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Final Results Hellenic Carriers

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					2011 Financial Results
Press Release 14 March 2012

                           HELLENIC CARRIERS REPORTS FINAL RESULTS FOR THE
                                     YEAR ENDED 31 DECEMBER 2011

Hellenic Carriers Limited, (“Hellenic” or the “Company”) (AIM: HCL), an international provider of marine
transportation services, which owns and operates through its wholly owned subsidiaries a fleet of five dry
bulk vessels that transport iron ore, grain, steel products and minor bulk cargoes, is pleased to report today
its Final Results for the year ended 31 December 2011.

The Company’s management team will be holding a conference call and webcast today, at 2pm (London),
4pm (Athens) and 10am (New York) to discuss the results.

2011 FINANCIAL

     ⇒ Revenue US$33.2 million (2010: US$57.5 million)

     ⇒ EBITDA1 US$16.9 million (2010: US$38.4 million)

     ⇒ Operating Profit US$3.6 million before non-cash items (2010: US$24.5 million)

     ⇒ Net Loss US$1.1 million excluding non-cash items (2010: US$19.1 million Net Income)

     ⇒ Non-cash impairment charge US$29.3 (2010: US$ nil)

     ⇒ Gearing ratio2 at 30.2% as of 31 December 2011 (26.5% as of 31 December 2010)

     ⇒ Total cash, including restricted cash of US$48.0 million as of 31 December 2011 (US$60.0 million,
       as of 31 December 2010)

     ⇒ Reduction of Gross debt to US$88.2 million on 31 December 2011 (US$105.3 million on 31
       December 2010) resulting in a net debt position of US$40.1 million as of 31 December 2011
       (US$45.3 million as of 31 December 2010)


2011 OPERATIONAL

     ⇒     Operation of a fleet of 5.0 vessels on average compared to 5.6 vessels in 2010

     ⇒ Net cash generated from operations US$16.7 million (2010: US$36.1 million)

     ⇒ Time Charter Equivalent rate of US$17,369 (2010: US$26,089) outperforming the average 2011
       Panamax and Supramax TC earnings (US$13,895 and US$13,792 respectively3)



Management Commentary

Hellenic Carriers is pleased to report its financial results for the year ended 31 December 2011.

Despite strong demand for dry bulk commodities, the market was subject to considerable pressure in 2011
impacted by heavy new vessel deliveries resulting in volatile freight rates.

The decrease in our Company’s revenues is mainly attributed to the lower freight rates prevailing during the
year. It is also a result of the reduction in fleet operating days after the sale of the M/V Hellenic Breeze in
August 2010.

1
   EBITDA has been calculated as follows: Operating profit + Depreciation + Depreciation of dry-docking costs + Impairment
  charge - Gain on sale of vessel - Other operating income
2
  Gearing ratio is defined as Net Debt to total capitalization (debt, net of deferred financing fees less cash and cash equivalents to
  net debt and stockholders’ equity)
3
  Clarksons’ Research Services
During the first quarter of the year, our Company benefited from the continuation of charters agreed prior to
the market downturn in Q4 2008 at very high rates. Following the expiration of these agreements, the
vessels were traded in the spot market avoiding long term commitments at low rates. Our strategy moving
forward is to secure period employment for the vessels when the freight market improves.

Our operating fleet will expand in 2013 when the two new building Kamsarmax vessels on order since 2010
will be delivered. By that time, we expect dry bulk fundamentals to improve, as the glut of new tonnage that
is currently being delivered will have subsided and will allow the underlying supply/demand balance to
tighten, thereby helping the freight market.

However, in light of current market conditions, our company has already taken steps to reinforce further its
liquidity position. As a result of an agreement reached with the lenders, the debt repayment obligations
have been reduced for the next 2 years and the tenor of one of the loan facilities extended for 3 years. All
necessary waivers in respect of the financial covenants until 2014 have also been obtained. Furthermore,
our Board of Directors recommended that dividend payments for the year 2011 be suspended in order to
optimize the use of cash when market opportunities arise.

