Greece: Goldenport Holdings Inc Interim Management Statement

Goldenport Holdings Inc., the international shipping company that owns and operates a fleet of container and dry bulk vessels announces yesterday the update on the trading of its fleet as of 16 May 2011 and the Interim Management Statement covering the quarter to 31 March 2011.

Operational Fleet Forward Coverage: CEO Statement:

Captain Paris Dragnis, Founder and Chief Executive Officer of the Company commented:

“We have continued the implementation of our fleet expansion strategy in 2011 by taking delivery in April and May of two of our new-building bulk carriers, namely the Post-panamax 93,000 DWT bulk carrier ‘D Skalkeas’ and the geared Supramax bulk carrier ‘Pistis’. We have also taken delivery of the second hand container vessel ‘Pos Yantian’, which purchase was agreed in the last quarter of 2010. All three vessels have been immediately earnings accretive.

“As of today, our operational fleet consists of 24 vessels, of which 11 are containers and 13 dry-bulk carriers. For our combined operational fleet of containers and dry bulk carriers we have secured strong forward coverage with 85% of the fleet available days for 2011 fixed under time charter employment, assuming earliest charter expiration. This translates into strong and visible cash flows.

“Our organic growth is set to continue during the first half of 2011, when we expect the deliveries from the shipyards of our two remaining contracted new-building vessels. Including these deliveries our operational fleet will reach 26 vessels out of which 12 will be containers and 14 will be bulk carriers. This enlarged operational fleet has a much younger profile compared to our fleet at the time of our Initial Public Offering in April 2006, providing an extended economic life of our asset base and therefore an enhanced revenue stream.

“We continue seeing benefits from our decision to focus the majority of our bulk carrier investments in the Supramax asset class. The commercial flexibility provided by this asset class, allowed recently the Supramaxes to continue outperforming the larger size vessels as Panamaxes and Capesizes.

“Our Company remains in a strong financial condition. As of 31 March 2011, our net debt was US$ 202.2 million and our net debt to book capitalisation was 42%, a moderate figure for our industry.

“Our business strategy has been that of prudent growth, and while we remain focused on safeguarding the value we have created for our shareholders, we are always alert to take advantage of accretive fleet expansion opportunities as these may occur.

“The Company’s cash reserves and the established relationships with the major international shipping banks, allow us to be able to execute our expansion strategy. In terms of bulk carriers we want to replicate the successful acquisition strategy we have applied in the 2009 and 2010 containers’ segment downturn, by acquiring favourably priced younger tonnage. In the containers’ segment which is recovering from the previous years’ lows, we shall invest more in yield play assets”.

Recent Events in Chartering Market:

Korea Line Corporation (“KLC”), a charterer of dry-bulk vessels has filed a petition with Korean courts for rehabilitation proceedings which was approved by them in February 2011. In March the Company took over the employment of the two vessels chartered to KLC and re-chartered them to other third party Charterers.

The Company has taken appropriate legal action to protect its position and has filed claims against KLC, in order to be compensated for the earlier termination of the time charter contracts. The Company continues monitoring the progress of the legal process and will provide additional information as the case develops.

First Quarter 2011, Review of Operations:

Following the delivery of three new building vessels in the last quarter of 2010, the fleet grew to 22 operational vessels in the first quarter. The expanded fleet achieved utilisation of 99.6% returning to the normal high levels of efficiency.

During the first quarter of 2011 the Company paid US$7.9 million from cash reserves and drew-down US$10.3 million of debt in relation to the third and fourth shipyard instalments for the Post Panamax bulk carrier vessel ‘D Skalkeas’ on order from Yangzijiang Shipbuilding Co Ltd., in China. The Company also paid US$3.8 million from cash reserves and drew down US$11.3 million of debt in relation to the third instalment of the vessel ‘Sofia’ on order from the COSCO (Zhousan) Shipyard Co Ltd., in China and drew-down US$7.6 million of debt in relation to the fourth shipyard instalment of the Supramax new building ‘Pisti’ on order from the COSCO (Zhousan) Shipyard Co Ltd., in China.

During this period the Company utilised restricted cash of US$5.2 million to finance the acquisition of the container vessel ‘Pos Yantian’ and used the remaining amount of US$4.9 million of restricted cash to prepay early the relevant loan by an equal amount. Including the early prepayment the Company has repaid US$13.4 million of bank debt in this period.

Following the above mentioned debt draw-downs to fund the scheduled instalments of the new building vessels being constructed, the net debt, as of 31 March 2011, was US$ 202.2 million (US$ 165.8 million as of 31 December 2010) and the net debt to book capitalisation was 42% (38% as of 31 December 2010).

Continued Fleet Renewal and Expansion:

In the context of its continued fleet renewal and expansion program, the Company has taken delivery of the following vessels:

Delivery of the vessel ‘Pisti’: On 18 April 2011 the Company took delivery of the third new-build geared bulk carrier vessel with 57,000 DWT capacity from the COSCO (Zhousan) Shipyard Co Ltd., in China. The vessel was named ‘Pisti’ and commenced its agreed one year time charter immediately following delivery, at a daily rate of US$14,250.

Delivery of the vessel ‘D Skalkeas’: On 9 May 2011, the Company took delivery of the new-build bulk carrier vessel with 93,000 DWT capacity from Yangzijiang Shipbuilding Co Ltd., in China. The vessel was named ‘D Skalkeas’ and commenced its first voyage.

Remaining new building deliveries: The Company expects to have the remaining two new-building vessels (one geared Sub-Panamax container vessel and one geared Supramax bulk carrier) delivered at the end of the second quarter. Including these deliveries the operational fleet will rise to 26 vessels.

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Source: Goldenport, May 18, 2011.