Pioneer Marine a leading shipowner and global drybulk handysize transportation service provider announced its financial and operating results for the quarter ended March 31, 2021.
Jim Papoulis, Chief Executive Officer commented: “2020 served as a good reminder that shipping performs a profoundly needed service and remains the backbone of world trade. Although the past year was marked by difficult economic conditions resulting from the COVID-19 pandemic, the beginning of 2021 was better than expected in terms of increasing demand for commodities and significantly higher assets prices.”
“Pioneer continued with positive results, during first quarter, reporting Adjusted Net Income of $1.1 million, TCE Revenues of $10.7 million and Adjusted EBITDA of $3.4 million. The Dry Bulk market is currently being shaped by strong demand and slowing growth in the active fleet – the right conditions for rising freight rates. These favorable trends seem likely to continue within the year and looking ahead, we expect drybulk rates in 2021 to remain at very good levels due to the overall market strength as well as other important indicators. Our first quarter 2021 fixtures were influenced by the strong rebound in coal volumes and overall rebound in supply, thus our Q1 results reflect the rapidly improving market conditions. The demand outlook for the following months looks promising as minor bulk and grain volumes are expected to grow and this paves the way for a positive outlook.
Financial Review: Three months ended March 31, 2021
The reported results for the three-month period ended March 31, 2021 amount to $0.2 million net income as compared to $0.9 million net loss for the respective previous year period. Net income for the first quarter of 2021 was affected by the non–cash impairment charge of $0.5 million relating to the held for sale classification exercise performed according to US GAAP following the agreements entered for vessels disposals, as well as the loss of $0.2 million on disposal. Excluding these one-off charges and drydock cost of M/V Kite Bay $0.3 million the adjusted net income for the first quarter of 2021 amounts
to $1.1 million.
Adjusted EBITDA totalled $2.4 million for the first quarter 2021, increased by $0.2 million as compared to the first quarter of 2020. Despite the reduced fleet (owned and managed) the recovering from the pandemic global economy has led to a surge in the demand for commodities and significantly higher freight rates. Consequently, the TCE rate of $8,572 achieved in the first quarter of 2021 is 28% above the TCE rate achieved during the same period in 2020.
OPEX per day increased to $4,448 for the three months ended March 31, 2021 compared to $4,337 during the same period in 2020. The upward variation is mainly attributable to the additional costs incurred in the preparation of vessels disposals.
General and administrative expenses are reduced by $0.2 million for the three months ended March 31, 2021 or 23.4% as compared to the respective prior year period. Per day amount for the same period increased by 8.7% due to reduced commercial management vessels.
Loss on vessel disposal for the first quarter of 2021 amounted to $0.2 million and relates to disposals mentioned under “Fleet Developments” section. The comparative loss of $0.08 million relates to the sale of M/V Calm Bay in the same period of 2020.
Dry docking expense of $0.3 million relates to the special survey of M/V Kite Bay which was completed within April 2021.
Depreciation cost amounts to $1.6 million and is impacted downwards due to fleet reduction. Interest and finance cost of $0.5 million was decreased by 48% compared to prior year same period, mainly due to the significantly reduced loan balances following vessels disposals and reduced Libor rates.
Cash Flow Review: Three months ended March 31, 2021.
Cash and cash equivalent, including restricted cash increased by $5.1 million as at March 31, 2021 and amounted to $30.5 million as compared to $25.4 million as at December 31, 2020.
The increase is attributable to cash used in financing activities of $13.6 million partially offset with $2.8 million by cash provided by operating activities and $15.9 million cash provided by investing activities.
Cash flow activities highlights during the period include:
$15.9 million cash inflow from vessels disposal completed within the period and
$13.6 million repayments and prepayments of loans subsequently to vessels disposals