Dated: September 9, 2021
|
By:
|
/s/ Andreas Michalopoulos
|
Andreas Michalopoulos
|
||
Chief Executive Officer
|
• |
Ownership days. We define ownership days as
the aggregate number of days in a period during which each vessel in our fleet has been owned by us. Ownership days are an indicator of the size of our fleet over a period and affect both the amount of revenues and the amount of expenses
that we record during a period.
|
• |
Available days. We define available days as
the number of our ownership days less the aggregate number of days that our vessels are off-hire due to scheduled repairs or repairs under guarantee, vessel upgrades or special surveys, including the aggregate amount of time that we spend
positioning our vessels for such events. The shipping industry uses available days to measure the number of days in a period during which vessels should be capable of generating revenues.
|
• |
Operating days, including ballast leg. We
define operating days, including ballast leg, as the number of available days in a period less the aggregate number of days that our vessels are off-hire. The specific calculation counts as on-hire the days of the ballast leg of the spot
voyages, as long as a charter party is in place. The shipping industry uses operating days to measure the aggregate number of days in a period during which vessels actually generate revenues.
|
• |
Time Charter Equivalent (TCE) rates. We
define TCE rates as our voyage and time charter revenues, less voyage expenses during a period divided by the number of our available days during the period, which is consistent with industry standards. Voyage expenses include port
charges, bunker (fuel) expenses, canal charges and commissions. TCE is a non-GAAP measure. TCE rate is a standard shipping industry performance measure used primarily to compare daily earnings generated by vessels despite changes in the
mix of charter types (i.e., voyage (spot) charters, time charters, and bareboat charters).
|
• |
Daily Operating Expenses. We define daily
operating expenses as total vessel operating expenses, which include crew wages and related costs, the cost of insurance and vessel registry, expenses relating to repairs and maintenance, the costs of spares and consumable stores,
lubricant costs, tonnage taxes, regulatory fees, environmental costs, lay-up expenses and other miscellaneous expenses divided by total ownership days for the relevant period.
|
For the six months ended June 30,
|
||||||||
2021
|
2020
|
|||||||
Ownership days
|
905
|
885
|
||||||
Available days
|
865
|
885
|
||||||
Operating days, including ballast leg
|
705
|
801
|
||||||
Fleet utilization
|
81.5
|
%
|
90.5
|
%
|
||||
Time charter equivalent (TCE) rate
|
$
|
8,667
|
$
|
23,806
|
||||
Daily operating expenses
|
$
|
6,386
|
$
|
7,141
|
||||
For the six months ended June 30,
|
||||||||
2021
|
2020
|
|||||||
(in thousands of U.S. dollars, except
for available days and TCE rate)
|
||||||||
Voyage and time charter revenues
|
$
|
17,513
|
$
|
29,535
|
||||
Less: voyage expenses
|
(10,016
|
)
|
(8,467
|
)
|
||||
Time charter equivalent revenues
|
$
|
7,497
|
$
|
21,068
|
||||
Available days
|
865
|
885
|
||||||
Time charter equivalent (TCE) rate
|
$
|
8,667
|
$
|
23,806
|
• |
the duration of our charters;
|
• |
our decisions relating to vessel acquisitions and disposals;
|
• |
the amount of time that we spend positioning our vessels;
|
• |
the amount of time that our vessels spend in drydock undergoing repairs;
|
• |
maintenance and upgrade work;
|
• |
the age, condition, and specifications of our vessels;
|
• |
levels of supply and demand in the shipping industry; and
|
• |
other factors affecting spot market charter rates for vessels.
