Excel Maritime Reports Third Quarter 2008 Diluted EPS of $2.70 and Declares Dividend of $0.40 per Share
ATHENS, GREECE--(MARKET WIRE)--Nov 5, 2008 -- (NYSE:EXM - News), announced today its operating and financial results for the third quarter and nine month period ended September 30, 2008.
On April 15, 2008, the Company successfully completed the acquisition of Quintana Maritime Limited, creating a combined company that operates a fleet of 47 vessels with a total carrying capacity of approximately 3.7 million DWT and an average age of approximately 8.9 years;
Third Quarter Highlights:
-- Revenues from operations increased by approximately 436% to $231.6
million in the third quarter of 2008 compared to $43.2 million in the
corresponding period in 2007. Revenues include non-cash adjustments of
approximately $84.7 million, relating to the amortization of unfavorable
time charters that were fair valued upon acquiring Quintana;
-- Net income for the quarter increased by approximately 544% to $119.2
million or $2.70 per diluted share, compared to $18.5 million or $0.93 per
diluted share in the third quarter of 2007. Net income includes a non-cash
interest-rate swap loss in the period of approximately $6.7 million
compared to a loss of $0.7 million in the third quarter of 2007;
-- Adjusted EBITDA for the quarter was approximately $107.3 million
compared to $29.5 million in the third quarter of 2007, an increase of
-- An average of 47 vessels were operated during the third quarter of
2008 earning a blended average adjusted time charter equivalent rate of
$33,804 per day compared to $29,384 per day for the third quarter of 2007;
-- As a result of the merger with Quintana which caused a reduction in
the average age of the fleet and the application of joint fleet management
processes the Company has been able to generate significant savings in
vessel operating expenses. During the third quarter of 2008 the average
vessel operating expenses per day dropped sharply to $4,499 (Panamax) and
to $4,378 (Handysize) which corresponds to savings of 28% and 20%
respectively when compared to the same period in 2007. Management believes
that maintaining low vessel operating cost levels lends strength to the
comparative advantage of the Company and intends to continue its efforts to
control expenses and deliver further synergies from the merger of Excel
-- The Company maintains its increased quarterly minimum dividend
guidance of $0.40 per share. The third quarter 2008 dividend of $0.40 per
share is payable on December 5, 2008 to shareholders of record as of
November 20, 2008.
Stamatis Molaris, President and Chief Executive Officer of Excel, stated, "The Company's strong third quarter results are underpinned by its significant time charter coverage despite the soft rate environment experienced in September. We also believe that our time charter coverage of approximately 85% for the fourth quarter 2008 and 61% for the full year 2009, provide cash flow security and insulate the Company from the challenging market conditions that we are currently experiencing mainly caused by an unprecedented credit freeze. We also pleased to report the significant reduction in our vessel operating costs as the result of the synergies created from the merger of Excel with Quintana, which enhances our profitability."
Legally binding in sunny Hamilton, Bermuda. Ane while it may be technically accurate on some planet, the headline is not representive of the situation in which they find themselves.
The QMAR fleet's addition to EXM earnings doesn't hardly from Q3 to Q4. The only difference is the addition of one cape at 36k per day and the payment required to take delivery. Actually, there are other differences. Many of the QMAR charters expire in Q4 and may be hard pressed to find any work let alone profitable work.
How do you see the QMAR fleet affecting Q4 differently than it did Q3?
Read the report people they are telling you right up front that 15% of their fleet will be idle or losing money for the fourth quarter, and 40% of their fleet will be idle or losing money in 2009 without a drastic rebound in shipping.And as for the charters they have locked in , there is no way in this economic enviroment that 100% of those contracts are going to be honored at rates 1000% above spot rates bank on it.
That is where you are seriously mistaken and why the fictitious earnings report issued by ex-Arthur Anderson auditor (remember them?) Molaris is so dangerous. You are suggesting that 20% off earnings would drop $40 million off of the quarter. It doesn't! If they lost 20% of the voyage revs, they would only have 116. The expenses are $89 million. That leaves 27 million only. More like 67 cents per share. And if you take two minutes to study EXM fleet deployments, they are looking at a huge drop, maybe more than 20%, over coming quarters. Using that BS number which includes vaporous Time Charter fair value amortization of 84,703 which represents 37% of their "revenues" is crazy. They can't pay their bills with Time Charter FV amortization. Creditors want cash.
no the Chinese stock piled for many months before the Olympics... those stock piles wonts disipate soon as the Olymics finish. ..... its all due to stock piling... the Chinese love steel.
soon production will increase, made be not as much as before, much more than now. may be Dec08 - March09 well see the dwindiling stock pile effect.
September Chinese steel production was 39.1 million tons. Down 9.1% over 07 September.
August Chinese steel production was 42.6 million tons. Up 1.3% from 07 August.
Olympics were in August. October will be off hard. 20% cuts being considered by most Chinese mills. Mittal, the world's largest steel maker, is cutting up to 30%.
No China on the WHOLE is carring on , and stoppin' nothing.
Steel production is down BECAUSE CHINA STOCK PILED IT FOR THE OLYMPICS, SO THEY COULD HAVE CLEAN FRESH AIR INSTEAD OF POLLUTION OVER BEJING! really you are so full of disinformation.
Soon those stock piles will need replacing, and are dwindling....right now.