Gram Car Carriers ASA

Earnings Release • Apr 21, 2023

Gram Car Carriers ASA: Q1 2023 results and proposed dividend

Gram Car Carriers ASA: Q1 2023 results and proposed dividend

Oslo, 21 April 2023 - Gram Car Carriers ASA ('GCC'), the world's third-largest

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

quarter of 2023 and proposed the company's fifth consecutive quarterly dividend.

The Company also announced its intention to increase the dividend pay-out ratio

to 75% of net income starting from the second quarter.

Key events:

· Board of Directors approved dividend of USD 0.224 per share for Q1 2023,

equal to 50% of net income

· Q1 2023 revenue of USD 41.1 million and EBIT of USD 20.1 million

· Q1 2023 average TCE rate per day: Panamax USD 30,060, Mid-size USD 29,100

and Distribution fleet USD 15,540

· Total revenue backlog of USD 874 million

· Well positioned in historically strong market with 3%/20%/24% open days in

2023/24/25

· Favourable market outlook with high charter rates and long contract

durations

· Reduced margins under credit facilities, contributing to significantly lower

interest expense

· Board proposes to increase the dividend pay-out ratio to 75% of net income

from Q2 2023, adjusted dividend policy to be presented at the AGM

"Our vision is to be a leader in sustainable transport solutions to the global

auto industry. We deliver on that vision through continued strong operational

performance and cash generation as an increasing share of our fleet starts new

charters reflecting the strong car shipping market fundamentals. The combination

of a record revenue backlog, good long-term earnings visibility and an increase

in our dividend pay-out ratio provides a strong foundation for growing,

attractive shareholder distributions going forward," said Georg A. Whist, the

CEO of GCC.

First quarter 2023 operating revenue of USD 41.1 million reflected improved

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

EBITDA was USD 27.7 million, an increase from USD 23.0 million in the fourth

quarter of 2022, and EBIT amounted to USD 20.1 million (USD 16.0 million). Net

financial expenses of USD 6.9 million reflected mainly interest expense on

vessel loans and leases. Net income for the quarter was USD 13.1 million, equal

to earnings of USD 0.45 per share.

During the first quarter, the Company completed the second special periodic

survey of the Mid-size vessel Viking Ocean within schedule, resulting in 21 days

off-hire. The Mid-size vessel Viking Sea also commenced second special survey

during the quarter, resulting in 13 days off-hire in first quarter and seven

days in second quarter. The Mid-sized vessel Viking Diamond underwent 36 days of

repairs covered by insurance.

The average fleet TCE was USD 25,620 in the first quarter, an increase from USD

22,720 in the fourth quarter of 2022. The higher TCE was a function of higher

dayrates for all vessel types, Panamax at USD 30,060 (USD 26,590), the Mid-size

fleet of USD 29,100 (USD 25,900) and the Distribution fleet at USD 15,540 (USD

13,680). Daily earnings from the fleet are set to increase further over the next

quarters as vessels start on new contracts at higher dayrates.

The Company estimates an average cash flow breakeven rate of USD 16,920 per day

per vessel going forward. The decrease from the USD 17,270 per day communicated

in the fourth quarter report on 9 February 2023, reflects lower debt servicing

cost following a reduction of the margin on the main credit facility.

In April 2023, GCC have agreed with the lenders in the USD 302 million credit

facility to reduce the margin from fixed 3.26% to a net interest-bearing debt/

EBITDA grid pricing. The applicable margin from the second quarter of 2023 will

be 2.75%, with subsequent quarterly revisions. The lenders have also agreed to a

reallocation of USD 40 million from the term loan facility to the revolving

credit facility, providing GCC with increased flexibility to optimise capital

structure and cost. The margin in the USD 15 million facility has been reduced

from 4.96% to 4.20%

The Board of Directors has proposed a cash dividend of USD 0.224 per share for

the first quarter of 2023, equal to 50% of net income for the period. This

represents the fifth consecutive quarterly distribution from the Company to

shareholders. The distribution shall constitute a repayment of the Company's

paid in capital. In March, GCC paid a dividend of USD 0.169 per share for the

fourth quarter of 2022.

During the past year, GCC has built a significant revenue backlog providing good

visibility on future cash flow. Management and the Board of Directors have

assessed the Company's dividend capacity and concluded to increase the dividend

pay-out ratio from 50% to 75% of net profit. The revised dividend policy shall

be effective starting from the second 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/d74f83987e39ef32f752f77f

Questions may be submitted online during the presentation.

The first 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.