive income
| 3 months | 12 months | |||
|---|---|---|---|---|
| (In thousands of USD) Note |
Q1 2021 | Q1 2020 | 2020 | |
| Revenue | ||||
| Charter revenues | - | 25 236 | 57 160 | |
| Gain on disposal of vessel | - | - | 5 763 | |
| Total revenue | - | 25 236 | 62 923 | |
| Operating expenses | ||||
| Voyage expenses | - | (6 561) | (14 182) | |
| Vessel operating expenses | 34 | (2 720) | (10 625) | |
| General & administrative costs | (166) | (247) | (1 205) | |
| Depreciation | - | (4 127) | (13 823) | |
| Total operating expenses | (132) | (13 655) | (39 835) | |
| Operating profit | (132) | 11 582 | 23 088 | |
| Finance cost | - | (790) | (3 660) | |
| Finance income | 2 | 5 | 126 | |
| Profit before tax | (130) | 10 797 | 19 554 | |
| Income tax | - | - | - | |
| Profit after tax and total comprehensive income |
(130) | 10 797 | 19 554 | |
| (In USD) Earnings per share attributable to equity holders |
||||
| - Basic and diluted | 3 | (0.01) | 0.46 | 0.84 |
Interim consolidated statement of financial position
| At end of | |||
|---|---|---|---|
| (In thousands of USD) | Q1 2021 | Q1 2020 | 2020 |
| Assets | |||
| Non-current assets | |||
| Vessels | - | 77 441 | - |
| Total non-current assets | 77 441 | - | |
| Current assets | |||
| Receivables from customers | 127 | 4 963 | 573 |
| Other current assets | 415 | 5 552 | 868 |
| Restricted cash | - | 1 498 | - |
| Cash and cash equivalents | 5 173 | 14 167 | 55 682 |
| Total current assets | 5 715 | 26 178 | 57 122 |
| Total assets | 5 715 | 103 620 | 57 122 |
| Equity and liabilities | |||
| Equity | |||
| Issued share capital | 4 678 | 4 678 | 4 678 |
| Share premium | 207 | 51 207 | 51 207 |
| Retained earnings | (172) | 6 450 | (42) |
| Total equity | 4 713 | 62 336 | 55 843 |
| Non-current liabilities | |||
| Interest-bearing debt | - | 36 666 | - |
| Total non-current liabilities | - | 36 666 | - |
| Current liabilities | |||
| Other current liabilities | 856 | 2 020 | 1 129 |
| Trade payables | 145 | 2 597 | 150 |
| Total current liabilities | 1 001 | 4 618 | 1 279 |
| Total equity and liabilities | 5 715 | 103 620 | 57 122 |
Interim consolidated statement of cash flows
| 3 months | 12 months | ||
|---|---|---|---|
| (In thousands of USD) | Q1 2021 | Q1 2020 | 2020 |
| Cash flow from operating activities | |||
| Profit for the period | (130) | 10 797 | 19 554 |
| Adjustment for non-operating cash flow items | |||
| Depreciation | - | 4 127 | 13 823 |
| Gain on disposal of vessel | - | - | (5 763) |
| Interest expense | - | 665 | 2 797 |
| Interest income | - | - | (29) |
| Operating cash flow before working capital items | (130) | 15 588 | 30 383 |
| Working capital movements | 621 | 3 874 | 10 857 |
| Total operating cashflow | 491 | 19 462 | 41 240 |
| Cash flow from investing activities | |||
| Payments for vessels and equipment | - | (7 916) | (8 333) |
| Proceeds from disposal of vessels | - | - | 73 540 |
| Total cash flows used in investing activities | - | (7 916) | 65 207 |
| Cash flow from financing activities | |||
| Repayment of loan | - | - | (37 500) |
| Interest paid | - | (689) | (2 821) |
| Decrease/(increase) in restricted cash | - | - | 1 498 |
| Dividends paid | (51 000) | (2 000) | (17 250) |
| Total cash flow from financing activities | (51 000) | (2 689) | (56 074) |
| Net increase in cash and cash equivalents | (50 509) | 8 857 | 50 373 |
| Cash and cash equivalents at beginning of period | 55 682 | 5 309 | 5 309 |
| Cash and cash equivalents at end of period | 5 173 | 14 166 | 55 682 |
Interim consolidated statement of changes in equity
| (In thousands of USD apart from number of shares) | Number of | Issued share | Share | Retained | Total |
|---|---|---|---|---|---|
| shares | capital | premium | earnings | equity | |
| Balance at 1 January 2020 | 23 390 300 | 4 678 | 51 207 | (2 346) | 53 539 |
