The sale of the VLCCs La Madrina (1993-built) and La Prudencia (1994-built), generated $41.8 million in gross sales proceeds, all of which, after deducting the cost of sales, was used to pay down related debt in December 2012 and January 2013. The sale of these two vessels generated a book loss of $1.9 million.
In 2012, we incurred an adjusted net loss before impairment and loss on sale of assets of $33.8 million, or $0.63 loss per diluted share compared to a net loss before impairment and gain on sale of vessel in 2011 of $55.1 million or $1.19 loss per diluted share, an improvement of $21.3 million over the previous year. Much of this improvement is due to removal from operations of the two older VLCCs, to the expiry of interest rate swaps in the year, and to the renewal of the LNG carrier charter at a higher rate and improvements in the products market. Including the impairment and results of the sale of vessels, a net loss of $49.3 million was incurred, or $0.92 loss per diluted share.
Cash flow from earnings before depreciation, amortization and finance costs and before gains on vessel sales and impairment ("Adjusted EBITDA") was $117.0 million (see attached Selected Financial and Other Data). Apart from the two older VLCCs and one aframax, all vessels achieved positive EBITDA. Net proceeds before debt repayment from two vessels sold in the period totaled $40.2 million, bringing the combined total of Adjusted EBITDA and vessel sales proceeds to $157.2 million for the year.
FOURTH QUARTER 2012 RESULTS
Revenues, net of voyage expenses and commissions, were $67.5 million in the fourth quarter of 2012, an improvement of 9.1% over 2011 assisted by the firmness in rates in the products and LNG markets
Substantial improvement in operating results before impairment and loss on sale of vessels. $4.8 million operating income compared to an operating loss before impairment of $2.9 million in the fourth quarter of 2011.
On average, TEN's fleet had 47.7 vessels during the quarter. Fleet utilization remained high at nearly reached 99%, excluding the inactive VLCCs. The average daily time charter equivalent rate per vessel was $17,197 compared to $15,749 in the fourth quarter of 2011.
Depreciation costs totaled $23.0 million in the fourth quarter of 2012 compared to $26.1 million in the fourth quarter of 2011, the decrease was mainly due to the ending of depreciation following the categorization as held for sale of the two older VLCCS at the end of 2011 and the change in residual value estimation from October 1, 2012, mentioned above. There was little change in total operating costs for the fourth quarter of 2012 which amounted to $32.5 million compared to $32.2 million for the fourth quarter of 2011. Average daily operating costs per vessel were $7,545, slightly up from the fourth quarter of 2011. The technical managers were able to hold costs in a difficult environment without jeopardizing the highest standards in safety and quality of the vessels and operations. G&A expenses for the period were at the same level as in the fourth quarter of 2011.
Interest and finance costs in the fourth quarter of 2012 amounted to $13.8 million, compared to $14.7 million in the prior fourth quarter. Interest paid on interest rate swaps was down by nearly a third due to the expiration of swaps, which was the main contribution to the improvement.
The fourth quarter of 2012 ended with a 48.0% improvement the Company's net loss before impairment and loss on sale of vessel results. $9.0 million or $0.16 loss per share, compared to a $17.2 million loss in the prior fourth quarter, or a $0.37 loss per share. Including impairment and loss on sale of vessel, the net loss was $24.4 million, or $0.43 per share compared to a $56.6 million loss in the prior fourth quarter or $1.23 loss per share, a 57.0% reduction.
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