Rickmers Maritime records $48.4m loss for Q4 2016

Singapore-based Rickmers Maritime reported a net loss of $48.4 million for the fourth quarter of 2016, which was an improvement from the $129.6 million net loss for the fourth quarter of 2015.    Rickmers Maritime had a net loss of $48.4 million for the fourth quarter of 2016 compared to a net loss of $129.6 million loss for the fourth quarter of 2015.
   Charter revenues for the quarter totaled $14.3 million, a sharp decline from the $24.1 million for the fourth quarter of 2015.
   For the full year of 2016, Singapore-based Rickmers Maritime lost $180.1 million on charter revenues of $69.2 million. In 2015, it lost $129.2 million on charter revenues of $108.6 million.
   Rickmers Maritime is a business trust listed on the Singapore Exchange that owns a portfolio of 14 container ships ranging in size from 3,450 TEUs to 4,250 TEUs with an aggregate capacity of 57,100 TEUs. They are chartered to container liner companies including CMA CGM, Mitsui O.S.K. Lines Ltd. and Mediterranean Shipping Company.
   Rickmers Maritime said in its financial statements that its subsidiaries, known as the “Group,” were unable to make principal and interest repayments totaling $20.5 million, which were due on June 30, Sept. 30 and Dec. 30 in relation to its secured bank loans. It also said the Group had breached its loan covenants relating to its secured and unsecured bank loans.
   “These defaults gave the right to the lenders to accelerate repayment of the loans,” Rickmers Maritime said. However, the company added, “As of the date of issuance of these financial statements, neither waiver, acceleration nor enforcement of security has been provided or pursued by the lenders.”
   The company’s auditor, Pricewaterhouse Coopers, said, “We do not express an opinion on the consolidated financial statements” and that the trustee-manager does not expect the Group and Trust to have sufficient net cash inflows from operations over the next 12 months to repay bank loans and medium term notes that are due for repayment in 2017.
   Those and other factors “indicate the existence of material uncertainties that may cast significant doubt about the ability of the Group and Trust to continue as going concerns,” the auditor said.
   The company said the “depressed charter market continues to weigh on financial performance.”
   Rickmers Maritime said its fleet recorded an overall utilization rate of 86.7 percent (excluding decommissioned vessels) in the fourth quarter of 2016 compared with 98.2 percent utilization in the fourth quarter of 2015.
   Soeren Andersen, chief executive officer, said the company’s efforts to secure customers for vessels in the spot market have been hampered by the public attention on the need for its debts to be restructured.
   “Nonetheless, the fleet registered a respectable utilisation rate during the quarter. We want to improve upon this, but we must first successfully restructure the debts and remove the overhang surrounding Rickmers Maritime before we can better maximize business opportunities,” he said.
   The company said it has recently sold two ships. Net proceeds from the sale of the India Rickmers in December were applied towards the partial prepayment of a senior debt facility with the Singapore branch of Commerzbank AG. Net proceeds from the sale this month of the Kaethe C. Rickmers will be used for partial repayment as well as payment of operating costs for secured vessels under senior loan facilities extended by a syndicate of HSH Nordbank AG and DBS Bank Ltd.