Time charter rates have continued to be at depressed levels in 2012 and we expect 2012 to be a
challenging year for the dry bulk sector, mainly due to fleet supply issues. However, looking ahead, we are
optimistic about the longer term dry bulk fundamentals as economic growth in the developing countries
remains robust. This trend is expected to continue thereby increasing the need for transportation of iron
ore, coal and grain. Equally important is the urbanization growth in the Far East, which is on-going and will
result in an increase in infrastructure projects and higher demand for energy resources. Another factor
which should be taken into account is that approximately 17% or 100mdwt of the existing global dry-bulk
fleet is over-aged and will eventually be scrapped, thereby alleviating the oversupply within the next two
years. We expect that during the same period the pace of new building orders will remain at low levels due
to limited financing resources.

The combination of the above mentioned factors, sustainable demand from the emerging economies,
increased scrapping and limited new building activity, contribute to our positive long term outlook of the dry
bulk market.
Fleet Developments

Fleet details as at 31 December 2011:

                                               Operating Fleet
                                                                                                   Carrying
                                                                                         Year
        Vessel               Type                            Yard                                  Capacity
                                                                                         Built
                                                                                                    (dwt)
 M/V Hellenic Wind        Panamax      Tsuneishi Shipbuilding, Japan                     1997         73,981

 M/V Konstantinos D       Supramax     Mitsui Engineering & Shipbuilding, Japan          2000         50,326

 M/V Hellenic Horizon     Handymax    Halla Engineering & Heavy Industries, Korea        1995         44,809

 M/V Hellenic Sky         Panamax      Sasebo Heavy Industries, Japan                    1994         68,591

 M/V Hellenic Sea         Panamax     Jiangnan Shipyard, China                           1991         65,434

 Total Operating Fleet: 5 Vessels                                                                    303,141


In June 2010, the Company, through two wholly owned subsidiaries entered into shipbuilding contracts with
Zhejiang Ouhua Shipbuilding Co. Ltd. for the construction of two Kamsarmax bulk carriers. The contract
price for each vessel is US$34.0 million and the cost of additions to each vessel’s initial specification
amounts to US$0.2 million. Out of this amount 40% of the contract price was paid in 2010 and the
remaining 60% is payable upon delivery of the vessels in 2013. In March 2011, the respective subsidiaries
signed loan facility agreements with a major European financial institution securing financing of up to 65%
of each vessel’s market value upon delivery or maximum US$22.1 million per vessel. Such amounts shall
be drawn down upon delivery of each new building vessel from the shipyard. The Company has no further
financial commitments to the shipyard until delivery of the vessels in 2013.
                                                      Vessels on Order
                                                                         Scheduled
         Type                                 Yard                               (1)    Carrying Capacity (dwt)
                                                                         Delivery
 Kamsarmax              Zhejiang Ouhua Shipbuilding Co. Ltd., China      January 2013                   82,000
 Kamsarmax              Zhejiang Ouhua Shipbuilding Co. Ltd., China        March 2013                   82,000

 Total Vessels on Order: 2 Vessels                                                                     164,000

 (1)
       As per shipbuilding contract


Following the delivery of the two Kamsarmax vessels, the Company will own and operate through its
subsidiaries a diversified fleet of seven dry bulk carriers comprising two Kamsarmaxes, three Panamaxes,
one Supramax and one Handymax with an aggregate carrying capacity of about 467,141 dwt and a
weighted average age of 12.5 years (as of 31 March 2013).




Fleet Deployment

The dry bulk freight market deteriorated in 2011 with the BDI moving between 1,043 points and 2,173
points, averaging at 1,549 points compared to 2,758 points in 2010. This was mainly a result of a 14%
increase in tonnage supply during 2011, followed by a 16% net increase in 2010. Although sea borne trade
demand continued to grow in 2011, supported mainly by the need for raw materials by the developing
countries, it could not fully absorb the massive inflow of new ships during the past two years. In this
environment, during the first quarter of the year, Hellenic benefited from the continuation of time charters
agreed prior to the market downturn in Q4 2008 at favourable rates compared to the prevailing market
rates during the year in review.

In particular, the M/V Hellenic Wind continued her employment under a 3-year time charter agreement at a
gross daily rate of US$54,000. This charter commenced in May 2008 and was terminated in April 2011,
one month earlier than the contractually agreed redelivery date. However, charterers Messrs Hanjin
Shipping Co Ltd. compensated the Owners for the early redelivery of the vessel.

The M/V Konstantinos D was employed under a time charter agreement with Korea Line Corp., at a gross
daily hire rate of US$35,000. This charter was due to expire on 25 January 2011; however the vessel was
redelivered to her Owners on 14 January 2011. The charterers fulfilled all their financial obligations towards
Owners (including payment of hire revenue and compensation for the early redelivery) prior to their
application for rehabilitation in Korea.

