Gram Car Carriers ASA

Earnings Release • Apr 24, 2024

Gram Car Carriers ASA: Q1 2024 results and dividend

Gram Car Carriers ASA: Q1 2024 results and dividend

Oslo, 24 April 2024 - Gram Car Carriers ASA ('GCC'), the world's third-largest

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

quarter of 2024 and approved the company's ninth consecutive quarterly dividend

reflecting a pay-out ratio of 75% of net profit in line with policy.

Highlights:

· Board of Directors approved ninth consecutive quarterly dividend of USD

0.819 per share for Q1 2024

· Equal to 75% of the net profit of USD 31.2 million

· Q1 2024 revenue of USD 54.9 million and EBITDA of USD 40.8 million

· Q1 2024 average TCE rate per day: Panamax USD 56,700, Mid-size USD 30,270

and Distribution USD 25,830

· Total revenue backlog of USD 794 million at end Q1 2024

· Refinancing of Viking Adventure at competitive terms

· Sale of Viking Amber (4,200 CEU, 2010) to capture high second-hand values

· Favourable market outlook with high charter rates and long contract

durations

"We deliver another strong quarter through execution on our substantial revenue

-backlog, value-creating vessel transactions and reduced debt margins. We

maintain our focus on operational performance and customer service which are key

drivers for profitable growth and value creation for our shareholders," said

Georg A. Whist, the CEO of Gram Car Carriers.

First quarter operating revenue of USD 54.9 million reflected improved average

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

prior quarter. This was offset by off-hire relating to the drydocking of the

Distribution vessel Hoegh Caribia and Mid-size vessel Viking Drive, resulting in

a slight decrease compared to fourth quarter of 2023.

Vessel operating expenses amounted to USD 11.3 million. Administrative expenses

were USD 2.7 million and included non-cash expenses of USD 0.7 million relating

to long-term employee incentive programs.

EBITDA was USD 40.8 million, down slightly from USD 41.6 million in the fourth

quarter of 2023. EBIT was USD 38.6 million, including the USD 5.6 million Viking

Princess gain. Net financial expenses of USD 7.4 million reflected mainly

interest expense on vessel loans and leases, as well as USD 1.5 million in non

-recurring costs in connection with vessel refinancing activities. Net profit

for the quarter was USD 31.2 million, equal to earnings of USD 1.08 per share.

On 12 February, the Viking Queen was delivered to the new charterer, commencing

a five-year timecharter (TC). With the vessel on its new contract, the average

daily earnings (TCE) for the four Panamax vessels in the GCC fleet increased

from USD 50,750 to USD 56,700.

In the first quarter, the Mid-size vessel Viking Drive had a planned

Intermediate docking and special survey. The off-hire period was longer-than

-expected due to the impact of Chinese New Year celebrations on yard efficiency,

more steel replacements than anticipated and required follow-up repairs. The

Distribution vessel Höegh Caribia completed its planned special survey and bow

repairs. The net financial impact is approximately USD 1.5 million after

insurance, reflecting off-hire and incident related costs.

GCC's vessels remain restricted from passing through the Red Sea after the

Norwegian Maritime Authority in December raised the security level in the

southern part of the Red Sea to the highest level. GCC monitors the situation

closely and will review and update this policy when appropriate based on

recommendations from relevant authorities.

The average fleet TCE was USD 33,720 per day in the first quarter, an increase

from USD 32,300 in the fourth quarter of 2023. The higher TCE was mainly a

function of the Viking Queen starting its new charter in February.

The Company estimates an average cash flow breakeven rate of USD 17,860 per day

per vessel going forward, little changed from USD 17,720 in the previous

quarter.

On 6 February, the Company announced the sale of the Mid-size vessel Viking

Amber (4,200 CEU, built 2010) for a total cash consideration of USD 64.6

million. The vessel will be delivered to the new owner in April. GCC expects to

recognise a net book gain of USD 36.5 million upon completion of the sale in the

second quarter of 2024. The transaction is in line with GCC's strategy of

creating additional value in a strong car shipping market with historically high

charter rates and asset values.

The Board of Directors has approved a cash dividend of USD 0.819 per share for

the first quarter of 2024, in line with policy. This is the ninth consecutive

quarterly distribution from the Company to shareholders. The distribution shall

constitute a repayment of the Company's paid in capital. In February, GCC paid a

dividend of USD 0.979 per share for the fourth quarter of 2023.

Presentation

The company will today at 10:00 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/fdb4950e9a

Questions may be submitted online during the presentation.

The first quarter report is 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 18 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.