Baltic Trading Sinks Further in Red
Marshal Islands dry bulk shipping company Baltic Trading Limited recorded a widened net loss for the first quarter of 2015 of USD 42.4 million, when compared to the same period in 2014, when the net loss amounted to USD 3.5 million.
EBITDA was USD 34.8 million for the first quarter of 2015 versus USD 3.1 million for the three months ended March 31, 2014.
“During the first quarter, we entered into a USD 148 million credit facility and sold two of our vessels, the Baltic Tiger and the Baltic Lion,” comments John C. Wobensmith, President and Chief Financial Officer.
The company’s revenues decreased to USD 6.9 million for the Q1 2015 compared to USD 13.1 million for the Q1 2014. The decrease was primarily attributed to lower rates achieved by the company’s vessels, partially offset by the increase in the size of the company’s fleet.
The average daily time charter equivalent (TCE) rates obtained by the company’s fleet was USD 4,941 per day for the three months ended March 31, 2015 as compared to USD 11,229 last year.
The decrease in TCE was primarily due to lower spot rates.
Baltic Trading entered into a definitive merger agreement with Genco under which Genco will acquire Baltic Trading in a stock-for-stock transaction.
Under the terms of the agreement, Baltic Trading will become an indirect wholly-owned subsidiary of Genco, and Baltic Trading shareholders (other than Genco and its subsidiaries) will receive 0.216 shares of Genco common stock for each share of Baltic Trading common stock they own at closing.
Upon consummation of the transaction, Genco shareholders are expected to own approximately 84.5 percent, and Baltic Trading shareholders 15.5 percent of the combined company. Shares of Baltic Trading’s Class B Stock (all of which are owned by a subsidiary of Genco) will be canceled in the merger.
Genco expects to have its stock listed on the NYSE upon consummation of the transaction.