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Business Highlights

Group

Significantly better dry bulk market conditions supported a much improved and positive net result in 2017

We recorded a net profit of US$3.6 million and EBITDA of US$133.8 million, a year-on-year improvement of US$90 million and US$111 million respectively

Our Handysize daily TCE (time-charter equivalent) earnings increased 25% and outperformed the market index by 15%

We took delivery of our final newbuildings and recommenced secondhand acquisitions

Our innovative combination of a share issue and private placement enabled us to grow our fleet with 5 modern ships while strengthening our balance sheet

Our year-end cash position was US$245 million with net gearing of 35%

By the year end, we had fully drawn down our remaining long tenor Japanese export credit and other committed facilities

Fleet

Our last 7 newbuildings delivered in the first half of the year

We purchased 8 modern ships at still historically low asset values

Our owned fleet expanded to 105 ships on the water by year end, and one additional vessel joined in early 2018

We continue to supplement our core fleet with short-term chartered ships with which we typically make a margin throughout the market cycle

Including chartered ships, we operated an average of 241 dry bulk vessels overall in 2017

We have covered 50% of our Handysize and 69% of our Supramax revenue days for 2018 at US$9,280 and US$11,400 per day net respectively

We have further reduced our owned vessel operating expenses to US$3,840 per day primarily through scale benefits and good cost control

Outlook & Position

The general market improvement since early 2016 is encouraging, and supply and demand fundamentals are now more positive

We are cautiously optimistic for a continued market recovery albeit with some volatility along the way

A positive global economic and commodity demand outlook and lower newbuilding deliveries bode well for dry bulk in the medium term, but threats include the potential for reduced Chinese coal and ore imports, excessive new ship ordering and higher ship operating speeds

Our healthy cash and net gearing positions enhance our ability to take advantage of opportunities and attract cargo as a strong partner

We will continue to look at good quality secondhand ship acquisition opportunities as prices are still historically low

We do not intend to order newbuildings in the medium term, and will watch technological and regulatory developments closely

Strategic Model

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