|
Results of Operations (Continuing Operations)
|
For the Six Months Ended June 30,
|
|||||||||||||||
2021
|
2020
|
variation
|
% change
|
|||||||||||||
in millions of U.S. dollars
|
||||||||||||||||
Voyage and time charter revenues
|
17.5
|
25.6
|
-8.1
|
-32
|
%
|
|||||||||||
Voyage expenses
|
-10.0
|
-8.3
|
-1.7
|
20
|
%
|
|||||||||||
Vessel operating expenses
|
-5.8
|
-4.4
|
-1.4
|
32
|
%
|
|||||||||||
Depreciation
|
-3.7
|
-2.6
|
-1.1
|
42
|
%
|
|||||||||||
Management fees
|
0.0
|
-0.2
|
0.2
|
-100
|
%
|
|||||||||||
General and administrative expenses
|
-3.0
|
-4.4
|
1.4
|
-32
|
%
|
|||||||||||
Provision for credit losses
|
0.0
|
-0.1
|
0.1
|
-100
|
%
|
|||||||||||
Foreign currency losses
|
0.0
|
0.0
|
0.0
|
-
|
||||||||||||
Interest and finance costs
|
-0.9
|
-1.0
|
0.1
|
-10
|
%
|
|||||||||||
Interest income
|
0.0
|
0.0
|
0.0
|
-
|
||||||||||||
Net income / (loss) from continuing operations
|
-5.9
|
4.6
|
-10.5
|
-228
|
%
|
|||||||||||
Results of Operations (Discontinued Operations)
|
For the Six Months Ended June 30,
|
|||||||||||||||
2021
|
2020
|
variation
|
% change
|
|||||||||||||
in millions of U.S. dollars
|
||||||||||||||||
Time charter revenues
|
0.0
|
3.9
|
-3.9
|
-100
|
%
|
|||||||||||
Voyage expenses
|
0.0
|
-0.2
|
0.2
|
-100
|
%
|
|||||||||||
Vessel operating expenses
|
0.0
|
-1.9
|
1.9
|
-100
|
%
|
|||||||||||
Depreciation and amortization of deferred charges
|
0.0
|
-0.1
|
0.1
|
-100
|
%
|
|||||||||||
Management fees
|
0.0
|
-0.1
|
0.1
|
-100
|
%
|
|||||||||||
Impairment losses
|
0.0
|
-0.3
|
0.3
|
-100
|
%
|
|||||||||||
Loss on vessels' sale
|
0.0
|
0.0
|
0.0
|
-
|
||||||||||||
Other income
|
0.4
|
0.0
|
0.4
|
-
|
||||||||||||
Foreign currency gains
|
0.0
|
0.0
|
0.0
|
-
|
||||||||||||
Net income from discontinued operations
|
0.4
|
1.3
|
-0.9
|
-69
|
%
|
Page
|
|
F-2
|
|
F-3
|
|
F-3
|
|
F-4
|
|
F-5
|
|
F-6
|
ASSETS
|
June 30, 2021
|
December 31, 2020
|
||||||
CURRENT ASSETS:
|
||||||||
Cash and cash equivalents
|
$
|
|
$
|
|
||||
Accounts receivable, net of provision for credit losses (Note 4)
|
|
|
||||||
Deferred voyage expenses
|
|
|
||||||
Inventories
|
|
|
||||||
Prepaid expenses and other assets
|
|
|
||||||
Current assets from discontinued operations (Note 3)
|
|
|
||||||
Total current assets
|
|
|
||||||
FIXED ASSETS:
|
||||||||
Vessels, net (Note 6)
|
|
|
||||||
Property and equipment, net
|
|
|
||||||
Total fixed assets
|
|
|
||||||
NON-CURRENT ASSETS:
|
||||||||
Right of use asset under operating leases (Note 8)
|
|
|
||||||
Deferred charges, net
|
|
|
||||||
Other non-current assets
|
|
|
||||||
Total non-current assets
|
|
|
||||||
Total assets
|
$
|
|
$
|
|
||||
LIABILITIES AND STOCKHOLDERS' EQUITY
|
||||||||
CURRENT LIABILITIES:
|
||||||||
Current portion of long-term debt, net of unamortized deferred fin. costs (Note 7)
|
$
|
|
$
|
|
||||
Accounts payable, trade and other
|
|
|
||||||
Due to related parties (Note 5)
|
|
|
||||||
Accrued liabilities
|
|
|
||||||
Lease liabilities, current (Note 8)
|
|
|
||||||
Current liabilities from discontinued operations (Note 3)
|
|
|
||||||
Total current liabilities
|
|
|
||||||
LONG-TERM LIABILITIES:
|
||||||||
Long-term debt, net of unamortized deferred financing costs (Note 7)
|
|
|
||||||
Other liabilities, non-current
|
|
|
||||||
Long-term lease liabilities (Note 8)
|
|
|
||||||
Commitments and contingencies (Note 8)
|
|
|
||||||
Total long-term liabilities
|
|
|
||||||
STOCKHOLDERS' EQUITY:
|
||||||||
Preferred stock, $
|
|
|
||||||
Common stock, $
|
|
|
||||||
Additional paid-in capital (Note 9)
|
|
|
||||||
Other comprehensive income
|
|
|
||||||
Accumulated deficit
|
(
|
)
|
(
|
)
|
||||
Total stockholders' equity
|
|
|
||||||
Total liabilities and stockholders' equity
