November 29, 2019
Hunter Group ASA - Third Quarter Results 2019
Oslo, 29 November 2019
Net profit from continuing operations came in at USD -1,586t in Q3 2019 compared to USD 632t in Q3 2018. The reduction was mainly due to costs related to the cancelled bank financing and exchange rate fluctuations.
Total operating expenses of USD 311t in Q3 2019 were in line with USD 319k in Q3 2018.
Key events in Q3 2019
The Company successfully took delivery of Hunter Atla, ahead of the original delivery schedule, hence increasing earnings capacity in Q4 by close to 40 days.
The yard completed steel cutting for H.No. 5466 and H.No. 5467, and successfully launched Hunter Saga (H.No. 5456), H.No. 5457 and Hunter Laga (H.No. 5460).
The Company entered into a USD 180m Sale and-Leaseback transaction (“SLB”) with SFL Corporation Ltd. (“SFL”) for it’s first three vessels, Hunter Atla, Hunter Laga and Hunter Saga, at highly attractive terms. Following delivery of Hunter Atla to SFL, the Company received USD 60 million, and subsequently bareboat chartered the vessel back for 5 years at a rate of USD 11,500 per day per vessel for the first 6 months. The Company has purchase options for all three vessels, retaining full flexibility. Consequently, the Company cancelled the USD 420m senior secured term loan announced in May 2019.
The Company selected Tankers International Ltd (“TI”) as commercial manager. TI will establish the world's first scrubber-fitted VLCC pool. In addition to the Hunter vessels, the pool will consist of vessels from, amongst others, Hartree Maritime Partners Ltd., International Seaways Inc., and Oak Maritime (HK) Inc. The Scrubber Pool will consist exclusively of modern scrubber-fitted VLCCs operated and maintained to the highest standards and will, combined with TI’s existing VLCC pools, represent the largest VLCC fleet in the world with more than 70 VLCCs on a fully delivered basis.
Based on the completed financing for the Company’s first three vessels, preliminary financing discussions regarding the remaining four vessels, the successful sale of NB No. 5457, as well the current market outlook, the Company does not see the need for any additional equity in order to fulfill it’s remaining capital expenditure obligations.
Erik A.S. Frydendal, CEO, firstname.lastname@example.org, Ph.: +47 957 72 947
Lars M. Brynildsrud, CFO, email@example.com, Ph.: +47 932 60 882
This information is subject to disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.