During the first quarter of the year, the M/V Hellenic Sky was earning US$22,000 per day gross on the
basis of a time charter agreement with Cargill International S.A. for a period of minimum five to about seven
months. The vessel was redelivered to her Owners on 9 March 2011. Following redelivery from Cargill, the
M/V Hellenic Sky was fixed under a time charter agreement with Bunge S.A. for a period of six to eight
months at a gross daily rate of US$16,000. The charter commenced on 9 March 2011 and the vessel was
redelivered to her Owners on 16 October 2011. As from 16 October 2011 the vessel has been employed in
the spot market.

During the same period the M/V Hellenic Sea was employed under time charter for nine to eleven months
to SetSea S.p.A. at a gross daily rate of US$23,300. This charter was terminated on 28 March 2011, a
month earlier than the agreed redelivery date. The charterers compensated the Owners by paying the
relevant amount of damages for early redelivery.

Following the expiration of the above agreements, the Company opted to employ some of the vessels in
the spot market for the performance of single or consecutive laden legs or under short term time charter
agreements, avoiding long term commitments at depressed market levels. In some cases repositioning of
the vessels was conducted in order to achieve more attractive time charter rates. Fleet days spent for
repositioning of the vessels totaled to about 60 days.
Following her redelivery from Hanjin Shipping Co Ltd., the M/V Hellenic Wind traded under a short-term
time charter agreement with Sangamon Transportation Group at a daily gross rate of US$24,500 from
arrival in South America plus US$430,000 bonus in respect of bunkers cost for the ballast leg. Upon
termination of this fixture on 1 August 2011, the vessel was delivered to her next charterers Transgrain
Shipping B.V. for the execution of two laden legs at a gross daily rate of US$11,750 for the first 100 days
and US$12,500 thereafter. She completed her employment on 18 November 2011 and proceeded for her
scheduled special survey and dry docking in China which she completed on 30th December 2011.
Following completion of the special survey, the vessel ballasted towards the US Gulf and was fixed on 12
February 2012 under a time charter agreement for the period of about four to maximum six months at a
gross daily rate of US$10,000 plus a ballast bonus of US$660,000.

Following redelivery from Korea Line Corp., the M/V Konstantinos D was fixed under a time charter
agreement with Bunge S.A. for a period of four to seven months at a gross daily rate of US$9,250 for the
first 40 days, increasing to US$14,200 per day for the remaining period. This charter commenced on 14
January 2011 and was terminated on 29 July 2011 and averaged at a gross rate of US$13,189 per day.
She was directly delivered to her next charterers Western Bulk Pte Ltd. for the performance of two, optional
three, laden legs earning US$14,250 per day gross for the first two legs, and US$14,500 for the optional
third leg. Upon termination of the above charter agreement on 18 November 2011, the vessel was fixed
under a time charter agreement with Marimed Shipping Inc for a period of about four to maximum six
months at a gross daily rate of US$15,000. This charter came to end on 3 March 2012 and the vessel is
now trading in the spot market.

During 2011, the M/V Hellenic Horizon traded in the spot market performing short voyages and time charter
trips, mainly in the Atlantic basin.

With respect to the trading activity of M/V Hellenic Sea, following her redelivery from Setsea S.p.A the
vessel was employed under short term time charters and on 29 October 2011 was delivered to
Swissmarine Services S.A. to perform two optional three laden legs at a gross daily rate of US$15,000 from
arrival of the vessel in Colombia plus US$500,000 bonus in respect of bunkers cost for the ballast leg. The
option for the third leg was not exercised, the charter was terminated on 6 January 2012 and the vessel is
trading in the spot market since.

The fleet utilisation during the year remained at 98.3% taking into account 23 idle days for the fleet.

Taking into consideration the operating fleet and the currently effective time charter agreement of the M/V
Hellenic Wind, the earlier expiration date of which is 7 June 2012, the estimated time charter coverage
stands at 37.7% for the first half of 2012 and at 18.7% until year end. The remaining fleet is currently
trading in the spot market.

