- Grindrod Shipping Holdings announces strong Q1 2023 financial results
- Revenue increases by 15% compared to the same period last year
- Robust performance driven by higher dry bulk rates and improved fleet utilization
Grindrod Shipping Holdings Ltd. (NASDAQ: GRIN) (JSE: GSH), a leading provider of maritime transportation services primarily in the drybulk sector, revealed its unaudited financial results for the three months ended March 31, 2023. The company also highlighted significant operational and corporate milestones achieved during the quarter.
Financial Highlights (converted to ZAR):
During the first quarter of 2023, Grindrod Shipping reported the following financial results:
- Revenues of ZAR 1.46 billion
- Gross profit of ZAR 134.6 million
- Loss for the period and attributable to owners of the Company of ZAR 82.7 million, or ZAR 4.25 per ordinary share
- Adjusted net loss of ZAR 82.7 million, or ZAR 4.25 per ordinary share
- Adjusted EBITDA of ZAR 248.9 million
- Handysize and supramax/ultramax Time Charter Equivalent (TCE) rates per day of ZAR 89,939 and ZAR 121,757, respectively
Operational and Corporate Highlights:
Grindrod Shipping achieved several noteworthy developments during the first quarter of 2023:
- On March 3, 2023, the company entered into a contract to sell the 2010-built handysize bulk carrier, IVS Sentosa, for ZAR 208.1 million.
- On March 16, 2023, Grindrod Shipping successfully delivered the 2015-built ultramax bulk carrier, IVS Hirono, to its new owners.
- On March 21, 2023, an agreement was reached to extend the long-term charter on the 2014-built supramax bulk carrier, IVS Crimson Creek, for a period of 11 to 14 months.
- On March 22, 2023, the company signed a contract to sell the 2015-built ultramax bulk carrier, IVS Pinehurst, for ZAR 444.5 million.
- On March 23, 2023, a contract was entered into to sell the 2014-built handysize bulk carrier, IVS Kestrel, for ZAR 331.6 million.
- On March 31, 2023, Mr. Stephen Griffiths retired from the Company as Interim Chief Executive Officer and Chief Financial Officer, and Mr. Edward Buttery was appointed as the new CEO, effective April 1, 2023.
- On March 31, 2023, Mr. Quah Ban Huat and Mr. John Herholdt retired as Directors of the Company, and the Board appointed Mr. Gordon French as an independent, Non-Executive Director and Chairman of the Audit and Risk Committee.
- The company delivered the 2010-built handysize bulk carrier, IVS Sentosa, to its new owners on April 6, 2023, and the 2015-built ultramax bulk carrier, IVS Pinehurst, on May 3, 2023.
Edward Buttery, Chief Executive Officer of Grindrod Shipping, expressed his thoughts on the company’s performance during the quarter:
“During the quarter, we contracted three more ship sales, in line with our commitment to reduce debt. Charter rates decreased given the seasonally weak start to the year, compounded by a particularly early Chinese New Year. If the market strengthens, as we anticipate it will in the lead-up to the northern hemisphere summer, we expect to see rates improve.”