Aries Maritime Transport Limited Announces Second Quarter 2009 Interim Financial Results

Shipping News | August 28, 2009 | View Comments

Aries Maritime Transport Limited yesterday reported its interim financial results for the three and six months ended June 30, 2009.

The following financial review discusses the results for the three and
six months ended June 30, 2009, compared with the results for the three
and six months ended June 30, 2008. On June 29, 2009, Aries completed
the sale of the Ocean Hope, a 1989-built container vessel,

to an unrelated third party for a net price of $2.3 million. This
transaction resulted in a loss on sale totalling $5.6 million, which
was recorded in the second quarter of 2009. Proceeds from the sale of
the Ocean Hope were used to repay debt under the Company’s fully
revolving credit facility. The results for this vessel are reported as
discontinued operations.(1)

(1) In June 2008, Aries completed the sale of its three oldest vessels,
the Energy 1, MSC Oslo and the Arius. The sale of these three vessels
resulted in a gain on sale of $13.6 million which was recorded in the
second quarter of 2008. The results for these vessels and related gain
on sale are reported as discontinued operations.

Second Quarter Results

Total revenues from continuing operations of $15.4 million were
recorded for the three months ended June 30, 2009, compared to total
revenues of $18.0 million recorded for the three months ended June 30,
2008. For the three month periods ended June 30, 2009 and June 30,
2008, the Company reported revenues of $13.0 million and $15.4 million,
respectively, excluding deferred revenue due to the assumption of
charters associated with certain vessel acquisitions as well as direct
expenses including commissions and voyage expenses. The decrease in
revenues is primarily attributable to lower charter rates achieved for
the MR tankers, as well as out-of-service days related to the
Nordanvind. The decrease was partially offset by an increase in the
utilization for the Saronikos Bridge. Vessel operating days for the
three months ended June 30, 2009 and 2008 were 1,001. The Company
defines operating days as the total days the vessels were in the
Company’s possession for the relevant period. Total revenue days for
the three months ended June 30, 2009, were 883 and total revenue days
for the three months ended June 30, 2008, were 947. The Company defines
revenue days as the total days the vessels were not off hire or out of
service.

Net loss from continuing operations was $2.6 million or $0.10 basic and
diluted loss per share, for the three months ended June 30, 2009,
compared to net income of $1.8 million, or $0.06 basic and diluted
income per share, recorded for the three months ended June 30, 2008.
The results for the second quarter of 2009 include a $1.2 million
non-cash gain from the change in the fair value of derivatives. The
results for the same period of 2008 include a $3.6 million non-cash
gain from the change in the fair value of derivatives.

Net loss from continuing and discontinued operations for the three
months ended June 30, 2009, was $8.2 million, or $0.29 basic and
diluted loss per share, compared to net income of $13.2 million, or
$0.46 basic and diluted income per share, recorded for the three months
ended June 30, 2008.

Adjusted EBITDA for the three months ended June 30, 2009, was $4.5
million compared to $7.4 million for the three months ended June 30,
2008. (Please refer to the Summary of Selected Data table later in this
document for a reconciliation of Adjusted EBITDA to net loss/ income.)

Jeff Parry, Chief Executive Officer, commented, “Our results for the
second quarter reflect previously announced out-of-service time for the
Nordanvind and reduced charter rates as anticipated for certain
vessels, partially offset by lower general and administrative expenses.
During this challenging global economic environment, management
continues to take proactive measures to improve the Company’s financial
position and maximize shareholder value. Specifically, we sold the
Ocean Hope, the oldest vessel in our fleet, for a net price of $2.3
million. We also entered into a non-binding letter of intent with
Grandunion, Inc., which contemplates, among other things, the
acquisition of three Capesize drybulk carriers with an approximate net
asset value of $36.0 million in exchange for 15,977,778 newly issued
shares of the Company, and a change of control of the Company’s Board
of Directors. As we maintain our focus on negotiating the definitive
agreements with Grandunion, management remains committed to
strengthening Aries’ ship operations and enhancing the Company’s future
performance.”

Six-Month Results

Total revenues of $30.9 million from continuing operations were
recorded for the six months ended June 30, 2009, compared to total
revenue of $36.7 million recorded for the six months ended June 30,
2008. For the six month periods ended June 30, 2009 and June 30, 2008,
the Company reported revenues of $25.8 million and $31.7 million,
respectively, excluding deferred revenue due to the assumption of
charters associated with certain vessel acquisitions as well as direct
expenses including commissions and voyage expenses. The decrease in
revenues is primarily attributable to lower charter rates achieved for
the fleet as well as out-of-service days related to the Nordanvind. The
decrease was partially offset by an increase in the utilization for the
Saronikos Bridge. Vessel operating days for the six months ended June
30, 2009 were 1,991 and for the six months ended June 30, 2008 were
2,002. The Company defines operating days as the total days the vessels
were in the Company’s possession for the relevant period. Total revenue
days for the six months ended June 30, 2009, were 1,771 and total
revenue days for the six months ended June 30, 2008, were 1,916. The
Company defines revenue days as the total days the vessels were not off
hire or out of service.

Net loss from continuing operations was $7.0 million or $0.25 basic and
diluted loss per share, for the six months ended June 30, 2009,
compared to a net loss of $3.3 million, or $0.12 basic and diluted loss
per share, recorded for the six months ended June 30, 2008. The results
for the second quarter of 2009 include a $1.1 million non-cash gain
from the change in the fair value of derivatives.

Net loss from continuing and discontinued operations for the six months
ended June 30, 2009, was $12.5 million, or $0.45 basic and diluted loss
per share, compared to net income of $6.3 million, or $0.22 basic and
diluted income per share, recorded for the six months ended June 30,
2008.

Adjusted EBITDA for the six months ended June 30, 2009, was $8.7
million compared to $14.9 million for the six months ended June 30,
2008. (Please refer to the Summary of Selected Data table later in this
document for a reconciliation of Adjusted EBITDA to net loss.)

Fleet Report

Aries operates a fleet of nine double-hull products tankers and two
container ships. Currently, four of the Company’s 11 vessels are
secured on period charters with established international charterers.
The charters have remaining periods ranging from several weeks to 1.3
years. Charters for two of Aries’ products tanker vessels currently
have profit-sharing components.

In June 2009, Aries completed the sale of the Ocean Hope, a 1989-built
container vessel, to an unrelated third party for a net price of $2.3
million. This transaction resulted in a loss on sale totalling $5.6
million recorded in the second quarter of 2009. Proceeds from the sale
of the Ocean Hope were used to repay debt under the Company’s fully
revolving credit facility.

The High Land and High Rider entered the spot market following early
redelivery of these vessels on July 4, 2009 and July 7, 2009,
respectively, based on the terms of their charter agreements.

The period charters for the Altius and Fortius expired in June 2009 and August 2009, respectively.

The Company received notice of redelivery for the MSC Seine in
accordance with the terms of its charter. The vessel is expected to be
redelivered in September 2009.

Source: Aries Maritime Transport Ltd.

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Aries Maritime Transport Limited Announces Second Quarter 2009 Interim Financial Results

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