Hunter Group ASA - second quarter results 2020

Aug 27 2020

Financial highlights:

Total revenues of USD 29.62m

− Spot pool revenues of USD 14.78m

− Time charter revenues of USD 14.84m

Total operating expenses of USD 6.44m

− Vessel opex incl. insurance of USD 2.46m

− Voyage exp. and commissions of USD 0.33m

− G&A expenses of 0.33m

− USD 0.19m administrative expenses

− USD 0.06m legal expenses

− USD 0.08m non-cash expenses

EBITDA of USD 26.50m

Net profit of USD 18.84m

Average daily earnings of USD 76,340

− Avg. daily spot earnings of USD 75,0001

− Avg. daily time charter earnings of USD 77,700

Opex incl. insurance of USD 6,348 per day per vessel

Run-rate fully delivered G&A of USD ~300 per day per vessel

388 earnings and operating days

− 197 pool spot days

− 191 time charter days

− Zero downtime

USD 87m of yard payments of were made during the quarter, leaving USD 106m of remaining yard obligations as of 30 June 2020.  

Key events in Q2 2020

Received binding commitments from a syndicate of banks consisting of Danske Bank, DNB, Nordea and SEB (the “Syndicate”) for a USD 157.5m loan facility (the “Facility”)

Successfully took delivery of Hunter Disen on 5 June 2020, the fifth of seven identical VLCCs from DSME. Hunter Disen commenced it's six-month time charter ("TC") immediately following delivery from the yard

The Annual General Meeting was held on 30 April 2020, and all resolutions were passed in accordance with the previously announced proposals, including, inter alia, authorizations to i) acquire up to 10% of the Company’s own shares, and ii) issue up to 25% new shares.

Subsequent events

Successfully took delivery of Hunter Idun and Hunter Frigg on 3 July and 21 August 2020, respectively. The delivery of Hunter Frigg marks the end of the Company’s newbuilding program with all seven VLCCs having successfully been delivered and put in operation. Both vessels commenced TCs following delivery from the yard, with Hunter Frigg recently having been fixed at USD 40,000 per day for 6-8 months

Exercised call options pursuant to the sale-and-leaseback agreements with SFL and repurchased Hunter Atla and Hunter Saga for a combined amount of approx. USD 117.8m (the "Transaction"). Consequently, the two vessels are now in full ownership of the Company. Concurrently with the Transaction, the Company has utilized approx. USD 100.4m of the Facility

As of the date of this report, 83% of days in the third quarter have been booked at an average est. dayrate of USD 66,240

− 55% of Q3 spot days booked at an avg. est. dayrate of USD 49,2001

− Average Q3 TC dayrates of USD 72,100

Current pro forma cash flow breakeven of approx. USD 20,500 per day, including the planned refinancing of Hunter Laga 1) Discharge to discharge basis.


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