Grindrod Shipping Holdings Ltd. 2018 Second Half and Full Year Financial Results

.' data-reactid="120">There will be concurrent live and then archived slides and audio webcast of the conference call, accessible via the internet through the Grindrod Shipping website www.grinshipping.com. Participants to the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.

The slide presentation of the results for the second half and full year ended December 31, 2018 will be accessible in PDF format 10 minutes prior to the conference call and webcast on the Investor Relations section of our website located at www.grinshipping.com. Participants to the webcast can download the PDF presentation. The conference call will take participants through the slide presentation on the website.

About Grindrod Shipping Holdings Ltd.

Grindrod Shipping owns and operates a diversified fleet of owned and long-term and short-term chartered-in drybulk vessels and product tankers. The drybulk business, which operates under the brand “Island View Shipping” (“IVS”) includes a fleet of 18 handysize drybulk carriers and 12 supramax/ultramax drybulk carriers on the water with five ultramax drybulk carriers under construction in Japan due be delivered in 2019 and 2020. The tanker business, which operates under the brand “Unicorn Shipping” (“Unicorn”) includes a fleet of eight medium range tankers and three small tankers. The Company is based in Singapore, with offices in London, Durban, Tokyo, Cape Town and Rotterdam. Grindrod Shipping is listed on NASDAQ under the ticker “GRIN” and on the JSE under the ticker “GSH”. 

Fleet Table

The following table sets forth certain summary information regarding our fleet as of the date of this press release:

Drybulk Carriers – Owned Fleet (24 Vessels)

Drybulk Carriers Under Construction – Owned Fleet (2 Vessels)

Tankers – Owned Fleet (11 Vessels)⁽⁹⁾

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⁽¹⁾ Owned through a joint venture with Mitsui & Co Ltd. in which we have a 51% interest.
⁽²⁾ Expiration date range represents the earliest and latest redelivery periods due to extension options.
⁽³⁾ Owned through a joint venture with Regiment Capital Ltd. and Sankaty European Investments III, S.a.r.l. in which we have a 33.5% interest.
⁽⁴⁾ Constructed at Tsuneishi Cebu Shipyard, a subsidiary of Tsuneishi Shipbuilding of Japan.
⁽⁵⁾ In February 2019 the joint venture with Engen Petroleum Limited, in which we have a 50% interest, entered into an agreement to sell the medium range tanker Lavela to a third party. The vessel is scheduled to deliver to her new owners during March 2019.
⁽⁶⁾ Our eco Medium Range product tankers, other than Matuku, are commercially managed by Mansel Limited.  Mansel, an affiliate of Vitol, procures shipping for various oil cargoes traded by Vitol.
⁽⁷⁾ Includes purchase options for Grindrod Shipping. For IVS Augusta and IVS Pinehurst, we have the option to purchase either, but not both, of these vessels of our choice.
⁽⁸⁾ Commercially managed by us alongside the IVS Handysize Pool.
⁽⁹⁾ Fleet table does not include the remaining vessel owned by the Leopard Tankers joint venture, which is expected to be delivered to Vitol imminently.

Selected Historical and Statistical Data of Our Operating Fleet⁽¹⁾

Set forth below are selected historical and statistical data of our operating fleet for the six months ended December 31, 2018 and 2017, and the 12 months ended December 31, 2018 and 2017, that we believe may be useful in better understanding our operating fleet's financial position and results of operations. This table contains certain information regarding TCE per day, which is a non-GAAP measure. For a discussion and reconciliation of these measures, see "Non-GAAP Financial Measures" at the end of this press release.

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⁽¹⁾ Segment historical and statistical data of our operating fleet include the proportionate share of joint ventures which is not reflected in our combined results of operations.
⁽²⁾ Calendar days: total calendar days the vessels were in our possession for the relevant period.
⁽³⁾ Available days: total number of calendar days a vessel is in our possession for the relevant period after subtracting off-hire days for scheduled drydocking and special surveys. We use available days to measure the number of days in a relevant period during which vessels should be available for generating revenues.
⁽⁴⁾ Operating days: the number of available days in the relevant period a vessel is controlled by us after subtracting the aggregate number of days that the vessel is off-hire due to a reason other than scheduled drydocking and special surveys, including unforeseen circumstances. We use operating days to measure the aggregate number of days in a relevant period during which vessels are actually available to generate revenues.
⁽⁵⁾ Owned fleet operating days: the number of operating days in which our owned fleet is operating for the relevant period.
⁽⁶⁾ Long-term charter-in days: the number of operating days in which our long-term charter-in fleet is operating for the relevant period. We regard chartered-in vessels as long-term charters if the period of the charter that we initially commit to is 12 months or more. Once we have included such chartered-in vessels in our Fleet, we will continue to regard them as part of our Fleet until the end of their chartered-in period, including any period that the charter has been extended under an option, even if at a given time the remaining period of their charter may be less than 12 months.
⁽⁷⁾ Short-term charter-in days: the number of operating days for which we have chartered-in third party vessels for durations of less than one year for the relevant period.
⁽⁸⁾ Fleet utilization: the percentage of time that vessels are available for generating revenue, determined by dividing the number of operating days during a relevant period by the number of available days during that period. We use fleet utilization to measure a company’s efficiency in technically managing its vessels.
⁽⁹⁾ TCE per day: vessel revenues less voyage expenses during a relevant period divided by the number of operating days during the period. The number of operating days used to calculate TCE revenue per day includes the proportionate share of our joint ventures’ operating days and includes charter-in days. See “Non-GAAP Financial Measures” at the end of this press release.
⁽¹⁰⁾ Vessel operating costs per day: Vessel operating costs per day represents vessel operating costs divided by the number of calendar days for owned vessels. The vessel operating costs and the number of calendar days used to calculate vessel operating costs per day includes the proportionate share of our joint ventures’ calendar day and excludes charter-in costs and charter-in days.
⁽¹¹⁾ Long-term charter-in costs per day: Charter hire expenses associated with long-term charter-in vessels divided by long-term charter-in days for the relevant period.

The tables below present the breakdown of charter hire expense into long-term charter hire expense and short-term charter hire expense for the six months to December 31, 2018 and 2017, and for the 12 months to December 31, 2018 and 2017:

 

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⁽¹⁾ Charter hire cost incurred by the joint ventures are included within the operating segment information on a proportionate consolidation basis.  Accordingly, joint ventures’ proportionate financial information are adjusted out to reconcile to the unaudited interim condensed consolidated and combined financial statements.

Unaudited Condensed Consolidated and Combined Statement of Financial Position

* Amount is less than US$1.00

Unaudited Condensed Consolidated and Combined Statement of Profit or Loss