|
$
|
|
$
|
|
2021
|
2020
|
|||||||
REVENUES:
|
||||||||
Voyage and time charter revenues (Note 4)
|
$
|
|
$
|
|
||||
EXPENSES:
|
||||||||
Voyage expenses
|
|
|
||||||
Vessel operating expenses
|
|
|
||||||
Depreciation (Note 6)
|
|
|
||||||
Management fees
|
|
|
||||||
General and administrative expenses (Notes 5 and 9)
|
|
|
||||||
Provision for credit losses (Note 4)
|
(
|
)
|
|
|||||
Foreign currency losses
|
|
|
||||||
Operating income / (loss)
|
$
|
(
|
)
|
$
|
|
|||
OTHER INCOME / (EXPENSES)
|
||||||||
Interest and finance costs
|
(
|
)
|
(
|
)
|
||||
Interest income
|
|
|
||||||
Total other income / (expenses), net
|
$
|
(
|
)
|
$
|
(
|
)
|
||
Net income / (loss) from continuing operations
|
$
|
(
|
)
|
$
|
|
|||
Gain from repurchase of preferred shares (Notes 5 and 10)
|
$
|
|
$
|
|
||||
Net income/(loss) available to common stockholders from continuing operations
|
$
|
(
|
)
|
$
|
|
|||
Net income from discontinued operations (Note 3)
|
$
|
|
$
|
|
||||
Total net income / (loss) available to common stockholders
|
$
|
(
|
)
|
$
|
|
|||
Earnings / (Loss) per common share, basic, continuing operations (Note 10)
|
$
|
(
|
)
|
$
|
|
|||
Earnings / (Loss) per common share, diluted, continuing operations (Note 10)
|
$
|
(
|
)
|
$
|
|
|||
Earnings per common share, basic, discontinued operations (Note 10)
|
$
|
|
$
|
|
||||
Earnings per common share, diluted, discontinued operations (Note 10)
|
$
|
|
$
|
|
||||
Earnings / (Loss) per common share, basic, total (Note 10)
|
$
|
(
|
)
|
$
|
|
|||
Earnings / (Loss) per common share, diluted, total (Note 10)
|
$
|
(
|
)
|
$
|
|
|||
Weighted average number of common shares, basic (Note 10)
|
|
|
||||||
Weighted average number of common shares, diluted (Note 10)
|
|
|
2021
|
2020
|
|||||||
Net income / (loss) from continuing and discontinued operations
|
$
|
(
|
)
|
$
|
|
|||
Comprehensive income / (loss) from continuing and discontinued operations
|
$
|
(
|
)
|
$
|
|
Common Stock
|
Preferred Stock
|
Additional
|
Other
|
|||||||||||||||||||||||||||||
# of
Shares
|
Par
Value
|
# of
Shares
|
Par
Value
|
Paid-in
Capital
|
Comprehensive
Income
|
Accumulated
Deficit
|
Total
|
|||||||||||||||||||||||||
Balance, December 31, 2019
|
|
$
|
|
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
|||||||||||||||||
- Net income
|
-
|
|
-
|
|
|
|
|
|
||||||||||||||||||||||||
- Conversion of Series B preferred stock to common stock (Note 9)
|
|
|
(
|
)
|
|
(
|
)
|
|
|
|
||||||||||||||||||||||
- Repurchase and cancellation of Series B preferred stock
|
-
|
-
|
(
|
)
|
|
(
|
)
|
|
|
(
|
)
|
|||||||||||||||||||||
- Repurchase and cancellation of Series C preferred stock, including expenses
|
-
|
-
|
(
|
)
|
|
(
|
)
|
|
|
(
|
)
|
|||||||||||||||||||||
-Compensation cost on restricted stock (Note 9)
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
- Common shares re-purchase and retirement, including expenses (Note 9)
|
(
|
)
|
(
|
)
|
-
|
-
|
(
|
)
|
|
|
(
|
)
|
||||||||||||||||||||
Balance, June 30, 2020
|
|
$
|
|
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
|||||||||||||||||
Balance, December 31, 2020
|
|
$
|
|
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
|||||||||||||||||
- Net loss
|
-
|
|
-
|
|
|
|
(
|
)
|
(
|
)
|
||||||||||||||||||||||
- Compensation cost on restricted stock and stock option awards (Note 9)
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Balance, June 30, 2021
|
|
$
|
|
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
2021
|
2020
|
|||||||
Cash Flows provided by / (used in) Operating Activities:
|
||||||||
Net income /(loss)
|
$
|
(
|
)
|
$
|
|
|||
Adjustments to reconcile net income/(loss) to net cash provided by / (used in) operating activities:
|