| Total comprehensive income for the period | - | - | - | 19 554 | 19 554 |
| Dividends paid during the period | - | - | - | (17 250) | (17 250) |
| Balance at 31 December 2020 | 23 390 300 | 4 678 | 51 207 | (42) | 55 844 |
| (In thousands of USD apart from number of shares) | Number of | Issued share | Share | Retained | Total |
|---|---|---|---|---|---|
| shares | capital | premium | earnings | equity | |
| Balance at 1 January 2021 | 23 390 300 | 4 678 | 51 207 | (42) | 55 844 |
| Total comprehensive income for the period | - | - | - | (130) | (130) |
| Dividends paid during the period | - | - | (51 000) | - | (51 000) |
| Balance at 31 March 2021 | 23 390 300 | 4 678 | 207 | (172) | 4 714 |
At 31 March 2021 the Company had issued 23,390,300 shares with par value USD 0.20 per share, totaling USD 4.7 million.
Notes to the interim consolidated financial statements
1. General information
These interim consolidated financial statements of ADS Maritime Holding Plc ("ADS Maritime Holding" or the "Company") were authorized for issue in accordance with a resolution of the Board of Directors passed on 27 May 2021.
ADS Maritime Holding Plc is a public limited company listed on the Euronext Growth at the Oslo Stock Exchange.
The Company is incorporated in Cyprus and the address of its registered office is OSM House, 22 Amathountos, 4532 Agios Tychonas, Limassol, Cyprus. The Company is domiciled in Cyprus and has Norwegian subsidiaries based in Arendal, Norway. The Company is managed by Arendals Dampskibsselskab AS. The principal activities of the Company are shipping investments.
2. Significant accounting policies 2.1 Basis of preparation
These interim financial statements are prepared in accordance with IAS 34 Interim financial reporting as issued by the International Accounting Standards Board (IASB) and as adopted by the EU. The interim financial statements do not include all the information and disclosures required by International
Financial Reporting Standards (IFRS) for a complete set of financial statements.
The accounting principles applied by the Company in these interim consolidated financial statements are consistent with those applied in the audited annual consolidated financial statements for the year ended 31 December 2020 unless otherwise stated below. Please refer to Note 2 Significant accounting policies in the 2020 Annual Report for information on the Company's accounting policies.
2.2 Going concern
These financial statements have been prepared based on the assumption of going concern.
During Q4 2020 the Company completed the sale of ADS Page and ADS Serenade, following the sale of ADS Stratus the preceding quarter. After repayment of vessel loans, sales related and operational costs the remaining net proceeds of the combined vessel sales were paid to shareholders by a reduction in share premium of USD 51 million, which was paid to shareholders on 1 March 2021. The Company currently does not own any vessels and at the end of Q1 2021 had approximately USD 5 million cash at bank. The Company expects to be reliant on new financing should it acquire vessels in the future.
3. Earnings per share
| 3 months | 12 months | ||
|---|---|---|---|
| Q1 2021 | Q1 2020 | 2020 | |
| Profit for the period (In thousands of USD) | (130) | 10 797 | 19,554 |
| Weighted average shares outstanding | 23 390 300 | 23 390 300 | 23 390 300 |
| Basic and diluted EPS (in USD) | (0.01) | 0.46 | 0.84 |
The Company has no dilutive or potential dilutive shares.
Cyprus
ADS Maritime Holding Plc, OSM House, 22 Amathountos 4532 Agios Tychonas Limassol, Cyprus Tel +357 25335501
Norway
ADS Crude Holding AS, PO Box 198, 4802 Arendal, Norway Tel: +47 41 49 40 00
Visiting Address Norway Sandvigveien 19 4816 Kolbjørnsvik Norway
Email: [email protected]
www.adsmh.com