Full Year 2011 Results

Selected Financial Data:
 (US$ in 000’s except per share data)                                       2011                    2010

 Revenue                                                                  33,186                  57,531
 EBITDA (1)                                                               16,884                  38,448


 Operating (loss)/ profit                                                (25,664)                 32,945
 Non-cash Impairment loss                                                (29,282)                      -
 Non-cash Gain on sale of vessel                                                -                  8,451
 Operating profit excluding non-cash items                                  3,618                 24,494

 Net (Loss ) / Profit excluding non-cash items                            (1,085)                 19,085
 Net (Loss ) / Profit                                                    (30,367)                 27,536
 Weighted average shares (basic & diluted)                                           45,616,851                  45,616,851
 (Loss) / Earnings per share (basic & diluted)                                            (0.67)                       0.60

 Total assets                                                                            188,419                    241,747
 Long-term debt, net of unamortised arrangement fees                                      88,152                    105,314
 Total equity                                                                             92,846                    125,594

 Cash flows provided by operating activities                                               16,689                     36,077
 Cash flows used in investing activities                                                  (1,532)                    (5,771)
 Cash flows used in financing activities                                                 (30,086)                   (42,493)
 (1)
       EBITDA has been calculated as follows: Operating profit + Depreciation + Depreciation of dry-docking costs + Impairment
       charge - Gain on sale of vessel - Other operating income



For the year ended 31 December 2011, Hellenic reported total revenues of to US$33.2 million compared to
US$57.5 million for the same period of 2010. The decrease in revenues is mainly attributed to the
depressed dry bulk freight rates prevailing during the year. We note that in 2011 the Baltic Dry Index (BDI)
averaged at 1,549 points compared to 2,758 points in 2010, a decrease of 43.8%. The reduced revenue
stream is also attributed to the decrease in fleet operating days for the twelve months of 2011 due to sale
of the M/V Hellenic Breeze in August 2010.

Operating loss amounted to US$25.7 million for the year ended 31 December 2011 compared to an
operating profit of US$32.9 million for the same period of 2010. The operating loss figure for the year
ended 31 December 2011 included the non-cash impairment charge of US$29.3 million. As a result of the
significant drop in asset values an impairment indication was identified and the relevant tests were
performed in order to determine the vessels’ recoverable amounts. As a conclusion the book values of
three vessels were adjusted to their recoverable amounts and an impairment charge of US$29.3 million
was recorded. In 2010, a gain of US$8.5 million resulting from the sale of M/V Hellenic Breeze was also
recorded as a non-cash item.

Excluding the above mentioned non-cash items, Hellenic reported for the year ended 31 December
2011 and 2010 an operating profit of US$3.6 million and US$24.5 million, respectively.

The operating result was also affected by the depreciation and amortisation charge of the year amounting
to US$13.8 million. The depreciation and amortisation charge for 2010 amounted to US$14.5 million.

Net loss for the year ended 31 December 2011 amounted to US$30.4 million representing a loss per share
of US$0.67 calculated on 45,616,851 weighted average number of shares. Net profit for the year ended 31
December 2010 amounted to US$27.5 million representing a profit per share of US$0.60 calculated on
45,616,851 weighted average number of shares.

Excluding non-cash items, net loss for the year ended 31 December 2011 amounted to US$1.1
million, or a loss of US$0.02 per basic and diluted share. The respective net profit, excluding non-
cash items for the year ended 31 December 2010 amounted to US$19.1 million, or a profit of
US$0.42 per basic and diluted share.




Fleet Operating Data:
                                                                                             2011                       2010
 Fleet data:
 Average number of operating vessels                                                         5.0                        5.6
 Number of operating vessels at year end                                                     5.0                        5.0
 Number of vessels under construction at year end                                            2.0                        2.0
 Total dwt at year end                                                                   303,141                    303,141
 Ownership days (1)                                                                        1,825                      2,049
 Available days (2)                                                                        1,723                      1,984
 Operating days (3)                                                                        1,694                      1,821
 Fleet utilisation (4)                                                                    98.3%                      91.8%
 Average daily results (in US$):
 Time Charter Equivalent (TCE) rate (5)                                             17,369                      26,089
 Average daily vessel operating expenses (6)                                         5,456                       4,934


    (1)     Ownership days are the cumulative days in a period during which each vessel is owned by the respective vessel
            owning company.
    (2)     Available days are ownership days less the days that the vessels are at scheduled off-hire for maintenance or vessel
            repositioning.
    (3)     Operating days are the available days less all unforeseen off-hires.
    (4)     Fleet utilisation is measured by dividing the vessels’ operating days by the vessels’ available days.
    (5)     TCE is defined as vessels’ total revenues less voyage expenses divided by the number of the available days for the
            period.
    (6)     Average daily vessel operating expenses is defined as vessel operating expenses divided by ownership days.



