Gram Car Carriers ASA: Q1 2023 results and proposed dividend

21 Apr 2023 06:30 CEST

Oslo, 21 April 2023 - Gram Car Carriers ASA ('GCC'), the world's third-largest
car carrier tonnage provider, today reported interim results for the first
quarter of 2023 and proposed the company's fifth consecutive quarterly dividend.
The Company also announced its intention to increase the dividend pay-out ratio
to 75% of net income starting from the second quarter.

Key events:

· Board of Directors approved dividend of USD 0.224 per share for Q1 2023,
equal to 50% of net income
· Q1 2023 revenue of USD 41.1 million and EBIT of USD 20.1 million
· Q1 2023 average TCE rate per day: Panamax USD 30,060, Mid-size USD 29,100
and Distribution fleet USD 15,540
· Total revenue backlog of USD 874 million
· Well positioned in historically strong market with 3%/20%/24% open days in
2023/24/25
· Favourable market outlook with high charter rates and long contract
durations
· Reduced margins under credit facilities, contributing to significantly lower
interest expense
· Board proposes to increase the dividend pay-out ratio to 75% of net income
from Q2 2023, adjusted dividend policy to be presented at the AGM

"Our vision is to be a leader in sustainable transport solutions to the global
auto industry. We deliver on that vision through continued strong operational
performance and cash generation as an increasing share of our fleet starts new
charters reflecting the strong car shipping market fundamentals. The combination
of a record revenue backlog, good long-term earnings visibility and an increase
in our dividend pay-out ratio provides a strong foundation for growing,
attractive shareholder distributions going forward," said Georg A. Whist, the
CEO of GCC.

First quarter 2023 operating revenue of USD 41.1 million reflected improved
average time charter rates across all segments compared to the prior quarter.
EBITDA was USD 27.7 million, an increase from USD 23.0 million in the fourth
quarter of 2022, and EBIT amounted to USD 20.1 million (USD 16.0 million). Net
financial expenses of USD 6.9 million reflected mainly interest expense on
vessel loans and leases. Net income for the quarter was USD 13.1 million, equal
to earnings of USD 0.45 per share.

During the first quarter, the Company completed the second special periodic
survey of the Mid-size vessel Viking Ocean within schedule, resulting in 21 days
off-hire. The Mid-size vessel Viking Sea also commenced second special survey
during the quarter, resulting in 13 days off-hire in first quarter and seven
days in second quarter. The Mid-sized vessel Viking Diamond underwent 36 days of
repairs covered by insurance.

The average fleet TCE was USD 25,620 in the first quarter, an increase from USD
22,720 in the fourth quarter of 2022. The higher TCE was a function of higher
dayrates for all vessel types, Panamax at USD 30,060 (USD 26,590), the Mid-size
fleet of USD 29,100 (USD 25,900) and the Distribution fleet at USD 15,540 (USD
13,680). Daily earnings from the fleet are set to increase further over the next
quarters as vessels start on new contracts at higher dayrates.

The Company estimates an average cash flow breakeven rate of USD 16,920 per day
per vessel going forward. The decrease from the USD 17,270 per day communicated
in the fourth quarter report on 9 February 2023, reflects lower debt servicing
cost following a reduction of the margin on the main credit facility.

In April 2023, GCC have agreed with the lenders in the USD 302 million credit
facility to reduce the margin from fixed 3.26% to a net interest-bearing debt/
EBITDA grid pricing. The applicable margin from the second quarter of 2023 will
be 2.75%, with subsequent quarterly revisions. The lenders have also agreed to a
reallocation of USD 40 million from the term loan facility to the revolving
credit facility, providing GCC with increased flexibility to optimise capital
structure and cost. The margin in the USD 15 million facility has been reduced
from 4.96% to 4.20%

The Board of Directors has proposed a cash dividend of USD 0.224 per share for
the first quarter of 2023, equal to 50% of net income for the period. This
represents the fifth consecutive quarterly distribution from the Company to
shareholders. The distribution shall constitute a repayment of the Company's
paid in capital. In March, GCC paid a dividend of USD 0.169 per share for the
fourth quarter of 2022.

During the past year, GCC has built a significant revenue backlog providing good
visibility on future cash flow. Management and the Board of Directors have
assessed the Company's dividend capacity and concluded to increase the dividend
pay-out ratio from 50% to 75% of net profit. The revised dividend policy shall
be effective starting from the second quarter of 2023.

Presentation

The company will today at 10:00 CEST hold a presentation hosted by Georg A.
Whist, the CEO of GCC, and Gunnar S. Koløen, the CFO. The presentation will be
held in English and conducted as a webcast with a live Q&A session at the end.

Use the following link to register for the presentation:

https://invitepeople.com/events/d74f83987e39ef32f752f77f

Questions may be submitted online during the presentation.

The first quarter report and presentation are attached to this release and is
available on the company's website. A recording of the presentation will also be
made available.

For further information, please contact:

CEO Georg A. Whist

E-mail: georg.whist@gramcar.com

CFO Gunnar S. Koløen

E-mail: gunnar.koloen@gramcar.com

Head of Projects and IR Mas Gram

E-mail: ir@gramcar.com

About Gram Car Carriers:

GCC is the world's third-largest tonnage provider within the Pure Car Truck
Carriers (PCTCs) segment with 19 owned vessels, across the Distribution, Mid
-size and Panamax segments. The Company serves as a trusted provider of high
-quality vessels and logistics solutions ensuring safe, efficient and punctual
shipment of vehicles for a network of clients comprising of major global and
regional PCTC operators. To lean more, please visit gramcar.com.

This information is subject to the disclosure requirements pursuant to Section 5
-12 the Norwegian Securities Trading Act.

More information:
Access the news on Oslo Bors NewsWeb site

588146_23_04_21_GCC_Q1_2023_report.pdf
588146_23_04_21_GCC_Q1_2023_presentation.pdf