||||||||
Depreciation and amortization of deferred charges (Notes 3 and 6)
|
|
|
||||||
Amortization of deferred financing costs
|
|
|
||||||
Impairment losses
|
|
|
||||||
Gain / (loss) on vessel's sale
|
|
|
||||||
Compensation cost on restricted stock and stock option awards (Note 9)
|
|
|
||||||
(Increase) / Decrease in:
|
||||||||
Accounts receivable
|
|
(
|
)
|
|||||
Deferred voyage expenses
|
(
|
)
|
|
|||||
Inventories
|
(
|
)
|
|
|||||
Prepaid expenses and other assets
|
|
|
||||||
Right of use asset under operating leases
|
|
(
|
)
|
|||||
Increase / (Decrease) in:
|
||||||||
Accounts payable, trade and other
|
|
(
|
)
|
|||||
Due to related parties
|
(
|
)
|
|
|||||
Accrued liabilities
|
(
|
)
|
(
|
)
|
||||
Other liabilities, non current
|
|
|
||||||
Lease liabilities under operating leases
|
(
|
)
|
|
|||||
Drydock costs
|
(
|
)
|
|
|||||
Net Cash provided by / (used in) Operating Activities
|
$
|
(
|
)
|
$
|
|
|||
Cash Flows used in Investing Activities:
|
||||||||
Vessel acquisitions and other vessels' costs
|
|
(
|
)
|
|||||
Proceeds from sale of vessels, net of expenses
|
|
|
||||||
Payments for vessels' improvements
|
(
|
)
|
|
|||||
Property and equipment additions
|
(
|
)
|
(
|
)
|
||||
Net Cash used in Investing Activities
|
$
|
(
|
)
|
$
|
(
|
)
|
||
Cash Flows provided by / (used in) Financing Activities:
|
||||||||
Proceeds from long-term bank debt (Note 7)
|
|
|
||||||
Repayments of long-term bank debt (Note 7)
|
(
|
)
|
(
|
)
|
||||
Common shares re-purchase and retirement, including expenses (Note 9)
|
|
(
|
)
|
|||||
Repurchase of Series C preferred shares, including expenses (Note 9)
|
|
(
|
)
|
|||||
Repurchase of Series B preferred shares (Note 9)
|
|
(
|
)
|
|||||
Payments of financing costs (Note 7)
|
|
(
|
)
|
|||||
Net Cash provided by / (used in) Financing Activities
|
$
|
(
|
)
|
$
|
|
|||
Net increase / (decrease) in cash, cash equivalents and restricted cash
|
$
|
(
|
)
|
$
|
|
|||
Cash, cash equivalents and restricted cash at beginning of the year
|
$
|
|
$
|
|
||||
Cash, cash equivalents and restricted cash at end of the period
|
$
|
|
$
|
|
||||
RECONCILIATION OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH
|
||||||||
Cash and cash equivalents at the end of the period
|
$
|
|
$
|
|
||||
Cash, cash equivalents and restricted cash at the end of the period
|
$
|
|
$
|
|
||||
SUPPLEMENTAL CASH FLOW INFORMATION
|
||||||||
Non-cash investing activities
|
$
|
|
$
|
|
||||
Interest payments, net of amounts capitalized
|
$
|
|
$
|
|
2.
|
Significant Accounting Policies and Recent Accounting Pronouncements
|
3.
|
Discontinued Operations
|
June 30,
2021
|
June 30,
2020
|
|||||||
Items constituting net income from discontinued operations
|
||||||||
Time-charter revenues
|
$
|
|
$
|
|
||||
Voyage expenses
|
|
(
|
)
|
|||||
Vessels' operating expenses
|
|
(
|
)
|
|||||
Depreciation and amortization of deferred charges
|
|
(
|
)
|
|||||
Management fees
|
|
(
|
)
|
|||||
Impairment losses
|
|
(
|
)
|
|||||
Loss on vessels' sale
|
|
(
|
)
|
|||||
Other income
|
|
|
||||||
Foreign currency gains
|
|
|
||||||
Net income from discontinued operations
|
|
|
Carrying amounts of major classes of assets of discontinued operations
|
June 30,
2021
|
December 31,
2020
|
||||||
Cash and cash equivalents
|
$
|
|
$
|
|
||||
Accounts receivable, trade
|
|
|
||||||
Prepaid expenses and other assets
|
|
|
||||||
Total major classes of current assets of discontinued operations
|
|
|
||||||
Carrying amounts of major classes of liabilities of discontinued operations
|
||||||||
Accounts payable, trade and other
|
|
|
||||||
Accrued liabilities
|
|
|
||||||
Total major classes of current liabilities of discontinued operations
|
|
|
4.