During 2011 the Company, through its subsidiaries, operated 5.0 vessels which earned on average
US$17,369 per day compared to 5.6 vessels and average earnings of US$26.089 per day in 2010. We
note that Panamax and Supramax average time charter rates for the year ended 31 December 2011 were
reported at US$13,895 and US$13,792, respectively compared to US$24,995 and US$21,867 for the same
period of in 2010.

Earnings before Tax, Interest, Depreciation and Amortisation (EBITDA) was reported at US$16.9 million for
the twelve months ended 31 December 2011 compared to US$38.4 million for the same period of in 2010.

The Company’s general and administrative expenses for the twelve months of 2011 were approximately
US$1.8 million, in line with the expenses charged in the same period of 2010.

Vessel operating expenses decreased by US$0.1 million to a total of US$10.0 million, however daily
operating expenses increased to US$5,456 from US$4,934. This increase is partly attributed to higher crew
costs and lubricant expenses and higher supply costs for the vessel’s trading in the Atlantic basin.


Debt / Financing Activities & Capitalisation

Debt as of 31 December 2011 amounted to US$88.2 million compared to US$105.3 million as of 31
December 2010. Repayment of long-term debt during the twelve months of 2011 totaled to US$17.2
million. In order to maintain sufficient liquidity Hellenic and its subsidiaries reached an agreement with one
lender to lighten up their debt repayment schedule for the next two years. An earnings recapture clause
has been agreed based on which part of the excess earnings generated by the vessels will be paid to the
lending bank commencing from financial year 2012.


Furthermore, as of 31 December 2011, Hellenic and its subsidiaries have obtained the appropriate waivers
from their lenders.

Restricted cash reported at 31 December 2011 was US$4.0 million. Out of this amount, US$0.6 million
represents funds held in retention account for the repayment of the next debt instalment and interest due
under one of the existing loan agreements. The amount of US$3.4 million is retained against issuance of a
Bank Guarantee of US$3.1 million provided as security to Setsea SpA, the former charterers of the vessel
M/V Hellenic Sea, pending the outcome of arbitration proceedings already commenced in London between
Owners and Charterers on the occasion of vessel’s grounding in the Amazon River in July 2010. Input from
legal advisors is supportive to Owners’ position, therefore, as of date, the Company has not recorded a
provision in the financial statements.

As of 31 December 2011 debt (debt, net of deferred financing fees) to total capitalisation (debt and
stockholders’ equity) amounted to 48.7% compared to 45.6% in 2010. Net debt (debt less cash and cash
equivalents) to total capitalisation amounted to 30.2% on 31 December 2011 compared to 26.5% on 31
December 2010. The respective increase is a result of the impairment charge recorded in 2011.

Total cash, including restricted cash amounted to US$48.0 million and US$60.0 million as of 31 December
2011 and 31 December 2010, respectively.

Post balance sheet events

In February 2012, the Company and its subsidiaries agreed with the second lender to enter into an
agreement for the restructuring of the repayment schedule for the next two years and the extension of the
tenor by three more years. An earnings recapture clause has been agreed based on which part of the
excess earnings generated by the vessels financed under this loan facility agreement during each year,
commencing from financial year 2012 and until 31 December 2013, will be paid to the lending bank.

Following the restructuring of the loan facilities with both existing lenders, the scheduled debt repayments
falling due in 2012 have been reduced to US$6.3 million. In addition, the main financial covenants have
been waived until 1 January 2014.


Dividend

In order to reinforce the Company’s liquidity and optimize the use of cash when market opportunities arise,
the Directors of the Company recommended that dividend payment for the year 2011 be suspended.


Conference Call details

Participants should dial into the call 10 minutes prior to the scheduled time using the following numbers:
0800-953-0329 (UK Toll Free Dial-in), 00800-4413-1378 (Greece Toll Free Dial-in), 1-866-819-7111 (U.S.
Toll Free Dial-in), or +44 (0)1452-542-301 (Standard International Dial-in). Please quote “Hellenic
Carriers”.


