Britannia Bulk Announces 2006 Results

    LONDON, UK, April 12 /CNW/ - Britannia Bulk Plc. ("Britannia") announced
today its results for the year ended December 31, 2006.

    2006 Highlights

    -   Generated total revenues of $191.5 million and EBITDA, a non-GAAP
        measure, of $17.5 million.

    -   Operating income totaled $6.7 million and net income totaled
        $2.4 million.

    -   Completed $185 million senior secured notes offering.

    Total voyage revenues were $191.5 million for the year ended December 31,
2006 compared to $184.6 million for the year ended December 31, 2005, an
increase of 4%. The increase in revenues was largely due to an increase in the
total number of operating days offset by a weakening dayrate market from 2005
to 2006.
    Total voyage expenses for the year ended December 31, 2006 were
$71.8 million compared with $49.3 million for the year ended December 31,
2005, an increase of $22.5 million. This increase is primarily a result of an
$11.5 million increase in bunker costs and $7.6 million increase in port costs
for 2006 as compared with 2005. In addition, total vessel operating expenses
for the year ended December 31, 2006 were $12.9 million compared with
$12.1 million for the year ended December 31, 2005, an increase of $0.8
    General and administrative expenses for the year ended December 31, 2006
were $9.4 million compared to $3.7 million for the year ended December 31,
2005, an increase of $5.7 million. This increase was primarily a result in
increased salary and office costs to manage our expanding fleet, as well as
increases in travel, legal and accounting fees and expenses.
    In November 2006, Britannia completed the sale and issuance of
$185 million of senior secured notes due 2011. The notes were sold to
qualified institutional buyers under Rule 144A and Regulation S. Gross
proceeds from the offering, net of discounts, commissions and offering
expenses, were approximately $166.4 million. $140.0 million of the proceeds
were deposited in a vessel acquisition account, and the remaining funds were
used to repay all outstanding indebtedness and for general corporate purposes.
Britannia successfully filed a registration statement with the Securities and
Exchange Commission and completed its exchange offer on April 11, 2007
allowing holders to exchange their senior secured notes for identical notes
which have been registered under the Securities Act of 1933, as amended.
    Commenting on the results, Arvid Tage, Chief Executive Officer, stated,
"We are pleased with our 2006 performance. Completion of the Company's notes
issuance in 2006 provided the Company with a solid financial foundation and
the ability to expand our fleet and further grow our business. We believe the
market for our services is strong and we see continued growth opportunities
within the Baltic region market as well as new opportunities to expand our
service offerings and customer base."

    Vessel Acquisition Update

    We have acquired and taken delivery of two additional Panamax bulkers in
2007 for $28.5 million and $36.7 million, respectively. In addition, we have
contracted for the purchase of a third Panamax bulker and Handysize vessel for
$36.7 million and $10.8 million, respectively. We expect to take delivery of
the third Panamax and Handymax vessels in May 2007. Substantially all of the
acquisition costs associated with the purchase of these vessels have been
funded from the net proceeds of the sale and issuance of our senior secured

    Conference Call Announcement

    Britannia will host a conference call on Tuesday, April 17 at
4:00 p.m. GMT/11:00 a.m. EST to review these results. To participate in the
call, please dial 1-888-793-1716 for callers in North America and
1-415-537-1805 for callers elsewhere. A replay of the call will be available
and may be accessed by calling 1-888-633-8248 for callers in North America and
1-402-977-9140 for callers elsewhere. The reservation number for the replay is
21336344. Please note further that conference call materials will be made
available on our website prior to the conference call on Tuesday, April 17.

    About Britannia Bulk Plc.

    Britannia Bulk Plc is an international provider of drybulk transportation
services with a focus on transporting coal exports from the Baltic region,
primarily to northern and western Europe. Our existing fleet, excluding
vessels that we charter-in, consists of seven drybulk vessels, five barges and
four tugs.

    Except for historical information, statements made in this press release,
including those relating to acquisition or expansion opportunities, future
earnings, cash flow and capital expenditures are "forward-looking statements"
within the meaning of Section 27A of the Securities Act of 1933 and Section
21E of the Securities Act of 1934. All statements, other than statements of
historical facts, included in this press release that address activities,
events or developments that Britannia expects, believes or anticipates will or
may occur in the future are forward-looking statements. These statements are
based on certain assumptions made by Britannia based on management's
experience and perception of historical trends, current conditions, expected
future developments and other factors it believes are appropriate in the
circumstances. Such statements are subject to a number of assumptions, risks
and uncertainties, many of which are beyond Britannia's control, which may
cause Britannia's actual results to differ materially from those implied or
expressed by the forward-looking statements. These risks include, among
others, our ability to timely identify and acquire additional vessels on terms
we deem reasonable, our ability to generate cash to service our debt,
decreases in shipping volumes, including Russian coal for export, changes in
demand and rate levels for the transportation services we offer and
seasonality of the market in which we operate. The Company undertakes no
obligation to publicly update or revise any forward-looking statements.
Further information on risks and uncertainties is available in the Company's
filings with the Securities and Exchange Commission.


                                                     Year Ended December 31,
                                                  2006      2005      2004
    STATEMENT OF OPERATIONS DATA:                      (US$ in thousands)

    Total revenues                              $191,503  $184,585   $42,125

    Voyage expenses                               71,840    49,347    11,893

    Charterhire expenses                          75,723    95,937    16,322

    Commission                                     4,316     4,265     1,083

    Vessel operating expenses                     12,870    12,137     2,802

    Depreciation & amortization                   10,894     9,341     1,114

    General & administrative                       9,410     3,666       148

    Expenses to related parties                        -       131       799
    Foreign currency transactions                   (202)      120        88
    Total operating expenses                     184,851   174,944    34,249

    Operating income                               6,652     9,641     7,876
    Minority interest expense                        (72)      (28)        -
    Interest income                                1,096       272        23
    Interest expense                              (5,122)   (1,353)     (271)

    Taxes                                           (160)     (284)      (49)
    Net income                                    $2,394    $8,248    $7,579

    EBITDA (1)                                   $17,474   $18,954    $8,990

    (1) The term EBITDA represents net income plus net interest expense,
income tax expense, depreciation and amortization. EBITDA is included because
it is used by management and certain investors as a measure of operating
performance. EBITDA is used by analysts in the shipping industry as a common
performance measure to compare results across peers. Our management uses
EBITDA as a performance measure in consolidating internal financial statements
and is presented for review at our board meetings. EBITDA is also used by our
lenders in certain loan covenants. For these reasons, we believe that EBITDA
is a useful measure to present to our investors. EBITDA is not an item
recognized by the generally accepted accounting principals in the United
States of America, or U.S. GAAP, and should not be considered as an
alternative to net income, operating income or any other indicator of a
company's operating performance required by U.S. GAAP. EBITDA is not a source
of liquidity or cash flows as shown in our consolidated statement of cash
flows. The definition of EBITDA used here may not be comparable to that used
by other companies.

                                                     Year Ended December 31,
                                                  2006      2005      2004

                                                       (US$ in thousands)

    Net income                                    $2,394    $8,248    $7,579


    Interest expense (net)                         4,026     1,081       248

    Depreciation                                  10,894     9,341     1,114

    Taxes                                            160       284        49

    EBITDA                                       $17,474   $18,954    $8,990

For further information:

For further information: Fariyal Khanbabi, Chief Financial Officer,

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