Gram Car Carriers ASA

Earnings Release • Aug 15, 2023

Gram Car Carriers ASA: Q2 2023 results and increased dividend

Gram Car Carriers ASA: Q2 2023 results and increased dividend

Oslo, 15 August 2023 - Gram Car Carriers ASA ('GCC'), the world's third-largest

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

quarter and first half of 2023 and approved the company's sixth consecutive

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

of net profit.

Key events:

· Board of Directors approves dividend of USD 0.47 per share for Q2 2023,

equal to 75% of the net profit of USD 18.1 million

· Sixth consecutive quarter with increased dividend with Q2 2023 dividend up

110% from Q1 2023

· Q2 2023 revenue of USD 48.4 million and EBITDA of USD 32.9 million

· Q2 2023 average TCE rate per day: Panamax USD 39,130, Mid-size USD 30,270

and Distribution fleet USD 17,600

· Total revenue backlog of USD 826 million

· GCC shares commenced trading on the OTCQX® Best Market in New York

· Agreed to sell two Distribution vessels to modernise fleet and capitalise on

high asset prices (July)

· Acquired 75% of Mid-size vessel at attractive price point (July)

· Well positioned in historically strong market with 2%/20%/24% open days in

2023/24/25

· Favourable market outlook with high charter rates and long contract

durations

"We are pleased to deliver on our commitment to provide attractive and growing

shareholder distributions in line with our increased dividend pay-out ratio.

This is supported by continued strong operational performance and cash

generation from a near-record revenue backlog providing long-term earnings

visibility. We expect further positive development as additional vessels start

on new charters reflecting the strong car shipping market fundamentals," said

Georg A. Whist, the CEO of GCC.

Second quarter 2023 operating revenue of USD 48.4 million reflected improved

average time charter rates across all segments compared to the prior quarter.

Vessel operating expenses amounted to USD 12.9 million. Administrative expenses

were USD 2.7 million and included non-cash expenses of USD 0.6 million relating

to long-term employee incentive programs.

EBITDA was USD 32.9 million, an increase from USD 27.7 million in the first

quarter of 2023, and EBIT amounted to USD 25.1 million (USD 20.1 million). Net

financial expenses of USD 7.6 million reflected mainly interest expense on

vessel loans and leases. Net profit for the quarter was USD 18.1 million, equal

to earnings of USD 0.62 per share.

During the quarter, the Company completed the second special periodic survey of

the Mid-size vessel Viking Sea, resulting in seven days off-hire in the

beginning of the period. The Panamax vessel Viking Bravery arrived in China for

installation of an exhaust scrubber at the end of June, resulting in five days

off-hire in the second quarter. The Viking Bravery is expected to complete the

installation end of July 2023 after which it will commence on a five-year time

charter. The Company recognised approximately USD 1.0 million of non-recurring

operating expenses during the quarter related to repairs which did not impact

vessel utilisation.

The average fleet TCE was USD 28,770 per day in the second quarter, an increase

from USD 25,620 in the first quarter of 2023. The higher TCE was a function of

higher dayrates for all vessel types, Panamax at USD 39,130 (USD 30,060), the

Mid-size fleet at USD 30,270 (USD 29,100) and the Distribution fleet at USD

17,600 (USD 15,540). Daily earnings for the fleet are set to increase further

with the Viking Bravery commencing under its new five-year charter and the two

distribution vessels Viking Odessa and City of Oslo under new contracts with

higher earnings for the full quarter in third quarter. The fixing of the last

open Panamax vessel, Viking Queen, is expected to impact positively on earnings

from end of first quarter 2024.

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

per vessel going forward, stable from the previous quarter (USD 16,920 per day)

as lower margins on the main credit facilities offset the impact of higher

interest rates.

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

cash flow. Following an assessment of the Company's dividend capacity, the

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 0.47 per share for

the second quarter of 2023, in line with policy. This represents the sixth

consecutive quarterly distribution from the Company to shareholders. The

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

May, GCC paid a dividend of USD 0.224 per share for the first quarter of 2023.

Presentation

The company will today at 10:00 CEST 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/ca0ee8a793

Questions may be submitted online during the presentation.

The second quarter and first half 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 20 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.