A telephonic replay of the conference call will be available until 21 March 2012 by dialling 0800-953-1533
(UK Toll Free Dial-in), 1-866-247-4222 (US Toll Free Dial-in), or +44 (0)1452-550-000 (Standard
International Dial-in). Access Code: 36347958#


Slides and audio webcast:
There will also be a live and then archived webcast of the conference call, accessible through the Hellenic
Carriers website (www.hellenic-carriers.com). Participants to the live webcast should register on the
website approximately 10 minutes prior to the start of the webcast.




For further information please contact:

Hellenic Carriers Limited
Fotini Karamanli, Chief Executive Officer
Elpida Kyriakopoulou, Chief Financial Officer
E-mail: info@hellenic-carriers.com                       +30 210 455 8900

Panmure Gordon (UK) Limited
Andrew Godber                                            +44 (0) 20 7459 3600

Capital Link
Nicolas Bornozis                                         +1 212 661 7566 (New York)
Eleni Theodoropoulou                                     +44 (0) 20 3206 1320 (London)
E-mail: helleniccarriers@capitallink.com

Further Information – Notes to Editors


About Hellenic Carriers Limited
Hellenic Carriers Limited manages through Hellenic Shipmanagement Corp. a fleet of dry bulk vessels that
transport iron ore, coal, grain, steel products, cement, alumina, and other dry bulk cargoes worldwide. The
fleet consists of five vessels, comprising three Panamaxes, one Supramax and one Handymax with an
aggregate carrying capacity of 303,141 dwt and a weighted average date of 16.4 years plus two new
building vessels currently on order, both Kamsarmaxes with an aggregate carrying capacity of about
164,000 dwt.

Following the delivery of the two Kamsarmax vessels, the Company will manage through Hellenic
Shipmanagement Corp. a fleet of seven dry bulk carriers comprising two Kamsarmaxes, three Panamaxes,
one Supramax and one Handymax with an aggregate carrying capacity of about 467,141 dwt and a
weighted average age of 12.5 years (as of 31 March 2013).
Hellenic Carriers is listed on the AIM of the London Stock Exchange under ticker HCL.
CONSOLIDATED INCOME STATEMENT
For the year ended 31 December 2011


                                                     31 December
                                                    2011                2010

                                                US$’000             US$’000

 Revenue                                          33,186              57,531

 Expenses and other income
 Voyage expenses                                 (3,258)              (5,770)
 Vessel operating expenses                       (9,957)             (10,109)
 Management fees - related party                 (1,278)              (1,394)
 Depreciation                                   (11,873)             (12,508)
 Depreciation of dry-docking costs               (1,927)              (2,039)
 Impairment loss                                (29,282)                    -
 Gain on sale of vessel                                -                8,451
 General and administrative expenses             (1,809)              (1,810)
 Other operating income                              534                  593
 Operating (loss) / profit                      (25,664)               32,945

 Finance expense                                 (5,194)              (6,045)
 Finance income                                      480                  672
 Foreign currency gain / (loss), net                  11                 (36)
                                                 (4,703)              (5,409)
 (Loss) / Profit for the year                   (30,367)               27,536

 (Loss) / Earnings per share (US$):
 Basic and diluted (LPS) / EPS for the year        (0.67)                0.60
 Weighted average number of shares            45,616,851           45,616,851
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the year ended 31 December 2011



                                                        31 December
                                                       2011              2010
                                                    US$’000           US$’000

 (Loss) / Profit for the year                       (30,367)           27,536
 Net gain / (loss) on cash flow hedges                 1,637            (488)
 Total comprehensive (loss) / income for the year   (28,730)           27,048
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 31 December 2011



                                                                  31 December
                                                                 2011              2010
                                                              US$’000           US$’000
 ASSETS
 Non-current assets
 Vessels, net                                                 105,014           146,491
 Vessels under construction                                    27,842            27,396
 Deferred charges                                                 714                 -
 Office furniture and equipment                                     6                 8
                                                              133,576           173,895
 Current assets
 Inventories                                                    2,237               634
 Trade receivables, net                                           945               418
 Claims receivable                                                239             3,772
 Available for sale investments, net of impairment                  -                 -
 Due from related parties                                       2,964             2,496
 Prepaid expenses and other assets                                420               506
 Restricted cash                                                3,974             1,033
 Cash and cash equivalents                                     44,064            58,993
                                                               54,843            67,852
 TOTAL ASSETS                                                 188,419           241,747