|
Revenues, Accounts Receivable and Provision for Credit Losses
|
Charterer
|
2021
|
2020
|
||||||
A - Tanker vessels - Continuing operations
|
|
|
%
|
|||||
B - Tanker vessels - Continuing operations
|
|
%
|
|
%
|
||||
C - Tanker vessels - Continuing operations
|
|
%
|
|
|||||
D- Tanker vessels - Continuing operations
|
|
%
|
|
5.
|
Transactions with Related Parties
|
6.
|
Vessels, net
|
|
Vessels' Cost
|
Accumulated Depreciation
|
Net Book Value
|
|||||||||
Balance, December 31, 2020
|
$
|
|
$
|
(
|
)
|
$
|
|
|||||
- Vessels' improvements
|
|
-
|
|
|||||||||
- Depreciation
|
-
|
(
|
)
|
(
|
)
|
|||||||
Balance, June 30, 2021
|
$
|
|
$
|
(
|
)
|
$
|
|
7.
|
Long-Term Debt
|
June 30, 2021
|
Current
|
Non-current
|
December 31, 2020
|
Current
|
Non-current
|
|||||||||||||||||||
Nordea Bank secured term loan
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||
Piraeus Bank secured term loan
|
|
|
|
|
|
|
||||||||||||||||||
less unamortized deferred financing costs
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||||||
Total debt, net of deferred financing costs
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
Principal Repayment
|
||||
July 1, 2021 through June 30, 2022
|
$
|
|
||
July 1, 2022 through June 30, 2023
|
|
|||
July 1, 2023 through June 30, 2024
|
|
|||
July 1, 2024 through December 31, 2024
|
|
|||
Total
|
$
|
|
8.
|
Commitments and Contingencies
|
Amount
|
||||
Year 1
|
$
|
|
||
Year 2
|
|
|||
Year 3
|
|
|||
Total
|
$
|
|
||
Less imputed interest
|
(
|
)
|
||
Present value of lease liabilities
|
$
|
|
||
Lease liabilities, current
|
|
|||
Lease liabilities, non- current
|
|
|||
Present value of lease liabilities
|
$
|
|
9.
|
Changes in Capital Accounts
|
Number of Shares
|
Weighted Average
Grant Date Price
|
|||||||
Outstanding at December 31, 2019
|
|
$
|
|
|||||
Granted
|
|
|
||||||
Vested
|
(
|
)
|
|
|||||
Forfeited or expired
|
|
|
||||||
Outstanding at June 30, 2020
|
|
$
|
|
|||||
Granted
|
|
|
||||||
Vested
|
(
|
)
|
|
|||||
Forfeited or expired
|
|
|
||||||
Outstanding at December 31, 2020
|
|
|
||||||
Granted
|
|
|
||||||
Vested
|
(
|
)
|
|
|||||
Forfeited or expired
|
|
|
||||||
Outstanding at June 30, 2021
|
|
$
|
|
10.
|
Earnings / (Loss) per Share
|
2021
|
2020
|
|||||||||||||||
Basic LPS
|
Diluted LPS
|
Basic EPS
|
Diluted EPS
|
|||||||||||||
Net income / (loss) from continuing operations
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
$
|
|
||||||
plus gain from repurchase of preferred shares
|
|
|
|
|
||||||||||||
Net income / (loss) available to common stockholders from continuing operations
|
(
|
)
|
(
|
)
|
|
|
||||||||||
Net income from discontinued operations
|
|
|
|
|
||||||||||||
Total net income / (loss) available to common stockholders
|
(
|
)
|
(
|
)
|
|
|
||||||||||
Weighted average number of common shares outstanding
|
|
|
|
|
||||||||||||
Effect of dilutive shares
|
-
|
|
-
|
|
||||||||||||
Total shares outstanding
|
|
|
|
|
||||||||||||
Earnings / (Loss) per common share, continuing operations
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
$
|
|
||||||
Earnings per common share, discontinued operations
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Earnings / (Loss) per common share, total
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
$
|
|
11.
|
Financial Instruments and Fair Value Disclosures
|
12.
|
Subsequent Events
|