Gram Car Carriers ASA

Earnings Release • Nov 3, 2023

Gram Car Carriers ASA: Q3 2023 results and increased dividend

Gram Car Carriers ASA: Q3 2023 results and increased dividend

Oslo, 3 November 2023 - Gram Car Carriers ASA ('GCC'), the world's third-largest

car carrier tonnage provider, today reported interim results for the third

quarter of 2023 and approved the company's seventh consecutive quarterly

dividend reflecting earnings growth and increased pay-out ratio of 75% of net

profit.

Highlights:

· Board of Directors approved dividend of USD 0.645 per share for Q3 2023,

equal to 75% of the net profit of USD 24.9 million

· Seventh consecutive quarter with increased dividend, up 38% from Q2 2023

· Q3 2023 revenue of USD 54.9 million and EBITDA of USD 40.5 million

· Q3 2023 average TCE rate per day: Panamax USD 49,410, Mid-size USD 29,970

and Distribution USD 20,990

· Signed five-year contract for Viking Queen

· Total revenue backlog of USD 908 million at end Q3 2023

· Creating additional value through asset transactions

· Well positioned in historically strong market with 4%/11%/37% open days in

2024/25/26

· Favourable market outlook with high charter rates and long contract

durations

"We listed in early 2022 with the clear strategy of rechartering the fleet on

long-term contracts reflecting the strong market fundamentals to drive value

creation and shareholder distributions. Since then, we have signed over USD 1

billion worth of new contracts with leading operators at attractive dayrates and

built a record revenue backlog providing long-term visibility on earnings and

attractive quarterly dividends," said Georg A. Whist, the CEO of GCC.

Third quarter 2023 operating revenue of USD 54.9 million reflected improved

average time charter rates for the Distribution and Panamax segments compared to

the prior quarter. Vessel operating expenses amounted to USD 11.9 million.

Administrative expenses were USD 2.5 million and included non-cash expenses of

USD 0.7 million relating to long-term employee incentive programs.

EBITDA was USD 40.5 million, an increase from USD 32.9 million in the second

quarter of 2023, and EBIT amounted to USD 32.3 million, up from USD 25.1 million

in the second quarter of 2023. Net financial expenses of USD 7.4 million

reflected mainly interest expense on vessel loans and leases. Net profit for the

quarter was USD 24.9 million, equal to earnings of USD 0.86 per share.

The Viking Bravery completed its scrubber installation on budget and ahead of

schedule in late July before commencing a five-year time charter. In late July,

the Hoegh Caribia made contact with another vessel when exiting port. There were

no reported injuries, water ingress or pollution. The vessel resumed its voyage

on 1 August after temporary repairs. Full repairs are planned to commence at the

end of the year with an estimated net financial impact of approximately USD 1

million after insurance, reflecting a 30-day off-hire period and incident

related costs.

The average fleet TCE was USD 31,370 per day in the third quarter, an increase

from USD 28,770 in the second quarter of 2023. The higher TCE was a function of

higher dayrates for the Distribution and Panamax vessels, supported by the

Viking Bravery commencing its new five-year charter during the period and the

two distribution vessels Viking Odessa and City of Oslo having their first full

quarter on new charters with higher earnings. The recent fixing of the Viking

Queen, the last open Panamax vessel, is expected to impact positively on

earnings from February 2024.

The Company estimates an average cash flow breakeven rate of USD 16,950 per day

per vessel going forward, unchanged from the previous quarter.

GCC has built a significant revenue backlog providing good visibility on future

cash flow. The Company's dividend pay-out ratio was increased from 50% to 75% of

net profit effective from the second quarter of 2023.

The Board of Directors has approved a cash dividend of USD 0.645 per share for

the third quarter of 2023, in line with policy. This represents the seventh

consecutive quarterly distribution from the Company to shareholders. The

distribution shall constitute a repayment of the Company's paid in capital. In

August, GCC paid a dividend of USD 0.470 per share for the second quarter of

Presentation

The company will today at 09:00 CET hold a presentation hosted by Georg A.

Whist, the CEO of GCC, and Gunnar S. Koløen, the CFO. The presentation will be

held in English and conducted as a webcast with a live Q&A session at the end.

Use the following link to register for the presentation:

https://invitepeople.com/events/dbc7410ec7

Questions may be submitted online during the presentation.

The third quarter report and presentation are attached to this release and is

available on the company's website. A recording of the presentation will also be

made available.

For further information, please contact:

CEO Georg A. Whist

E-mail: georg.whist@gramcar.com

CFO Gunnar S. Koløen

E-mail: gunnar.koloen@gramcar.com

Head of Projects and IR Mas Gram

E-mail: ir@gramcar.com

About Gram Car Carriers:

GCC is the world's third-largest tonnage provider within the Pure Car Truck

Carriers (PCTCs) segment with 19 owned vessels, across the Distribution, Mid

-size and Panamax segments. The Company serves as a trusted provider of high

-quality vessels and logistics solutions ensuring safe, efficient and punctual

shipment of vehicles for a network of clients comprising of major global and

regional PCTC operators. To lean more, please visit gramcar.com.

This information is subject to the disclosure requirements pursuant to Section 5

-12 the Norwegian Securities Trading Act.