 EQUITY AND LIABILITIES
 Shareholders’ equity
 Issued share capital                                               46                46
 Share premium                                                 54,355            54,355
 Capital contributions                                         10,826            10,826
 Other reserves                                                (2,959)           (4,596)
 Retained earnings                                             30,578            64,963
 Total equity                                                  92,846           125,594

 Non-current liabilities
 Long-term debt                                                79,150            88,278
 Other non-current financial liabilities                        1,265             2,507
                                                               80,415            90,785
 Current liabilities
 Trade payables                                                 2,593             2,529
 Current portion of long-term debt                              9,002            17,036
 Current portion of other non-current financial liabilities     1,694             2,089
 Accrued liabilities and other payables                         1,790             1,709
 Deferred revenue                                                  79             2,005
                                                               15,158            25,368
 Total Liabilities                                             95,573           116,153
 TOTAL EQUITY AND LIABILITIES                                 188,419           241,747
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the year ended 31 December 2011


        .

                                                               Issued share    Share        Capital           Other      Retained     Total
                                      Number of    Par value      capital     premium    contributions       reserves    earnings     equity
                                       shares        US$         US$'000      US$'000      US$'000           US$'000     US$'000     US$'000

As at 1 January 2010                  45,616,851       0.001             46     54,355          10,826         (4,108)     40,636     101,755
Profit for the year
                                               -           -              -          -                   -           -     27,536      27,536
Other comprehensive income
                                               -           -              -          -                   -      (488)            -      (488)
Total comprehensive income
                                               -           -              -          -                   -      (488)      27,536      27,048

Dividends to equity shareholders
                                               -           -              -          -               -               -     (3,209)     (3,209)
At 31 December 2010                   45,616,851       0.001             46     54,355          10,826         (4,596)     64,963     125,594

Loss for the year                              -           -              -          -                   -          -     (30,367)   (30,367)
Other comprehensive income                     -           -              -          -                   -      1,637            -      1,637
Total comprehensive loss                       -           -              -          -                   -      1,637     (30,367)   (28,730)

Dividends to equity shareholders
                                               -           -              -          -               -               -     (4,018)    (4,018)
At 31 December 2011                   45,616,851       0.001             46     54,355          10,826         (2,959)     30,578     92,846
CONSOLIDATED STATEMENT OF CASH FLOWS
For the year ended 31 December 2011


                                                                                                       31 December
                                                                                                      2011            2010
                                                                                                   US$’000         US$’000
Operating activities
(Loss) / Profit for the year                                                                       (30,367)         27,536
Adjustments to reconcile (loss)/profit to net cash flows:
Depreciation                                                                                        11,873          12,508
Depreciation of dry-docking costs                                                                    1,927            2,039
Impairment loss                                                                                     29,282                -
Gain on sale of vessel                                                                                   -          (8,451)
Finance expense                                                                                      5,194            6,045
Finance income                                                                                       (480)            (672)
                                                                                                    17,429          39,005

Increase in inventories                                                                             (1,603)           (185)
Decrease / (Increase) in trade receivables, claims receivable, prepaid expenses and other assets      3,054         (2,989)
Increase in due from related parties                                                                  (468)              (3)
Increase in trade payables, accrued liabilities and other payables                                      203             692
Decrease in deferred revenue                                                                        (1,926)           (443)
Net cash flows provided by operating activities                                                      16,689         36,077

Investing activities
Advances for vessels under construction                                                               (446)        (27,396)
Dry-docking costs                                                                                   (1,601)         (2,217)
Proceeds from sale of vessels                                                                              -         23,092
Office furniture and equipment                                                                           (2)              -
Interest received                                                                                       517             750
Net cash flows used in investing activities                                                         (1,532)         (5,771)

Financing activities
Repayment of long-term debt                                                                        (17,170)        (32,560)
Borrowing cost for vessels under construction                                                         (714)               -
Restricted cash                                                                                     (2,941)           (773)
Interest paid                                                                                       (5,243)         (5,951)
Dividends paid to equity shareholders                                                               (4,018)         (3,209)
Net cash flows used in financing activities                                                        (30,086)        (42,493)
Net decrease in cash and cash equivalents                                                          (14,929)        (12,187)
Cash and cash equivalents at 1 January                                                               58,993          71,180
Cash and cash equivalents at 31 December                                                             44,064          58,993

				
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